Australian cloud data analytics company Phocas Software has recently raised AU$45M in an investment round led by Ellerston Capital. This is an exciting development for Phocas Software, as the money raised will fuel the company’s growth in the US and UK markets.
In this article, we will look at the investment round, and why it is a great achievement for the company.
Overview of Phocas Software
Phocas Software is an Australian cloud data analytics company specialising in business intelligence (BI) solutions for various businesses from mid-sized to corporate enterprise. Established in 2006, the company quickly grew and began providing solutions to enterprise-level organisations in the US and UK. Phocas simplifies complex data processes and helps companies make data-driven decisions with visualisation through its cloud-based reporting, dashboarding, and analytics capabilities.
Economic development software provider Ellerston Capital recently led a AU$45 million investment round in Phocas Software to further accelerate the growth of the young yet rapidly expanding company. This fresh capital allows Phocas to continue developing more intelligent solutions which can be deployed as quickly as possible and help ensure businesses have quick access to reliable insights.
Overview of Ellerston Capital
Ellerston Capital is a leading Australian alternative asset management firm. The firm is dedicated to investing in growth opportunities worldwide and was established in 2007 by Gerry Harvey and James Packer. Its team of seasoned professionals has extensive global experience across private equity, real estate and venture capital. The company has enjoyed considerable success with its investments, having invested in over 150 companies since inception, including investments in market-leading global companies such as Taxify, Canva and Zoom2U.
Ellerston Capital provides long-term capital with a disciplined approach to value creation through incremental growth and operational enhancements. The firm’s mission is to empower Australian businesses for successful growth within the global market by providing capital and resources that help achieve long-term strategic objectives and financial goals. In doing so, it seeks to work collaboratively with industry experts and experienced entrepreneurs who are passionate about their sector.
In March 2021, Ellerston Capital announced a AU$45M investment round into cloud data analytics company Phocas Software to support its continued growth in the US and UK markets. This funding underscores Ellerston Capital’s commitment to foster entrepreneurialism on the global stage through investments into businesses that innovate at scale.
The US and UK Market for Cloud Data Analytics
The US and UK markets for cloud data analytics are growing rapidly and are seen as key drivers of the industry’s growth.
Australian cloud data analytics company Phocas Software recently raised AU$45M led by Ellerston Capital to accelerate its growth in these two markets.
In this article, we will look closer at the potential of the US and UK markets for cloud data analytics and what this means for Phocas Software.
Market Size and Growth
The US and UK cloud data analytics market size is estimated to be over US$10 billion in 2019, and is expected to grow at a CAGR of 12.1 percent from 2020-2027. This growth is driven by the need for enterprises to gain improved visibility into customer activities, increased efficiency and cost savings, the ability to make informed decisions with real-time data insights, and better operational scalability.
In the US alone, the cloud analytics market was valued at US$8.36 billion in 2019 and is expected to grow at a CAGR of 11.7 percent between 2020-2027. The major factors driving the growth of this market are increasing investments made in data warehousing services and cloud analytics platforms. Additionally, increased venture capital investments by companies specialising in data analysis makes it easier for enterprises to adopt cloud services for their analytic needs.
In the UK, the adoption of cloud analytics has been on an upward trajectory over recent years due to its growing popularity among small and medium sized businesses (SMBs). It is estimated that SMBs invested more than $650 million into cloud analytics in 2019 with a projected annual growth rate of 13 percent up through 2023. This tremendous growth can be attributed primarily to rising consumer preference for personalised customer engagement strategies and improved access to advanced technology such as artificial intelligence (AI) and big data analysis tools.
Challenges and Opportunities
The US and UK markets for cloud data analytics present Phocas Software with both opportunities and challenges. Although both markets are among the most mature in the world for technology, they are also crowded with established players. Furthermore, political and regulatory environments may differ from those experienced in Australia.
Despite these challenges, Phocas Software has identified several opportunities within the US and UK markets. The current business landscape provides an opportune time to launch new applications of their software that are in-demand due to the recent economic downturn caused by COVID-19. Additionally, remote working conditions have provided organisations greater access to data enabled by cloud analytics services, providing Phocas Software with a competitive edge when targeting companies during this time of transition.
Finally, Phocas Software is well-positioned as a non-US or non-UK company regarding GDPR compliance; providing customers enhanced security assurances that their data will remain secure. As such, when combined with ongoing customer support, these advantages enable Phocas Software considerable competitive positioning within the US and UK markets.
Phocas Software’s Expansion Plans
Australian cloud data analytics company Phocas Software recently announced that it had secured AU$45M from Ellerston Capital to accelerate its growth in the US and UK.
This is a significant move for Phocas Software, enabling them to expand their reach and build a powerful presence in new markets.
Let’s explore why Phocas Software is engaged in this expansion and what impact it could have for the company in the coming years.
Goals and Objectives
As the global leader in cloud-based data analytics for midmarket and enterprise business users, Phocas Software is proud to announce its expansion plans thanks to a AU$45M investment led by Ellerston Capital. As a result, the company plans to deliver advanced business intelligence services and modernise the consumption of data analysis tools.
