AN ambitious project which could catapult a digital expert into the lucrative e-learning market – and create jobs at the same time – has captured the imagination of local business experts.
Tony Abbott and Alan Hammersley run mylearnadfriend, an e-learning portal for a variety of businesses. Allowing the creation of bespoke e-learning courses for each individual business.
The pair, who first met back in 1992 before setting up their project 20 years later, have created a unique package which looks set to revolutionise the lucrative worldwide e-learning market.
With over 60 years combined training and learning experience between them, Tony and Alan are now about to move into the booming global e-learning, which is worth an estimated $102bn having doubled over the last two years.
To help them reach the heights, the UK-based directors have set up a Growth Funding package which encourages investors to pledge an equity investment in return for a hefty payout when the business flourishes towards the end of a five-year plan.
The mylearnad friend duo set themselves an ambitious target of £300,000 to raise in a month-long campaign which – if successful – will lay the foundations for them to take their brainchild onto the next level.
And they have been given a huge boost after around £200,000 was pledged by business experts who have seen the potential of their project and were quick to get onboard.
Dad-of-four Tony, 57, from Great Ayton, said: “To get two thirds of our target pledged so quickly into our campaign shows we are not the only ones who see the massive potential of our product.
“What we have put together is like nothing else on the market, we have had £170,000 Proof of Concept funding from North Star to get us to this level. We are now excited by what lies ahead. We have had firm enquiries from several businesses in various sectors lining up to use the product.
“The platform is now live to accept investments of anything from £100, but through various networking events and word of mouth in the business world, people have heard about what we are doing and we have already had a lot of support.”
Mylearnadfriend is initially targeting 25 sectors, but has had enquiries in several others across the world.
Tony continued: “We are looking at around 25 different sectors which could benefit from e-learning, or learning on the move.
“We have had interest from retail, aviation, the hotel and leisure sector, financial and logistics. This product is beneficial for anyone who isn’t desk-bound, or who finds themselves on the move through the course of their day.
“They can log in and out of the system throughout the day, they could be sitting on a train or in a departure lounge at an airport or it could be used during downtime at a plant or factory.
“The firm who has set up the training package is able to monitor each employee’s progress, they can see how long they have been logged on for, how long it has taken them to complete a question, they can monitor them every step of the way.
“The days where a training package was put onto a powerpoint, or a CD or DVD, are gone. This programme is the platform, the bones of it if you like, and the business adds the meat so it fits their exact needs.
“To put it in layman’s terms, treat it like a taxi. We have simply provided the vehicle, and you can take it whichever direction you want.
“Growth Funding is a system which helps accelerate business, and it is ideal for what we are trying to achieve.”
Alan, a 52-year-old married dad-of-two from Hartburn, appreciates the financial risks which people may have concerns over before making a pledge, but has moved to reassure them that anyone keen on getting involved can have all of their questions answered before they commit.
Speaking from the mylearnadfriend base in Boho, Middlesbrough, he said: “People can pledge whatever they want, some have staked £100 into the Growth Fund page, others have gone to five or six figure sums.
“The larger the stake, the higher the return the individual receives when the business is sold at the end of the five-year plan.
“As an example, if someone put in £500, the percentage they would get at that rate would see them pick up a return of £7,500 if the business sold for £30m.
“That £30m figure is what is predicted on the business plan. It could be higher than that, the way the digital sector is increasing at the moment, sky is the limit. And the fact that this platform can be used by any company in any industry means our potential reach is gigantic.
“The £300,000 funding gives us the base to bring in people with media skills, content managers, people to work in the sales team and marketing of our product.
“We will need sector specific executives to work with individual businesses, and once we have proved we are a secure business we can open up to the international market where we have already identified some potential clients.”
WHAT IS CROWD FUNDING?
A mutual fund whose aim is to achieve capital appreciation by investing in growth stocks.
They focus on companies that are experiencing significant earnings or revenue growth, rather than companies that pay out dividends.
The hope is that these rapidly growing companies will continue to increase in value, thereby allowing the fund to reap the benefits of large capital gains.
In general, growth funds are more volatile than other types of funds, rising more than other funds in bull markets and falling more in bear markets.
HOW CAN I GET INVOLVED?
TO join the ever-growing list of investors into mylearnadfriend’s ambitious project, individuals need to go through the Growth Funders’ website and register their interest.
The idea is open to a wide range of investors, perhaps someone who is recently retired and looking to invest a small portion of their pension pot, to a larger business with funds to invest in other markets.
Firstly, they will be asked to fill in a questionnaire to show they understand the potential risks of a financial pledge, before being asked to input just how much they would like to stake.
The payment is not taken until the £300,000 target is reached, and should an individual’s circumstances change in the meantime, they can still withdraw their offer.
Due diligence will be carried out by the Growth Funders team to ensure the pledge is genuine, and can be afforded by whoever has made it.
Should the £300,000 barrier be broken, the team at Growth Funding will then go through all of the pledges and choose the most secure ones before contacting the investor to tell them they have been successful.
For the duration of the project – which will run until 2020 – Growth Funders will manage the shareholding on behalf of the individual through a nominee on the board.
As the business grows, the plan is to sell it to a major IT player or another large organisation between three and five years into the five-year plan.
On completion of that sale, the investor will receive their tax-free return.
For more information, email info@mylearnadfriend.co.uk, visit www.mylearnadfriend.co.uk or follow the links to mylearnadfriend’s campaign at www.growthfunders.com
WHY I GOT INVOLVED?
LOCAL entrepreneur James Robson knows a good business when he sees one – and he’s been quick to get involved with mylearnadfriend’s ambitious project.
James founded the hugely successful Exwold Technology back in 1992, and remains involved with the firm as a non-executive director.
He was given Royal recognition in 2011 when The Queen presented him with an MBE for his services to North East Business, and he is now a specialist sector mentor for Digital City in Middlesbrough’s Boho.
James met Tony and Alan when they came to him for an hour-long advice session last year, and he saw enough potential in their scheme to pledge a substantial investment.
James said: “My skills are in finance and export, and as soon as Tony and Alan laid their plan out in front of me I was very impressed.
“We had a succession of meetings, and I’ve become heavily involved in the company and firmly believe in what this e-learning platform can do for businesses regardless of their size.
“I know from my time at Exwold that good quality training is extremely hard to deliver. The fact that companies can take this platform and build their own training modules into it is very appealing.
“It is a very unique product, and I can see the massive market potential in it. Training has moved away from Powerpoints, and Tony and Alan – with their vast experience in the sector – have grasped that and embraced it.”
As part of his involvement, 54-year-old James will act as a non-executive director and has no doubts his investment will pay dividends.
He added: “Any early stage business has got risks to it, but in this case that is mitigated by the volume of work which has already been done. Everything is in place to make this a successful commercial proposition.”
Picture captions: Alan Hammersley (wearing glasses) and Tony Abbott, directors at mylearnadfriend.co.uk
James Robson MBE, regional businessman who has invested in mylearnedfriend.co.uk