Toronto‑based Filemobile (now Newzulu Platform), founded in 2006 to develop Software as a Service (SaaS) applications, had established a firm foothold in a highly competitive sector. The company provides a system that enables customers, such as media outlets and global brands, to upload, curate, moderate and publish user‑generated content (videos and photos) from contributors via mobile and web.
As its competitors acquired American companies to extend their reach, Filemobile was determined to protect and expand its market share in the U.S. and beyond. Aggressive measures were needed, but lenders could provide only limited financing. “Getting the money for projects can be challenging for Canadian SaaS companies,” says Marc Milgrom, formerly Filemobile’s President and CEO, now Newzulu’s Global Chief Operating Officer.
The company turned to BDC. BDC took into account Filemobile’s strong management team, previous history of successful ventures, as well as its strong financials and potential for growth. “BDC totally understood our business model,” says Milgrom. An Xpansion Loan was provided, with flexible terms, such as an initial principal postponement and the ability to prepay without a penalty.
“BDC played an important role in helping Filemobile build our business at a key point in time,” said Steve Hulford, one of the founders of Filemobile and now the Chief Technology Evangelist at Newzulu. Within just two years, Filemobile was noticed‑and acquired‑by an Australian company, Newzulu Limited. The global company adopted Filemobile technology and made the Toronto team the main development team, with Filemobile management taking on executive roles.
“Thanks to BDC’s financial support and sound advice, our international expansion has exceeded our expectations,” says Milgrom.