A profitable, fast growing London-based technology company with a strong brand and management team.
An online fine art printing and delivery service with over 13,000 active clients, launched in 2007. Now with annual revenues of £2.1m, the business has built to 25% yearly growth rate, 17% net profit margin and seeks to expand to higher volumes with higher margins by means of a new proprietary web platform that enable clients to sell art direct to consumers. Nine pilot enterprise clients with large, high quality online image collections they wish to monetise have signed up for the new service.
PRODUCTS & SERVICES
1. Service producing and delivering photographic images of high enough quality to hang on a wall for professional artists (mostly photographers) and their customers. This service has built to annual revenues of £2.2m, 25% yearly growth rate, 17% net profit margin.
2. New growth for which the funding is sought called “thehub”. This new service fully enables printable art to be sold direct to consumers from online collections of images with minimal effort. Using state-of-art and software proprietary to Printspace, any online gallery can be easily converted to deliver sales. This allows some very substantial collections to be monetised in very short order.
Printable artwork requires expensive production facilities and the means to integrate the artist’s colour corrected high resolution digital files into the process. It also needs to be mounted, framed, packaged and delivered to the customer wishing to hang it on a wall. The Printspace solves for artists all the problems associated with the above. The next problem to solve for artists is the selling process. Most artists find this difficult to organise and execute and it is one more thing which keeps them from creating their work. “the hub” from Printspace solves the problem of processing sales.
The existing print, mount, pack and deliver service is based on web mediated price list based on size and customer chosen options. Essentially these are fixed-price type revenues.
The new service “thehub” delivers revenue as a percentage of the selling price of the finished piece. This means that printspace sees higher margins based on variable-price type revenues whilst operating on fixed-price type costs.
The most likely exit is via trade sale to:
a) Large multinational owners of image archives seeking to monetise those archives via art sales. This could include traditional media companies, picture agencies or large social networking enterprises with extensive image archives.
b) Large consumer focused online photo-printers seeking pro-market diversification.
c) Large consumer focused online art enterprises seeking global fulfilment capability and a stable of artists producing a constant supply of original artwork.
d) Large companies with well established interior decor / furnishings businesses seeking to cross-sell / up-sell wall art to their existing customer base.