Angels and Finance Wales like the way SubHub makes the web make money

A Cardiff-based company which specialises in building revenue-generating websites has taken its fundraising to more than £700,000 following the successful close of its largest round.

The latest cash injection into SubHub was led by Finance Wales alongside business angel investors David Hulston and Simon Murdoch.

Mr Hulston, who is chairman of Datpresenter and Chaddleworth Software, joins the company’s board, alongside Mr Murdoch who is a former managing director of Amazon Europe.

Karen Evans, a portfolio executive at Finance Wales, joins the board as an observer.

The funding will enable SubHub, based in Cardiff Bay, to expand its website building and cash generating tools., and by offering a range of service options

Its global clients include online publications such as Cruise International.

It hosts a number of websites for Dragon’s Den panellist James Caan.

In total SubHub employs eight, but with its new funding is looking to increase headcount over the next year.

Since launching it has built thousands of websites on its platform. Around 60% of its customers, ranging from individuals to SMEs, are US-based.

A number of the SubHub supported sites are generating six figure annual revenues from a combination of sources such as advertising, downloads and paid- for content.

American co-founder of the company Evan Rudowski said: “These new funds will help us to accelerate faster and with David Hulston joining our board we’ll be able to tap his substantial experience building fast-growing internet and technology businesses, as well as his local relationships bringing us increased visibility and prominence as a leading hi-tech firm in the capital.

“Cardiff has been good to us and we are pleased to strengthen our ties to the area with the participation of David and Finance Wales.”

Earlier funding for the company has included grants and loans for from the Welsh Assembly Government and Cardiff council.

Mr Rudowski and co-founder Miles Galliford continue as the company’s largest shareholders and as key management.

Customers pay a monthly or annual fee to use the SubHub service and can purchase additional support or features. Mr Hulston said: “What excited me about SubHub is that they are providing a real solution for a problem that is vexing the media industry worldwide – how to make money from content online.

“It is great to see a company like SubHub achieve global leadership from a Cardiff base.

Ms Evans said: “SubHub has been at the forefront of web content monetisation for a number of years and as the media looks for ways to improve financial opportunities through its content, SubHub is well placed to take advantage of this growth area.

“Finance Wales is pleased to be involved in this latest funding round.”

Read more about co-investments at www.financewales.co.uk/coinvest

Source: WalesOnline