The company led a £3.2m second round of financing for Cataloga, an eProcurement and internet market catalogue company. It has also backed a management buyout of Pinnacle Computer Systems Ltd from its parent company, Star Computer Group.
Cataloga’s £3.2m second round was also subscribed by Kennet Capital, which led Cataloga's first VC round last summer. The capital will be used to aggressively develop Cataloga's sales and marketing operations and to support future product development.
Cataloga's CatTrade e-cataloguing software suite, lets users build and maintain electronic catalogues for all eProcurement platforms – including Ariba, CommerceOne and Oracle. Cataloga also works in partnership with buyers such as Sainsburys, Messier Dowty and Tejari.
Earlier this month, Cataloga was highlighted as one of Europe's hottest new software prospects by a panel of European Venture Capitalists in the Wall Street Journal's 'Envy Portofolio.'
Greg Swimer of Cataloga explained that his company has worked hard to secure the funding. “Its no secret that the funding market has cooled over the last year and venture capitalists are being more selective over where they put their money. We had to be absolutely confident of our ability to achieve the sales and revenue targets we have set for Cataloga and have had to examine our plans for growth and expansion in minute detail,” he said.
Elderstreet Investments has also supported the management buyout of Pinnacle Computer Systems Ltd from its parent company, Star Computer Group. Pinnacle, which has been a part of the Star Group since 1988, was acquired by a combination of existing and new management who have acquired a stake in the business. Financial terms of the transaction have not been disclosed.
Established in 1983, Pinnacle is now the UK's leading supplier of control and management systems for the service industry. It is Headquartered in Watford, UK and has a blue-chip client base including Serco Railtest, Servowarm, Siemens, Kingston Business Communications and Securicor. Michael Jackson, chairman of Elderstreet will join the board as non-executive chairman.
Elderstreet was acquired by Dresdner Kleinwort Capital in November last year. DrKB added the remaining 82 per cent of Elderstreet to the initial 18 per cent stake it bought in 1999. Its working relationship with Elderstreet dates back to 1991.