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In 2001, Sparkbox made a first round investment in First Rate. This investment supported the vision of the founders for the company, which, at the time, only had basic service validation with few clients.
Working with the Board, we developed and implemented a business strategy that saw the company create a proprietary service model for search engine optimisation, paid search, performance marketing and a supporting measurement system technology.
With this product suite, the company grew extremely fast.
Very soon, First Rate was New Zealand’s leading online marketing company with a client list which included ING, NZ Yellow Pages, Air New Zealand, The Warehouse, APN and many others.
Through the support of these and other clients, the company achieved an unprecedented 100% year on year annual growth for more than five years in a row, which as a result, saw it listed in the Deloitte Top 50 Fastest Growing Companies list.
Sustained growth like this required additional capital and we participated in a further 3 investment rounds, the last being in mid 2003.
In 2004, Sparkbox and its advisors assisted the company undertake a strategic review of the business. As a result of this review, in 2005 the Board approved a plan to expand the company globally, initially launching into Australia. At this stage the company had more than 20 employees throughout ANZ.
In mid 2006, First Rate received an unsolicited approach, which resulted in the company being sold to an Australian ASX listed marketing company.
During the time of our investment, Sparkbox provided a range of services to he company including strategy, financial and operational expertise on the Board, sales and marketing expertise and mentorship for the day to day company management, assistance in negotiating major client contracts, and management of the capital financial requirements of the business.
72 Hours
2-3 weeks
Immediate
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