Digital consultancy Appnovation gets $11.6 million equity infusion

01 October 2020 2 min. read
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Appnovation, a Vancouver-based digital consulting firm, has received $11.6 million in follow-on equity financing from Canadian Business Growth Fund (CBGF), Business Growth Fund (BGF), and Export Development Canada (EDC).

CBGF and BGF in July 2019 provided $15 million in equity financing to Appnovation. CBGF and BGF are private equity funds created by leading financial institutions in Canada and the UK, respectively.

Since that investment, the consultancy has grown its team by 30%, including growing a new Toronto office to more than 50 people. The firm – which delivers offerings in digital strategy, user experience & design, development & engineering, data analytics & insights, corporate agility, and managed services – also managed to achieve revenue growth despite the global pandemic.

A recent KPMG survey found that companies spent an additional $15 billion on technology per week during the pandemic, with security, customer experience, and infrastructure and cloud being the top areas for added spending.

The firm’s growth trajectory and its position in an in-demand market attracted a second round of investment.

Arnold Leung, Founder and CEO, Appnovation

The new financing round also included EDC, a crown corporation that helps Canadian companies succeed in international markets. EDC is supporting Appnovation through its Investment Matching Program, wherein the organization provides capital investment and expertise to Canadian and international partners.

Appnovation will use the $11.6 million to continue scaling its team in strategic global markets, as well as targeting potential acquisitions. The company today has more than 350 employees across 15 offices in North America, Europe, and Asia-Pacific, including four locations in Canada.

“Over the past year, we’ve made strategic hires, deepened capabilities, and accelerated international growth with the help of an initial round of investment funding. We will continue that global growth trajectory and look at expanding our footprint in strategic markets, like Asia Pacific, with this new injection of funding,” said Arnold Leung, founder and CEO of Appnovation. “CBGF, EDC, and BGF are the ideal partners because they’re invested in our long-term success and share our vision for ambitious growth.”

George Rossolatos, CEO of CBGF, said Appnovation has “made tremendous progress” since the initial investment last year, and that there are “excellent opportunities in front of the company.”

BGF investor Greg Norman said Appnovation is “exactly the type of growth economy business that BGF seeks to support.”

Carl Burlock, EVP and chief business officer at EDC, added, “More than ever, digital sales strategies are key to succeeding in global business. Appnovation’s digital IT services will help companies enhance their online presence and remain competitive amid these challenging economic times.”