John Gallagher
John Gallagher was Footfall’s founder and CEO. The company was initially set up following the development of technology for tracking the movements of pedestrians in retail environments. The company’s success is due to the vision of the management team, SPARK and other investors early on in the evolution of the company, that stronger revenues would be derived from the sale of the camera units as well as the supply of easily interpretable information based on the data.
Footfall progressed to establish customer counting as a key performance indicator for retail and leisure outlets. The company launched the UK Footfall Index which became regarded as the industry standard benchmark for measuring shopper visits across the UK, in addition to the Footfall UK Regional Index, and numerous International country indices. Footfall built up a strong global brand with 40% of its business coming from outside the UK.
The company was established as the market leader in customer counting technology and retail information services, and was sold to Experian, the information solutions company, in January 2006.
On the relationship......
“In 1999 I looked at about five different VCs but I chose SPARK as it had the right feel. Like my business partner Brian Barnes and I, the SPARK team were entrepreneurs so they knew what we were going through and the challenges we would face. It was important for the relationship to add value and support in addition to the investment.
We also wanted a collective of VCs, which included Quester, to provide more flexibility in case of changing market conditions.”
On funding.....
“SPARK led two rounds of funding with Quester and their support over five years was instrumental in the eventual sale of our business to Experian in 2005.
Spark helped me to learn about the value of money. In our first fund-raising in 2000, money was very cheap but by 2003 the situation had changed and money was very expensive. Our business plans had to change but we felt safe in the knowledge that our investors knew what they were doing and were realistic and prepared for the difficulties we may face ahead.”
On adding value.....
“SPARK were major contributors to reshaping Footfall’s strategy, assisting in the company’s transition from a hardware vendor to a provider of business intelligence to retailers.
When managing a company, it is easy to become too wrapped up in it, so to have a mentor that knows the business and can see the bigger picture, offering direction and advice is invaluable. As SPARK is involved in many other businesses which are complementary to Footfall, they were able to provide the right contacts, particularly when we were expanding.
When it came to the exit, SPARK used only the best advisers to ensure we got the best deal.”
On raising funds.....
“My advice is to have clear objectives and know what you want when looking for investment. Also look over and above the money at how experienced the management are, and talk to the CEOs of other companies which have been funded. The whole experience of building a company is exciting but it can also very difficult so you need a well prepared and experienced team behind you.”