Irish

Thursday 21 August 2014

Dragon's firm posts losses of €5.2m but still 'aiming for stars'

Gordon Deegan

Published 21/02/2013 | 04:00

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A company owned by RTE 'Dragon' Sean O'Sullivan is in the red, according to new accounts.

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Irish-American Mr O'Sullivan – one of the entrepreneurs on 'Dragon's Den' –saw losses mount to €5.2m at his firm Avego in 2011.

The entrepreneur – credited with inventing the term 'cloud computing' – said he was not unduly worried by the losses because global revenues at Avego increased by over 50pc in Europe and the US last year.

He revealed that Avego sold its interest in the Chinese market to a newly established Chinese company "as China wasn't generating significant revenues for us". Avego – its Irish HQ in Cork city employs 39 staff – provides information and management systems for the passenger transportation sector.

"While we are hugely concerned with continuous improvement and getting a large number of happy users, we're not overly concerned about temporary losses," Mr O'Sullivan said yesterday.

"Our goal is to change the world's transportation patterns, improving the quality of life of millions of people.

"It's something that is worth investing in, even if we run with some losses for a few more years."

Avego has secured a financial commitment of $20m (€15m) from Mr O'Sullivan's investment arm, SOS Ventures.

"Avego is not a traditional start-up. We are aiming for the stars and, consequently, we have prepared for this by being funded like the Apollo programme," Mr O'Sullivan said.

Irish Independent

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