Benchmark Capital invests €3.2m in NewBay Software
18 January 2004
By Gavin Daly
Sunday Business Post
NewBay Software plans to hire more salespeople and increase product development after raising €3.2 million from Benchmark Capital. Barry Maloney the former Digifone boss who is a European partner in Benchmark, has joined the board of NewBay.
NewBay was set up in 2002 by Paddy Holahan, the former marketing boss of Baltimore Technologies. The company has developed software called FoneBlog that allows mobile phone users to create web logs and to post pictures, audio and text from their phones.
Holahan said NewBay had licensed the software to 02 Ireland and to a US mobile operator, which cannot be named.
“We have a few other contracts dropping very soon,” he said, “We have proven that we have a good product, and this year will be about getting it out there with the operators.”
Holahan would not comment on revenue at NewBay, but said the company was profitable and employed around 20 people in Ireland and the US.
“We will hire an extra couple of salespeople and focus on new product developments,” he said. “We have some prototypes for new products, which we can commercialise with this funding.”
Holahan said the company had raised the funds after a six-month process involving several potential investors.
“In the end Benchmark put in 100 per cent of the investment, which makes things much simpler. Benchmark is the right kind of investor for us.”
Maloney said NewBay was well placed to take advantage of the demand for mobile Internet services.
NewBay was founded in 2002 with investment from Holahan and software firm Propylon and its founders, Declan Hogan and Paul McKeon. Michael FitzGerald, who sold his company Microcellular Systems for $15 million in 2000, is also an investor in NewBay.