"Initially I was concerned about venture capital involvement but Bridges Ventures has been excellent. Their friendly, supportive and positive approach have added a great deal of value to SimplySwitch and helped us grow, well ahead of plan." Karen Darby, Co-CEO of SimplySwitch
SimplySwitch is an independent and free price comparison and switching service. It offers consumers impartial, up-to-date information on gas, electricity, home phone, broadband, mobile phone, credit card and car insurance. As well as providing a web-based service, SimplySwitch operates the UK´s largest, dedicated customer service team for those wishing to compare and switch providers 'offline'.
Launched in 2002 and located in Croydon, SimplySwitch saves people over £20 million on their bills every year. In June 2006, SimplySwitch founder and co-CEO Karen Darby won the finance award at the First Women Awards, backed by the Confederation of British Industry. In November 2006, Darby was also a finalist for 'Entrepreneur of the Year' at the National Business Awards.
Believing SimplySwitch to have a strong management team, high growth potential and a robust business strategy, Bridges Ventures initially injected £125,000 start-up capital in December 2002 and invested a total of £345,000 during the 3 and a half years that the investment was held. Bridges Ventures sold the investment in SimplySwitch to the Daily Mail and General Trust in August 2006 for £22 million returning c.£7.5 million which represents a money multiple of 22x and an IRR of 165%.
Business growth figures stated below cover the period that Bridges Ventures held the investment. SimplySwitch created over 80 jobs in a deprived area 60% of staff came out of unemployment; helped thousands of consumers save over £20 million on their utility bills; and the company was on target to turnover in excess of £6 million in 2007. Developments under private equity/venture capital ownership enabled rapid growth of the company. Bridges Ventures chaired the company during its formative years, then appointed Chairman with industry expertise to the Board to drive it forward. The backers undertook extensive strategic research into new markets, provided strategic and financial advice and determined the optimum time for exit.
