26th June 2007
CAT.81/2
BLACKSTAR GEARS-UP FOR GROWTH
Investors have ‘tuned’ into a Northampton-based business which looks set to play all the right notes and grab a share of the global guitar amplifier market estimated to be worth around £600m annually.
Founded three years ago, Blackstar Amplification Limited has developed and produced a full range of innovative guitar amplifiers and associated products. However, having funded the necessary research and development, the company sought working capital to support a sales and marketing drive and fund the importing of merchandise into the UK from Korea.
Blackstar - one of the entrants from last year’s Connect £1 million Investment Challenge - has received a total funding package of £450k. Catapult Venture Managers, the lead institutional investor has invested £185k through the East Midlands Regional Venture Capital Fund (EMRVCF). A further 200k has been injected by Business Angels and £75k from the East Midlands Early Growth Fund managed by E Synergy. The company was advised on the fund raising by Steve Blount of CMR, with Geldards and Berryman advising on legal matters.
Pete Le Noury, investment director with Catapult Venture Managers, commenting on the investment said: “This is a very exciting business set-up by former members of the new product management team from Marshall amplifiers, one of the market’s most recognised names. They have developed some fantastic new equipment which is already being well received in the market.
“Blackstar already has orders confirmed and distributors in place to create an immediate global business and is capable of delivering a multi-million turnover business within five years by focusing on the main developed markets of the USA, Europe, Japan and Australia.
“A number of big name bands have already purchased the full range of effect pedals and are using them in the recording studio. Significant overseas orders from Japan and Australia have already been secured and are in production.”
The Blackstar management team comprises four former key personnel from Marshall with Ian Robinson as managing director, Bruce Keir (technical director), Paul Hayhoe (sales and marketing director) and Richard Frost (operations director).
Ian Robinson comments: “Blackstar is defined by its highly innovative products and cutting edge market-led approach. However, although we are part of the music business we never lose sight that in many ways this is a business like any other and the fundamentals of good business practice still remain true.”
The global amplifier market has grown by 50% over the past four years with the UK market worth £37m, or 7% of it. The sector has seen new entrants predominantly as a result of teams falling out of the larger market leaders.
Concludes Pete Le Noury: “The traditional larger players are losing market share as they are not innovating and bring new products to market.”
- ends -
< Back
