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NZ software startup raises $620,000 for US expansion

NZ Newswire logoNZ Newswire 5/12/2016 Fiona Rotherham
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New Zealand cloud-based software startup Datagate has raised $620,000 so far in an over-subscribed capital raise supported by existing and new investors which will be used to expand its sales team as it pushes into North America next year.

Datagate provides online billing and reporting portals for businesses that bill according to subscription or usage which has been growing with the upsurge in cloud computing.

It's initially targeting resellers to telcos and utilities so end users of aggregated services such as mobile phone, electricity, gas, and broadband, receive a single invoice from one reseller.

It's a bit like going into a bricks and mortar store and buying shoes and a handbag and only paying once rather than twice, Datagate chief executive Mark Loveys said.

It has proven its business model in New Zealand by working in particular with Spark Wholesale which advised there was a gap in the market for this type of billing solution for resellers.

Datagate was spun out as a separate company from NZAX-listed Enprise Group a year ago which has had its shareholding diluted to around 48 per cent from 50 per cent despite participating in the latest capital raise where $500,000 was sought.

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