CEE-focused venture capital firm Enterprise Investors has bought a €5.5m stake in BLStream, a software company specialising in mobile technologies.
The deal, which was financed through the firm’s Enterprise Venture Fund I vehicle, will give EVF a 35 per cent stake in the company.
BLStream will use the funding to finance potential acquisitions and develop its proprietary software products, it said.
BLStream develops, produces and maintains software for mobile devices such as smartphones and tablets and develops gaming content for mobile devices and gaming consoles.
Customers can use mobile devices for remote work, connecting to systems, services and data on the internet or at the company’s own servers.
Founded in 1999, BLStream is based in Finland but almost all of the development work has been done by Polish IT specialists. Its applications and games are currently running in several hundred million portable devices globally.
The company has been a long-term software development partner for global communication, consumer and entertainment brands such as Intel, Nokia, Play, and BBC as well as almost all of the major players in the gaming software market.
As a result of a record increase in mobile business software, BLStream’s consolidated revenues reached €10.5m last year, which represents 50 per cent growth over the previous year. The company employs around 250 IT specialists.
“The launch of smartphones, and especially tablets, has resulted in a very dynamic increase in the demand for mobile software,” Tomasz Piętka, the vice president of EI who led the investment, said in a statement.
“People want to use mobile devices not only for fun and socialising, but also for work and other purposes. This trend looks set to continue, which I think will help the company triple the scale of its operations over the next four years.”
Enterprise Investors is one of the largest private equity and venture capital firms in Poland and Central and Eastern Europe. Active since 1990, the firm manages funds with capital exceeding €1.7bn.
These funds have invested €1.5bn in 126 companies across a range of sectors and exited 94 companies with total proceeds of €1.7bn.
Enterprise Venture Fund I is the most recent fund in the EI group. Raised in 2008 with total capital of €100m, it is the largest fund of its type in Poland and the CEE region.
Investments typically range from €1m to €6m per project, but can exceed that amount if an investment is deemed attractive enough. BLStream is EVF’s eleventh investment and the fourth technology company in its portfolio.
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