Company Set to Revolutionise Advertising Relocates to Merseyside with Backing from the Liverpool Seed Fund

29th January 2008

A company which provides a unique mobile application that is set to transform advertising has relocated from Rochdale to Liverpool with backing from Merseyside Special Investment Fund’s Liverpool Seed Fund.

Host Telecom, now based at Trident House, has developed a video ring back tone for use on mobile phones and internet-based communication providers. The video images will replace the usual ring tone and enable brand and commercial advertisers to access a new, mass market advertising medium.

The Liverpool Seed Fund has invested £100,000 to support the proof of concept phase of development – where the viability of the technology is tested and potential market demand is assessed. Liverpool Ventures has assisted Host Telecom throughout the investment process and continues to work closely with the company.

Host Telecom was the brainchild of chairman, Martyn Butterworth. He set up the company in 2006 with co-directors Colin Barnes and Ian Hollingworth.

Martyn Butterworth said: “In the UK there are over 60 billion mobile connections per year which represents 400 million hours of available advertising and social networking space a year. We have already received significant interest from potential advertisers.

“We are also looking to partner with mobile network operators who will be able to gain new revenue sources from the advertiser. The user will also benefit by being able to access and generate extra content and also get calls and texts subsidised by the advertiser.

“The support from the Liverpool Seed Fund and Liverpool Ventures has been crucial in getting Host Telecom started. It is quite hard to find investment for a business at this early stage and in addition to finance, their knowledge, advice and network has been very important.”

Liverpool Seed Fund investment manager, Mike Bakewell said: “Mobile-based marketing offers huge opportunities and could be one of the biggest advertising channels yet seen. We believe this product to be groundbreaking and think the company has excellent market potential.”

Janet Butler, Business Consultant with Liverpool Ventures said: “Host Telecom has already had excellent feedback from their demo which was shown to various advertising and media experts. The management team is strong and dynamic and we are pleased to be supporting them.”

Legal advisors involved in the transaction were Aaron & Partners (Liverpool Seed Fund) and Corporate Blue (Host Telecom).

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Photo shows L-R – Ian Hollingsworth (Host Telecom) Mike Bakewell (Liverpool Seed Fund) Janet Butler (Liverpool Ventures) Colin Barnes (Host Telecom)

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