SynthaSite, a start-up Web publishing firm, headed by entrepreneur Vinny Lingham, has raised $20 million (about R200 million) from the Rupert family's Reinet Fund. This gives it the boost it needs to compete in tough economic times.
Lingham and some of his partners originally started the firm in Cape Town, almost three years ago. He is now permanently located in the US city of San Francisco, with half of his workforce near the Silicon Valley technology hub.
SynthaSite aims to make it easy for anyone to build their own Web site and it has more than one million users. Its development is based on user feedback. It recently introduced a number of new features, including an enhanced user interface, more than 60 000 widgets, domain registration, shopping cart features and a blogging platform.
Luxembourg-registered Reinet Fund is a long-term capital growth fund, managed by the Rupert family of SA. Reinet was created out of the restructuring of Richemont, the Swiss luxury-goods group. Columbus VC S`arl, SynthaSite's Series A lead investor, which originally invested $5 million in the start-up two years ago, is a part of Reinet.
“It is really encouraging to get a long-term commitment, especially in these tough times,” Lingham says.
He notes that the US economic depression is proving particularly tough, especially in Silicon Valley, and that job retrenchments have been happening thick and fast.
“SynthaSite has proved to be somewhat counter-cyclic to the prevailing trend. This because a lot of retrenched people need to start their own businesses and it doesn't matter what they do, they need a Web presence. SynthaSite allows them to build their own without having to pay for it to be done.”
He says SynthaSite has built a scalable business model, focused on generating revenue via value-added services and partner relationships.
"What sets SynthaSite apart is its vision and management team," says Frank Vivier, chief investment officer of Reinet Investment Advisors. "The team's unique combination of technology, business expertise and proven track record make me confident this company will be a big success story. Great companies are built during turbulent times."
Johann Rupert, Reinet Investment's executive chairman, says: "SynthaSite is maturing according to plan. This next phase of execution will be both challenging and interesting, and Reinet and SynthaSite together form a strong partnership to meet those challenges."
Related stories:
Richemont invests in Web 2.0 start-up
Google stirs Web 2.0 revolution
Share