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What is Auctomatic?

Auctomatic is a website that serves as a tool to help businesses to sell their products online. The idea developed from our first website, student online store boso.com when businesses would approach us to sell. With Auctomatic, the original idea was to target users of eBay, but we intend to expand its use to Amazon and other online retailers.

How did you secure funding?

Originally, we got backing from business angels in the UK, but our main investor is a US seed fund, Y Combination, which has been giving us ongoing support with boso.com and Auctomatic. We found it incredibly hard to get investment in the UK, so we moved to Silicon Valley where the attitude was a lot more welcoming.

Can you give us an example?

The mentality in Silicone Valley is more about the people behind the product, if you meet an investor that likes you and has faith in your capabilities, they will back you, not your product. As an investee we receive investment during a specified time period, no matter what project we’re working on.

Why have you sold a stake in the company?

Well, it seemed like a good idea due to the fact myself and the founders had all quit our jobs and had racked up some personal debt. In addition, the acquirer, Live Current Media, complements our business as their clients are sites like ours. We retained a 75 per cent stake, while raising $2 million (£1 million) in cash and $3 million (£1.5 million) worth of shares in the new company. We’re hoping to see it grow and achieve its full potential.

What is your advice to entrepreneurs looking for investment or to sell?

Get a good tax adviser. The savings we made were about ten times the cost of hiring a specialist.

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