Spreedbox Holdings Limited (ASX:SBX) Co-founder and Director, Niels Mache talks about the company’s secure private cloud WebRTC unified communications solution, its IPO and growth plans.
Jessica Amir: Hello, Jessica Amir here for the Finance News Network with soon to list Spreedbox Holdings co-founder and Director Niels Mache. Niels, welcome to the Network.
Niels Mache: Thank you. It's great to be in Sydney.
Jessica Amir: So first up, just tell us about yourself and the company.
Niels Mache: My background is computer science. I was one of the founders of the first, or one of the first, open source companies in the world. This company was focusing on Linux software and services, and later on acquired by Red Hat, the largest open source company today. Later on, I founded an open source company that was focusing on privacy solutions and calibration. From there, we were developing a new solution called Spreedbox that is a self-hosted secure cloud that could bring security to corporate customers. It's security, privacy, and data protection.
Jessica Amir: Now to your unique offering in a little more detail. You're really aiming to prevent a lot of global data breaches and hacking problems around the world. Just tell us about this.
Niels Mache: Yes, by having data stored in a cloud, this is always exposed to privacy regulations and also to privacy breach. We have seen this many times in the past. Spreedbox as a device, but also Spreedbox as a software and service addresses exactly this situation. The advantage of our software is the high security standard by having the software open source and in combination with Spreedbox hardware, which is a dedicated hardware with dedicated hardware based encryption. This gives the ultimate protection of the data and a very high level of security and encryption.
Jessica Amir: Now to your IPO. Why are you looking to list in Australia?
Niels Mache: We can develop the market and the market expansion from Australia in the best way in this country, because of the highly educated people, because of the geographic situation in Asia-Pacific, and because of the natural market growth in Australia.
Jessica Amir: So Niels, how much you looking to raise, and where will the funds be going?
Niels Mache: We're looking to raise $4.2 million, and under the public offering we issuing 21 million shares. The funds will be going to marketing and sales and to expansion of the market. Some funds will also go in further development of the product.
Jessica Amir: Where can investors find more information?
Niels Mache: The prospectus is available on Spreedbox.biz. You can contact the lead manager, Tandem Capital, or your broker.
Jessica Amir: Thanks, Niels. A more general question now. Companies can now be fined for data privacy breaches. How is this new legislation change really shaking things up?
Niels Mache: The data privacy regulations are already here in Australia, and they are coming this month in Europe. The fines can be hefty. In Australia, it's up to 1.8 million for a data security breach. That's a real opportunity for us, because with Spreedbox software the company could actually use this software to create their own cloud onsite with full control of the data.
Jessica Amir: Last question, Niels. What's the company's focus for the next 12 months?
Niels Mache: We are focusing on getting stronger into the market, to invest in marketing and sales, to invest also in our partner network of 23 partners worldwide. Geographically, our focus is Asia-Pacific. Also, we want to launch in China, where privacy regulations, also privacy regulations of foreign organisations, is a big issue. Beyond 12 months, we would like to look at the US market. The capital raised gives us the opportunity to drive enterprise service subscription revenue by focusing on various service offerings.
Jessica Amir: Brilliant. Niels Mache, thank you so much for the intro, and good luck with the IPO.
Niels Mache: Thank you very much.