Localbiz Well On The Way
Business angel Justin Whitston has made a six figure investment in Localbiz, formed in 2003 by Ian Linnegan and Alan Drew. The company provides a vehicle for schools to develop community websites with their students whilst offering pupils the opportunity to work on a reallife business.
The pair were looking for finance to grow the business and were introduced to Whitston after he saw their executive summary published on the YABA extranet.
“It was clear that the company’s business plan and model needed some work in order for it to realise its huge potential,” says Whitston, “We’ve spent the last year rewriting the business plan and developing proprietary systems to underpin its growth.”
With the help and guidance of Justin, who now has full involvement in the company, Localbiz is aiming to partner with 60 schools in its first year and has already secured 20 partners since it began selling its new product in April 2010.
“The business has changed significantly since we first became involved last year,” says Whitston. “We provide the package to schools for free – and it fits all the relevant enterprise education criteria – and market the inventory and sponsorship of the platform to local businesses on their behalf. Advertising revenue is shared with the schools and the return for schools is between £2,000 and £4,000 each year."
Localbiz is an investee company of Whitston’s newly launched investment programme Venturelab.
Venturelab is a new concept in start-up investment, mentorship and business support which launched in July this year. The business is privately funded and offers a six month seed fund and mentorship programme designed by Whitston.
