Digital service company Webfirm has scored a coup by snaring an investment of almost $1 million from Chris Morris, founder of global share registry giant Computershare.
Webfirm chief executive David Burden says Morris’ investment is a coup for the company, which announced this morning that it had raised a total of $3.6 million.
“We’re certainly excited to have someone of his experience and his business acumen involved as our largest shareholder,” Burden says.
“He’s indicated that’s he’s prepared to enter into some discussions as to what help he can give the company and we’re certainly happy to talk to him about that.”
Burden says Webfirm had been talking to a number of investors as part of its capital raising efforts when one of the company’s advisers identified Morris as a potential investor.
“He just liked the story,” Burden says. “With Computershare he has a very good understanding of online businesses.”
Webfirm is one of many small listed companies that have managed to raise funds in recent months, despite the economic downturn.
Burden says there is a clear feeling in the market that investors are on the lookout for bargains.
A lot of people are starting to realise that there’s a lot of companies out there that are undervalued and were sold off too fast.
Webfirm will use part of the proceeds of its capital raising to fund the acquisition of a 20% stake in AdSlot, a firm which operates private electronic marketplaces that allow publishers to sell advertising inventory via an auction system.
Burden says AdSlot’s auction system, which allows advertisers to set specific conditions about the inventory they want to buy, will help publishers sell to smaller clients who are typically difficult to reach and service.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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