600,000 euros for the telephone exchanges of the future

A sleek 150 years after Alexander Bell invented the telephone, it remains an indispensable communication tool for companies. However, the classic telephone exchange has had its time. Sippy is bringing it to the cloud, enabling businesses worldwide to make and receive calls from any device, all while using the same number.

Challenge

Around half of Belgian companies still rely on traditional telephone systems. With the rise of remote and hybrid work due to the coronavirus crisis, the need for a location-dependent telephone exchange has quickly become obsolete. Sippy addresses this issue with its cloud-based telephone exchanges, which are distributed through a partner program. To capitalize on this momentum, the Limburg-based company sought investment for both sales and marketing as well as technological innovation.

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Approach

The funding process began with a capital increase. Sippy focused on business angels with relevant experience and expertise. They found two individuals in their network who believed in Sippy's technology and were willing to invest €100,000 each.

The capital increase became the first building block of a successful financing strategy. With €200,000 raised, Sippy was able to secure additional funding. They convinced Belfius (Kempen-East Region) to provide a loan of €250,000 and PMV to lend €150,000.

In total, Sippy raised €600,000, gaining not only the necessary capital but also valuable experience and a reliable sounding board for their growing team.

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Result

With the €600,000 investment, Sippy can accelerate in two key areas. The company is now able to hire additional sales and marketing personnel to actively push its cloud-based telephone exchanges into the market. Meanwhile, innovation remains a top priority. The development team can continue adding new features to the existing technology, and when customers request additional features, Sippy has the flexibility to seize those opportunities as well.

“Our oldest team member is 29 years old. Not only were we looking for funding to grow, we were also looking for experience and expertise. It was the first time we raised money, The Harbour knew what figures and arguments convince business angels and banks. They put together the perfect investor pitch for us.”

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