Spritz, a technology start-up backed by telecoms billionaire Denis O’Brien, is planning a $10 million (€7.7 million) fundraising as it prepares for the launch of smartwatches by some of the world’s biggest companies.
The Boston-headquartered technology firm has developed a way of streaming words quickly that make it easy to read on small devices like smartwatches.
The company has signed deals with the Financial Times, Thompson Reuters, Engadget, a technology website and Süddeutsche Zeitung, Germany's largest subscription national daily, to deliver their content on Samsung's smartwatch called the Galaxy Gear S, which will go on the market next month.
The technology giant presented its watch at the IFA technology show in Berlin this week, and Spritz plans to use its fresh funding to market and distribute its product on Samsung devices, as well as prepare for when Apple finally launches its version of a smart-watch.
Spritz co-founder Frank Waldman said: “We’ve been approached by different venture capital funds interested in investing us. We plan to go back to the market in the fall and will probably be seeking $10 million or more.”
Spritz has raised $4.5 million to date in two funding rounds backed by Mr O’Brien and other angel investors. Tom Hunersen, a former director of IBRC, is an investor and advisor.
The company employs 23 people in Boston, Salt Lake City and New York. “We hope to have an operation in Europe soon,” Mr Waldman said. It is in the process of opening an office in San Francisco, he added.
The company he said had developed an advertising-based business revenue model but, at the moment, its focus was on increasing user numbers by securing deals with digital content publishers. “We believe we can grow this business to a billion users,” Mr Waldman said.
Spritz does not disclose the breakdown of its ownership but Mr Waldman said Mr O’Brien and some other shareholders increased their stakes recently as part of an internal reshuffle.
Spritz worked by streaming individual words in a special display that made it “easier, more efficient and more effective” to read text, Mr Waldman said.
He said Spritz was recently used by the movie Lucy, starring Scarlett Johansson, as part of an online campaign and this raised awareness of its product.
