Satellite Tracking Technology
For container shipping companies operating in the Caribbean and abroad, the Homeland Security regulations of 2004 created very significant logistical challenges. Instead of simple manifests, the regulations required that shipping companies now be able to track, audit and guarantee the integrity of containers they were shipping.
OmniSat knew its satellite-based container tracking system could automate, simplify, and streamline container tracking. The company also knew it needed specialized business expertise to make its vision a reality: expertise in arranging financing, negotiating beta customer agreements, and establishing the industry partnerships required to validate the technology. FinanceNorth was engaged to provide this expertise.
An initial investment of US$4.7 million from a key industry player, with successive equity rounds to follow.
An agreement with a critical beta customer willing to help customize the solution for its specific needs.
Endorsement by the industry association.
A long-term strategic plan for domestic and international market expansion; and,
The company was the target of a friendly acquisition, by an international telecommunications company, for an amount exceeding US$100 million within 36 months.
Case Study Summary:
|The Company||The Challenges|
|High tech start-up developing a Low Earth Orbit (LE)) satellite-controlled container tracking system.
System supported compliance with Homeland Security regulations.
Target markets included the U.S, Mexico and the Dominican Republic.
|Funding for R&D and production was limited.
A beta customer was required to prove the viability of the solution.
Industry partners were needed to validate OmniSat’s technology and value proposition within their target markets.
|FinanceNorth’s Role||The Outcomes|
|Structure and raise successive rounds of investment capital.
Identify, negotiate, and manage beta customer deployment.
Identify and negotiate industry partnerships.
Develop long-term strategic and operations plans.
|A new strategic plan, including a strategy for international markets development, was created.
A capital investment of $4.7 million (and successive follow-on rounds) was secured.
A new beta customer / development partner (an American trans-Atlantic shipper) was established.
A strategic partnership with a U.S electronic manifest company was negotiated.
The industry regulatory and oversight association endorsed OmniSat’s technology.
The company was acquired by an international telecommunications company for an amount exceeding US$100 million within 36 months.