Growing software firm reaches customers nationwide

IWT was founded nearly five years ago after Way2Bid folded in 2002.

CEO Darren Henderson, Chief Operating Officer John Alexander and two software developers, Eric Burgess and Alex Schafer, along with Ted Tabor, a member of Ion Wave’s board of directors, are the majority shareholders, controlling approximately 80 percent of the company.

“We believed in something that a lot of people had given up on after Way2Bid shut down,” Henderson said.

That belief, however, required sacrifices. Alexander said in the beginning, IWT’s founders worked out of their houses, and chose not to draw salaries for a little more than a year.

Those sacrifices in combination with the $200,000 they raised from a group of 30 investors helped to get IWT off the ground, Alexander said. Several of those investors were originally involved with Way2Bid.

“They decided to stay with us and continue on,” he said. “One or two (investors) were new, and most were small.”

Since its inception, IWT’s revenues have at least doubled each year, reaching about $1 million in 2006. As the company has grown, Alexander said, some investors have chosen to cash out.

Steve MacKinney is a current IWT shareholder who decided to invest in the company in early 2003 because he was impressed with the people there.

“They seemed like they had an ethical attitude toward business,” he said. “They were intelligent people that knew (their) niche, and their products had a lot of potential.”

Products and services

IWT offers two product lines, an online procurement program and a special education management program. A nationwide customer base includes city governments, public utilities, K-12 schools and higher education.

Ion Wave’s bidding software enables institutions to rapidly negotiate purchasing arrangements and pricing structures with vendors online, rather than the traditional method through the mail.

The Mountain Grove R-3 School District has been using IWT’s products for about two years, with positive results.

“The people at Ion Wave have been very accommodating, and their support for their product is wonderful,” said district Special Programs Director Reta Tyrell. “The user-friendly program has worked consistently and has helped to streamline processes.”

In March 2004, IWT formed a partnership with Raleigh, N.C.-based SciQuest Inc. and has since benefited from increased sales, Henderson said. “They do a lot for us. It’s a wonderful relationship,” he said, noting that SciQuest added 15 universities to IWT’s customer list.

Going for growth

Future plans at IWT include continued customer base expansion and the addition of new modules to the current product lines.

Alexander and Henderson expect revenue growth of 20 percent to 50 percent on the conservative end.

Since opening, IWT has added an average of two to three employees to its staff each year. Four new employees already have been hired in 2007, bringing the company to 11 full-time employees (see box on page 25).

In 2005, the company relocated to its 5,000-square-foot facility at 3045 S. Scenic, Ste. 104, in order to acquire more office space.

“We moved with the intent that we’d grow into it over time. We’re not at capacity yet,” Alexander said, noting that it could happen in the next three to four years.