Taking the uncertainty out of equity valuation
September 19, 2019
Buy, sell, hold… figuring out the most profitable course of action in the stock market can be complicated. But the new future could be here with Miramichi-based Patchell Brook Equity Analytics..
Patchell Brook’s StockCalc software takes the uncertainty out of equity valuation for publicly traded companies. Impressively, the software can produce 8,000 valuation reports each night, as well as 800 ETF reports and 146 industry reports each week. Since joining our portfolio in 2017, where we invested $200,000, the company has grown their revenue substantially. They’ve also built a promising pipeline of customers, and completed some additional product development that will help them to scale-up the company more affordably.
We’re feeling really good about Patchell Brook’s growth potential. We’re making our second investment into the company of $150K, which is part of an overall $360K round that also includes funding from the Miramichi Technology Fund, Technology Venture Corporation, and a number of angel investors.
The latest “star” of the StockCalc platform is undeniably its new API, which will allow users to create more valuable reports and programs.
“The big thing about this investment that intrigued us is that they’ve developed an API which is attracting large customers. With the new API, I see opportunities to begin embedding that software in other FinTech tools,” says Daniel Hoyles, one of our Investment Analysts. “They also have a strong early adopter customer relationship with the Globe and Mail, and they just keep continuing to build interest from other large customers.”
Patchell Brook is currently the only company in our portfolio based in Miramichi. We see the company’s growth and our investment as a big win not just for their team, but for their community as well as the rest of the province. The company’s success shows that it’s possible to build a flourishing business in Miramichi – success that could potentially pave the way for future entrepreneurs from the area. In addition, with Patchell Brook part of our expanding roster of FinTech companies, their growth represents an opportunity to cultivate more local expertise in the sector.
“We do have other FinTech companies in our portfolio, but this was definitely one of the first ones we invested in and now we’re starting to see the growth we expected when we made our initial investment in the company in 2017,” says Daniel.
We have a pretty solid working relationship with Patchell Brook – they’ve always been very open with us about how business is going. Every month, they send updates about their company’s growth, as well as the challenges they’re facing as they pursue that growth. While they’ve been focused on scaling up, we’ve looked to help them wherever we can, as we do with all our investments. Daniel (who leads our dealings with Patchell Brook) also attends all the company’s Board meetings as an observer.
“It’s all about the company having momentum now, and how do we keep building that and helping it to grow faster,” says Daniel.
Our latest $150K investment brings our total investment in the company to $350K.
“Over the next year, we’re looking forward to continuing to grow our customer database and improving our platform to make it even more valuable for users,” says Brian Donovan, Patchell Brook’s president. “We’re thankful to NBIF for their ongoing support and guidance.”