“The first thing was to make sure they registered for SEIS and EIS”, Mark recalled. “I left that with them and, shortly after their registration, they were approached by several investment companies.” This presented George and Robin with a conundrum: they didn’t want the opportunities to pass them by, but they also didn’t want to give away too much of their business in equity.
Mark then visited the Virtus Tech office in-person to offer his advice on how to negotiate with potential investors. “If you don’t feel comfortable with the offers you get, don’t take them”, he said. “Otherwise, these companies will waste your time for 6 months or so, then change their offer at the last minute because they know you’re desperate. They often try to get more of your company for less money, and I told Robin and George to avoid that.”
Virtus Tech rejected several propositions before finding a suitable deal that was closed successfully at the end of August. Incidentally, George revealed that Mark is actually one of several investors, alongside seed investment fund manager, SFC Capital. “Mark has been brilliant”, said George, “and he’s not just going to be an investor, he’s going to be a non-exec, too. This will help us massively in our next stage, which is focusing on the private sector.”
The future is bright
The last four years have been a whirlwind of success for Virtus Tech, and Mark’s mentorship has proven to be an invaluable asset for Robin and George. So, what’s next?
“The next stage is to go out and focus on private sector opportunities,” said George. “We’re really optimistic that customers will be able to come to our website very soon, buy a subscription, and start making their own VR experiences on the same day.” This will be vital to Virtus Tech’s next fundraising round because Series A investors always look for opportunities to scale, and private sector potential is a must in that regard. However, Mark is confident that, if Virtus Tech can prove its private sector viability, there will be significant fundraising opportunities. “Given how much Facebook, Meta, Google, and Apple are now pushing VR and AR”, he said, “I think this time we’re really going to see virtual reality take off.”
Robin, George, and Mark have already identified several sectors that Virtus Tech could look to enter in the near future. “The fashion world, the luxury world – with the customer journey side – and also schools”, said Mark, “are all possibilities. Imagine students being able to immerse themselves in the battle of 1066, for instance. Imagine how interesting and empowering that would be.”
Whichever direction George, Robin, and Mark decide to go in next, we would wager that they are destined for great things. After all, history has a habit of repeating itself, and Virtus Tech’s history is steeped in success.
Three Things We Learned