Dubber Call Recording Lands New Investment
Alex Waislitz is a man who's made a big name for himself, a name sufficient to be worth $1.13 billion. Thanks to timely and clever investments like stakes in Liquefied Natural Gas and Mesoblast, Waislitz managed to make his way to a level of wealth few will reach. So what's got him interested enough in a call recording operation to put substantial investment into it?
The investment in question, part of a $6.3 million capital raise on the company's part, went into Dubber, a comparatively small operation that has its own call recording solution. Waislitz bought into the company, reports note, via his Thorney Investments operation, and though it's not clear just how much of Dubber he picked up, reports call it a “significant” share.
As for what drew Waislitz's attentions, Waislitz himself noted as much via a statement, saying, “We are very excited by the prospects for the Dubber call recording solution and have been impressed by how seamlessly the technology has integrated into the networks of telecommunications providers both internationally and domestically. This capital raising provides the ability for Dubber to expand and execute its business plan to include the US where demand appears very encouraging.”
The new capital influx will mainly go to that U.S. expansion effort noted previously, and helps assuage some concerns the company had about cash flow. The problem was that Dubber seemed to be a bit of a victim of its own success; a show at the BroadSoft conference in Texas back in November made it clear that U.S. demand for call recording tools was hot, and thus, required a faster push than expected to try and land a cut of that take.
Though Dubber has a point here, it may be that the point came even too late to realize the best value. Indeed, demand for call recording options in the United States right now is positively blistering, as there are not only firms that require such tools by law, but also firms that want to bring in such tools as a means to improve internal operations and the like. Call recording tools serve a lot of purposes, and when one tool can provide value on several fronts, it's not out of line to see brisk demand for such tools. However, that demand hasn't been lost on the competitors in the field, and already significant pushes have been made to land that business elsewhere.
Dubber stepped up a timetable to address market conditions, but it may well have reacted too slowly, even with this stepping up to get the fullest share. Only time will tell just how well it's done, but it's a safe bet that Waislitz et al have made a pretty safe bet in their own right.
Edited by Alicia Young