It’s been a busy year for the portfolio in places you wouldn’t ordinarily expect, back in February it was the Oscars with The Shore, and last night it was Dragons’ Den. Lough Shore partners are certainly delivering some “sizzle” in 2012 and getting Northern Ireland start-ups some great international media exposure. We only hope it continues in this extraordinary vein!
So which of the portfolio appeared on last night’s Dragons’ Den? Well, earlier this afternoon we announced our investment in SendmyBag (SendmyBag.com). A start-up based out of Belfast and run by an incredible 27-year-old founder, Adam Ewart. It’s certainly been a hectic 24 hours in the aftermath of last night’s show and we are delighted to have played a small part in that. Mostly though, we’re excited to get started with Adam and look forward to partnering with him and his team to bring the service to market and execute on the incredible vision he has for the business. Of course, the timing of last night’s tussle with the Dragons could not have been better, with all those students due to head back to University in the coming weeks.
For those who didn’t see last night’s coverage, SendmyBag provides people a simple and affordable door-to-door baggage transportation service that can be booked online and arranged for collection within 24 hours. Not just that but it allows users avoid the ever-increasing baggage handling charges when flying and constant frustration with the inconvenience of strict ‘hand luggage’ rules. Simply put, it’s a fantastic start-up in a space ripe for disruption.
Looking to the wider portfolio, as of the end of August I’m pleased to report that every company we’ve been working with over the last couple of years is having its best ever year in 2012. I doubt there are many investors who can make this claim given the recession that continues to dominate things in the UK, and especially in Northern Ireland. This even includes a few businesses we have recently exited, for one reason or another, and for me, their success underpins the investment philosophy we’ve adopted here at Lough Shore.
Since the start of the year we’ve narrowed our focus back to web and finance technology, which will be the core tenets of the strategy in the years to come. We’re going to play to our strengths. We’ve also changed our criteria to only focus on working with businesses who are exporters (primarily with target markets outside the island of Ireland) and see the value-added opportunity in the experience and expertise we can bring to bear.
SendMyBag, Adam, and his team are an interesting addition to the portfolio and I’ve no doubt it has the potential to become a fantastic web start-up over the next five years. Transporting luggage (substitute sports equipment etc.) around the world is a huge business opportunity. The original seed idea was focussed on Northern Irish students travelling to University in England, Scotland and Wales but then came the explosion in excess baggage charges worldwide; throw in the ever increasing levels of business travel, migrations, etc., and there is a monstrous global market to leverage.
With SendmyBag the strategy to date has been to build a profitable core business to fund investment in enabling technology focused on vertical integration with key suppliers and delivering world class customer service. The build out to date has been funded from operations. For a start-up, this is impressive in itself but importantly, it has provided us with the opportunity to make an investment to provide a war chest for expansion into a profitable going concern.
Aside from that, the real beauty of SendmyBag is that anyone can use it – give it a go at www.sendmybag.com
– Danny