Web stamp collecting could become big business for Newcastle company

Jan 27 2010 by Iain Laing, The Journal

The software has taken Mr Shepherd, a former engineer turned businessman, and colleagues at Newcastle University including Dr Peter Andrass three years to develop. Customers will pay a subscription or on a pay-as-they-go basis to use the service.

Data complexity is working closely with Corbitts, the Newcastle dealer, auctioneer and valuer of postage stamps, to market test the service and plans to run a trial early in 2010 (OldStampPrices.com).

Jon Bradford, fund manager for the One North East-backed Design and Creative Fund, said: “The beauty of what Data Complexity is doing is that they can objectively place a value on something like a stamp that has so many subjective characteristics.

“This platform could easily be transferred to other collectables and sectors like the second-hand car market.

“From an investor’s point of view it’s a great deal as the concept and technology are proved. The company is also about to trial this project with a local stamp dealer so has access to a ready made pool of customers.”

Data Complexity will initially focus on the stamp collecting market but has future plans to target customers collecting things such as coins and art.

Mr Shepherd added: “Collectors are traditionally middle-aged men with high disposable incomes. Stamp collecting is a multi-billion pound business every year so we just need to convert of small percentage to make money.

“From this point of view, it’s a good time to launch. People have invested more in equities in recent years but given what’s happening in these markets more will be looking at alternative investments like stamps.”

The Design and Creative Fund was set up with funding from One North East to support the development of the region’s design and creative sector. It has so far invested £1.8m in exciting businesses with investments of up to £125,000.