E-millionaire with a single-minded vision - The Oliver Vellacot Story
20 March 2001   

Sunday Times 25th February 2001

If the willingness to take a few risks is a vital ingredient for any budding entrepreneur, then Oliver Vellacot proved his mettle when he quit his job to concentrate on the development of digital video transmission in 1994.

At that time the technology was still evolving, and even the concept of high-speed phone lines was fairly novel, but Vellacott was convinced he had an idea worth developing.

He left his job as young product manager with Edinburgh-based VLSI Vision which produced low-cost analogue CCTV, and decided to go it alone.

Recognising the potential of digital transmission, Vellacott, who has a Phd in electrical engineering from Edinburgh University, founded IndigoVision at his home. With little money, he worked on with his idea, and six months later he had completed his design for his intelligent camera and his business plan.

"I left my job with nothing really except an idea. I survived on my credit cards for the first three months. Then I persuaded the bank to lend me £4,000. It was tough, but I think anyone starting up in business has to expect that.

"Start-ups are always difficult and you feel very exposed and alone. You just have to keep going at it, even when people question you. You have to have a huge amount of belief in yourself and your idea."

His first product, for converting analogue output of video cameras into a format which could be transmitted in digital format, won Indigo a prestigious Smart award from the DTI.

It also attracted much needed funding in the form of investment from 3i, and Vellacott was able to build a small team of engineers and salesmen. He maintains the creation of his senior team was crucial to future success.

"I am good at some things, but you need a balanced team. I am concentrating on the vision and strategy, but we need others who can tackle areas such as sales and marketing. It took longer than I expected to bring the team together, but it is absolutely essential to our success."

IndigoVision specialises in VIP technology - video over internet protocol - which allows high resolution TV-quality images to be broadcast in real-time on the net. Its VideoBridge product delivers video, voice and data over digital IP networks.

VideoBridge can give products video capabilities, and it can also allow existing video products to operate with other products. For example, mobile phones and cars can be video enabled - while CCTV cameras, webcams and set-top boxes made to inter-operate.

When he founded Indigo, the industry standards had not yet been developed, but Vellacott opted for IP - a move he describes as a "lucky break".

"There were other standards being developed at the time, but I had a hunch that IP would be the way ahead."

Today electronics giants such as Panasonic and Honeywell use Indigo technology in their products with VideoBridge being used in items such as digital video recorders, security systems and speed cameras.

The new light railway at JFK airport in New York has been fitted with the technology and even speed cameras on some UK roads use the system.

"People think video is just one thing, but it is CCTV, web camera, video conferencing, and much more," says Vellacott. "Our technology speaks all the different standards - there is nothing like it in the world, which is why customers love it."

A successful flotation last August is simply chapter two of the Indigo success story, according to Vellacott. The company was valued at about £100m at the time of the flotation and raised £35m. Despite the volatile technology market, Vellacott is pleased with progress.

"The flotation was actually quite easy for us. If you do all your homework beforehand, then things should go well. The dotcom market had crashed, but I think that helped us in a way. Investors still had money to fund good ideas but they were cautious about those which simply had a good domain name."

As a major individual shareholder, the flotation saw 34-year-old Vellacott join the ranks of the UK's latest e-millionaires - on paper at least - but he says money is not what drives him. He wants to grow Indigo into a major global player. The company recently doubled its workforce to more than 80 and with sales continuing to do well, Indigo expects to double its staff again in the coming 12 months.

In addition to its headquarters in Edinburgh, the company recently opened an office in Surrey, and has overseas sales and support operations in Boston, San Jose and Tokyo.

Last year the company agreed a major deal to license VideoBridge for an undisclosed sum to a Canadian video services company, VideoSpheres, based in Ottawa.

"I want to see Indigo as the world standard in video technology," says Vellacott. "There is no other company in the world which has this technology. Wherever there is a video product, I want Indigo to be in it. We have the potential to be the Intel of the video industry," he said

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