Development Capital’s investments in Irish SMEs reaches €100m following €6 million investment in IP Telecom
Fast-scaling Irish telecoms firm IP Telecom has raised €6m in funding. The investment was made by Development Capital.
Led by CEO Shena Brien, IP Telecom will use the funding to accelerate the company’s organic and acquisitive expansion plans in the business telephony sector, with intention to increase annual revenues from a forecast of €6m in 2023 to €11m in FY2024.
“At the start of 2023, we set out our goals for the year: the continuation of providing impactful and improved telecoms services nationally”
Headquartered in Park West Business Park, IP Telecom was established in 2010 and is led by Brien and Brian Chamberlain, CTO. IP Telecom offers a full suite of innovative, leading-edge business telephony services and solutions to over 4,000 business customers across the tech, IoT, education, transportation and logistics, retail and agriculture sectors.
Making the connection
With its team of 40 highly skilled employees, IP Telecom is experiencing significant year on year recurring revenue growth averaging 25% a year.
The company’s customers are located throughout Ireland and include Sureskills, Portwest, Decathlon, Repak, Right Price Tiles and the Irish Cancer Society.
“Since the very beginning of IP Telecom in 2010, we have experienced consistent growth. Now, together with Development Capital, who share our vision for success, we are looking forward to reaching new heights,” Shena Brien explained.
“At the start of 2023, we set out our goals for the year: the continuation of providing impactful and improved telecoms services nationally. With this investment, our innovative technology solutions, dynamic customers, and Anthony O’Driscoll’s counsel on our board, we are set to fulfil this goal and much more as part of the thriving, innovative tech ecosystem in Ireland.”
It is the 13th investment by Development Capital, bringing the total value of its investments in Irish SMEs to date to €100m. The investment in IP Telecom is the fourth by Development Capital Fund II, the second €75m fund managed by Development Capital. The other three investments by Development Capital Fund II so far are Spotlight Oral Care (Galway), Nomadic Foods (Donegal), and Wogan Build Centre (Louth).
Announcing the new investment made by Development Capital Fund II, Anthony O’Driscoll, Investment Director of Development Capital, said: “We are delighted to announce details of this significant investment in another highly ambitious company and management team. We are excited to partner with and back IP Telecom’s goal of becoming a significant player in the hosted business telephony sector, which has experienced significant recurring revenue growth and demand in recent years.”
Addressing future investment plans, Development Capital Co-Founder and Partner, Andrew Bourg said: “We are delighted to complete our investment in Brian, Shena and the IP Telecom team. IP Telecom has demonstrated a clear and focussed strategy in delivering its enterprise and business solutions.
“We look forward to assisting them achieve their ambition of both organic and acquisitive growth. It is our 4th investment from Fund II to date, and we look forward to partnering with further established Irish SMEs that have significant growth opportunities, seeking investment between €2-€12 million”.
The investment in IP Telecom brings Development Capital’s total investments in Irish SMEs to €100m since 2013. Development Capital is an Irish development and growth capital fund manager founded in 2013 by Andrew Bourg and Sinead Heaney. It provides development and growth capital ranging from €2-12 million to Irish SMEs which have significant growth opportunities, primarily in export markets which require growth funding to unlock or accelerate.
Development Capital manages two funds, the BDO Development Capital Fund (a €75m fund established in 2014) and Development Capital Fund II (a €75m fund established in 2020).
Main image at top: Shena Brien, CEO – IP Telecom and Andrew Bourg, Founder & Partner – Development Capital
