Localbiz, a company that helps schools generate revenue, whilst providing pupils with the chance to work on a real-live business, is now well on its way to profitability, thanks to a six figure investment from business angel Justin Whitston.
Justin Whitston was introduced to Localbiz through the Yorkshire Association of Business Angels, which circulated its details after being approached by founder and Managing Director, Ian Linnegan. Localbiz is an investee company of Whitston’s newly launched investment programme Venturelab.
“I could see huge potential in Localbiz, but it was clear that its business plan and model needed some work in order for it to realise that potential,” says Whitston, who has spent 12 months mentoring and working on its business model. “We’ve spent the last year rewriting the business plan and developing proprietary systems to underpin its growth.”
The Localbiz idea was developed in 2003, by Ian Linnegan and Alan Drew. The company aimed to provide a vehicle for schools to develop community websites with their pupils, providing pupils with the chance of learning enterprise skills whilst working on a live project. The pair were looking for finance to grow the business when they met Whitston, who now has a full involvement in the company.
“The business has changed significantly since we first became involved last year,” says Whitston. “We provide the package to schools for free – and it fits all the relevant enterprise education criteria – and market the inventory and sponsorship of the platform to local businesses on their behalf. The advertising revenue is then shared with the schools. This provides the schools and the pupils with the very first real enterprise education platform as the return for schools is between £2,000 and £4,000 each year.”
Localbiz is aiming to partner with 60 schools in its first year and has secured 20 already, since it began selling its new product in April 2010.
Venturelab is a new concept in start-up investment, mentorship and business support which launched in July this year. The business is privately funded and offers a 6 month seed fund and mentorship programme designed by Whitston himself.“ I wanted to establish a much more dynamic way of investing in companies in the region and create an exciting brand where entrepreneurs can thrive.”