Phocas Software’s immediate goals are to accelerate growth in the US and UK enterprise markets, build advanced analytics capabilities through technology partnerships, enhance their product within existing customer deployments, and ensure their unique suite of data-driven solutions will continue to meet the performance needs of customers in existing markets. This new funding round will enable them to reach these targets faster and more confidently.
In addition, they hope to capture more market share in established markets while creating new opportunities worldwide by finding innovative ways to help all types of organisations visualise insights from customers’ relevant business data. Phocas Software has already developed an extensive library of proprietary libraries across 175 countries, covering a range of industries including retail, manufacturing and financial services. Investment proceeds will be used towards further automation and integration across various industry verticals and building out their capability into niche sectors such as healthcare and local government.
Looking ahead, Phocas Software is committed to developing relationships with customers who demand more from traditional reporting solutions. In addition, they aspire to create a transformation platform that allows non-technical users easy access to valuable business information on any device — accelerating every strategic decision made for future success.
Strategies and Tactics
Phocas Software recently announced an AU$45 million funding round, led by Ellerston Capital, to accelerate its expansion plans into the US and UK. According to Phocas CEO Darryl Jacobson, this round will fund three key strategies for growth:
- Accelerate product-led growth.
- Expand sales and marketing capabilities in global markets.
- Further digital transformation initiatives.
To support their product-led growth strategy, the company plans to increase its research and development efforts across all its existing platforms and services. This will allow them to invest in new products and increase speed-to-market for current offerings. In addition, for their sales and marketing strategy, they will expand their presence by increasing hiring across different sales channels and identifying new partnerships in new markets. Finally, to support their digital transformation initiatives, they will focus on empowering teams with tools that can create insight quickly via predictive analytics & AI capabilities.
Furthermore, the company plans to open new offices in Germany and India as a part of their expansion plan. This will allow them to access local talent markets in both countries and expand their customer base beyond the UK/US markets where most customers reside. With these strategies & tactics in place, it is clear that Phocas Software is serious about introducing a game-changing analytics platform that offers unique insights into customers’ data across multiple industries worldwide.
Australian cloud data analytics company Phocas Software raises AU$45M led by Ellerston Capital to accelerate its growth in the US and UK (Jeremy Horwitz/VentureBeat)
Australian cloud data analytics company Phocas Software recently raised AU$45M from venture capital firm Ellerston Capital to accelerate its growth in the US and UK.
The investment indicates the growing demand for cloud data services across different industries. In addition, Ellerston Capital’s decision to invest in Phocas Software is an important testament to the company’s potential.
Rationale for the Investment
Ellerston Capital’s decision to back cloud data analytics company Phocas Software with a AU$45M investment was driven by two primary factors: the company’s impressive performance and potential in both the US and UK markets.
Founder Brad Bouchier saw huge success with his first business, Analytics8, which he sold to Microsoft Dynamics for an undisclosed amount. He has since successfully established Phocas Software as one of the market leaders in end-to-end cloud data analytics solutions. The company’s strong foothold in both America, through existing sales partnerships with Microsoft, BitDefender and many others, and Britain make it a prime candidate for continued expansion – which is exactly what Ellerston Capital hoped to enable with their AU$45 million investment.
The injection of capital provides Phocas Software with access to the much-needed resources to take their product global – tapping into foreign markets such as Germany, India, China and Japan – targeting growing areas such as healthcare analytics too. In addition, Ellerston Capital will provide strategic guidance on how best to use this new capital and expand Phocas’s horizons abroad. The partnership is sure to be mutually beneficial; Ellerstons hopes this announcement further bolsters its reputation as an investor focusing on impactful global opportunities. Phocas stands to reap the rewards from their capital injection and guidance.
Benefits to Phocas Software
The subscription-based cloud data analytics company Phocas Software recently announced that it had raised AU$45 million (US $34 million) in Series B funding from venture capital firms Ellerston Capital, Insight Partners and Westpac Bank. In addition to the investments, the company has secured a committed debt facility from Macquarie Bank.
The funding injection from Ellerston Capital and other investors will enable Phocas Software to accelerate its global ambitions, with a particular focus on market growth in the United States and United Kingdom. Investment from Ellerston Capital will significantly benefit Phocas Software, enabling it to build upon its already established network of more than 5,000 customers across the U.S., UK and Australia. It could also help fund additional product innovation and global expansion initiatives such as hiring key personnel within product development, marketing, customer success and data sciences departments.
The strategic investment by Ellerston Capital Is particularly beneficial forPhocas Software Because of its understanding of high-growth markets such as software as service (SaaS) businesses. By leveraging this knowledge combined with their financial expertise and worldwide network of contacts, they can identify opportunities for lucrative investments like this one that can offer long-term benefits to all involved parties. This includes not onlyPhocasSoftware itself but alsoEllerstonCapitaland other related organisations.
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