Case Studies
PRESS RELEASE
Sutus raises further $4.5 Million funding and hires new CEO
Award-winning Telephony and IT services appliance vendor reaches milestones to unlock $2 million equity tranche and secures additional $2.5 million in debt financing
OCtober 21, 2008, Vancouver, B.C. - Sutus Inc., the company behind the Sutus Business Central™, a unique all-in-one device that combines all the advanced Telephony and IT data communications features required to run a modern-day office, today announced it has secured $2 million in venture funding from BDC Venture Capital, the Working Opportunity Fund, managed by Growthworks Capital Ltd. and an additional $2.5 million in debt financing from MMV Financial Inc. In addition to the new funding, Sutus announced the addition of Mike Donnell as CEO, who brings with him over 25 years of executive leadership experience in the telecommunications and software industries.
Founded in 2002, with over $15.5 million invested into its technology, Sutus is making a strong impact on the small business office communications market with its Business Central product. The new funding will be used to accelerate sales, leveraging the traction Sutus has established in the market since launching its flagship product in late 2007.
Greg Aasen, chairman of Sutus' board of directors, commented, "We are thrilled that Mike has joined us and will be leading the next phase of the company's growth. Mike's experience in leading both public and private companies to profitability, as well as his successful track record in fund raising, channel expansion and new product development will be instrumental in Sutus' future success. His background in service provider organizations as well as vendors to tier-1 service providers will ensure Sutus' development into a leading partner to the service provider community."
Donnell joins Sutus after having most recently led New Global Telecom (NGT), a VoIP services provider, as its CEO. Prior to NGT, Donnell was the CEO of Zi Corporation, a NASDAQ listed company that markets mobile phone software. Before Zi, Donnell served as CEO of Cellular One leading up to its successful sale to AT&T Wireless. Prior to CellularOne, Donnell was Region President of PageNet for the Western US.
"I am delighted to have the opportunity to help lead Sutus' execution of it's unique product vision combining state-of-the-art business grade VoIP telephony with a fully-integrated IT appliance at a price point that is very attractive to the small and medium size business market. Sutus is the first to successfully bundle the right features and components to allow SMB's to enjoy the full benefit of the latest advancements in technology and cost management. The fact that Sutus is able to secure this financing, at a time when the world financial markets are in such turmoil, speaks volumes for the company's success to date and for the quality of the management team", said Donnell.
About GrowthWorks Capital
GrowthWorks* (www.growthworks.ca) is a recognized leader in venture capital fund management with proven experience in the raising and managing of capital. GrowthWorks™ managed funds have $800 million in combined assets and include the Working Opportunity Fund, GrowthWorks Canadian Fund, GrowthWorks Commercialization Fund and GrowthWorks Atlantic Venture Fund. GrowthWorks has a team of skilled and knowledgeable investment professionals with a combined 200 years of experience. The investment team has a proven track record of identifying, analyzing, and structuring investments in emerging sectors. *GrowthWorks refers to affiliates of GrowthWorks Ltd.
About BDC Venture Capital
BDC Venture Capital is a major venture capital investor in Canada, active at every stage of the company's development cycle, from start-up through expansion, with a focus on technology based businesses that have high growth potential and that are positioned to become dominant players in their markets. BDC Venture Capital has been involved in venture capital since 1975 and has to date invested in more than 400 different companies. It currently manages over $550 million in venture capital assets invested in the areas of biotechnology, medical and health related technology, telecommunications, information technology and electronics.
About MMV Financial, Inc.
MMV Financial is a Toronto-based specialty finance company providing creative debt solutions directly to technology and life sciences companies across North America. MMV is backed by top U.S. and Canadian private equity firms and financial institutions including CCP Equity Partners, Caisse de dépôt et placement du Québec, Fonds de Solidarite des Travailleurs du Quebec, HSBC, NewStar Financial Inc., ROI Capital, and Wells Fargo Company. For more information please visit: www.mmvf.com or contact Greg Dimmer, Senior Vice President at 416-977-9718.
About Sutus
Sutus (www.sutus.com) provides small businesses with an enterprise quality all-in-one solution that delivers office network and telephone infrastructure that is affordable, robust and extremely flexible. The Sutus Business Central™ is the winner of INTERNET TELEPHONY magazine's 2007 product of the year award and IT Expo's 'Best Newcomer' award. It is designed specifically for offices with up to 25 users providing all core IT infrastructure as well as on-demand turnkey VoIP and other advanced phone and data services through Sutus business partners. The Business Central significantly improves a reseller's ability to easily service small business customers with locations of 25 users or less.