The Finance for Business North East Technology Fund has taken its 2012 announced deal count to five by supporting The Test Factory.
The Test Factory has secured £435,000 from the Finance for Business North East Technology Fund in the form of a debt arrangement and equity stake.
Under the terms of the deal, the investment is broken down into a £250,000 debt arrangement and £185,000 of equity.
Sunderland-based online assessment and survey business The Test Factory has reported growth in annual revenues of 400 per cent in the past 12 months, as well as opening a division in North America during the same period.
Managing director and founder Kevin Beales says that the investment will help the business invest in development to enhance its product portfolio. ‘Our increased appeal and functionality will enable us to take advantage of opportunities in key growth areas including Asia and Australasia.’
Beales adds that the business has positioned itself at the forefront of a ‘niche but fast-growing market’, and is now in a good position to develop. He highlights Asia as an ‘exciting area’ for the company, where places such as India are already popular with the outsourcing industry.
For the Finance for Business North East Technology Fund, which is managed by IP Gxroup, the deal follows on from backing provided to MymCart and Durham Graphene Science. Further 2012 completed transaction activity has come in the form of a £500,000 fundraising round in software-as-a-service business Datum360.
Ian Wilson, investment manager with IP Group in Newcastle, says, ‘The Test Factory has already established a global reputation in its sector and we are pleased to be able to support that further with this investment.
‘It is a real asset to the North East that businesses such as this are based there.’