Case Study - UK Explorer

UK Explorer GLE’s London Business Angels (LBA) client, UK Explorer, recently achieved a profitable trade sale to Spectrum Interactive UK.

UK Explorer started in May 1998 providing wired and wireless internet access solutions for hotels and airports with an impressive list of blue chip clients and locations.

The creative company was launched with initial capital of £20,000 by two widely traveled young entrepreneurs. In 1999 a further £50,000 was invested in the business comprising £20,000 management funds and a £30,000 loan under the Government’s Small Firms Loan Guarantee Scheme.

The idea of convenient internet access facilities stemmed from their frustration in finding only sporadic outlets from which to surf the web while on business trips abroad. Their first idea was of a coin operated vending machine and on conducting research the team discovered that a model already existed in Germany.

Technological improvements were made to the model and only equity funding was needed. UK Explorer first approached LBA in 2000, seeking to raise £300,000 from the Network. The team successfully secured the full amount from only one LBA investor, Jonathon Harrison who said “The triggers to this investment were the two founders whom I found very reasonable, open and honest; one existing contract, a proven business model, close proximity to my home and I felt I could help them through my own business contacts in the hospitality industry.” He later made a further equity investment of £30,000.

Before approaching LBA in 2000, the team received an attractive Venture Capital equity offer but they turned it down as they preferred to work with an experienced business angel. In early 2005, the management team were deciding on whether to expand or make a trade sale when Spectrum Interactive heard of their plans. Anthony Clarke, Managing Director of LBA, said, “The resounding success of UK Explorer’s profitable exit demonstrates the versatility and resilience of the LBA model.”