Second Investment Since Launch in Spikes Cavell & Co

July 01, 2007

IQ Capital the UK-centric early stage venture fund is pleased to announce that it has made its second investment since launch in Spikes Cavell & Co. IQCF have completed a £400,000 investment in Spikes Cavell as part of a total funding round of £650,000. Dr Andrew Rickman OBE, an experience entrepreneur and business angel who also participated in the round, will also be joining the Board of the company as its Chairman.
Spikes Cavell provides online spend intelligence solutions to the public sector through their proprietary analytical software platform – the Observatory. The Observatory is an online database, which clients can use to view details of their expenditure data. The company won framework contract status to provide spend intelligence services to the public sector in England and Scotland over three years ago. Initially working with local authorities exclusively, Spikes Cavell have since grown to work with a broad spread of public sector entities including the NHS, higher education, police, fire & emergency services, central and civil government and registered social landlords (RSL’s).
The Observatory provides all clients with the ability to gain a comprehensive understanding of how and where their budgets are spent, and whether they source locally or further a field. Public sector budget makers use the information gleaned from the Observatory to formulate procurement policy, track progress towards key procurement objectives and to identify opportunities for substantial efficiency improvements and cash savings in the procurement of bought-in goods and services.
The Observatory currently provides instant online access to over two million creditors, 34 million invoices and financial transactions worth over £55.5 billion.
Commenting on the investment, Max Bautin of IQ Capital said: “We were drawn to Spikes Cavell because of their impressive track record and their excellent growth prospects. At the moment Spikes Cavell have a dominant market share of some 15% of public bodies who use a spend intelligence service. However, the potential of the market is massive – there are over 3,000 bodies within the UK public sector alone and there are other markets for expansion as well. The company has an enviable client base and this is perfectly matched with a depth of knowledge and service ensuring customer satisfaction.”
Luke Spikes CEO of Spikes Cavell added: “I am excited to be working with IQ Capital and Andrew. They are providing us with the right mix of funding and support to ensure the acceleration of the growth of our business. We will use the investment to build up our sales force and further product development, whilst also supporting our expanding infrastructure. We look forward to growing our customer base and continuing the excellent progress we’ve so far achieved.”
Andrew Rickman the IQ Angel teamed with Spikes Cavell added: “Spikes Cavell has a unique offering and is already profitable and growing at pace. Their products have an important role to play in contributing to public sector efficiency. At the same time there is considerable scope to expand the company’s services into the private sector and beyond the UK. I am delighted to be on board and look forward to assisting in the growth of the business.”