The former chief executive of AIB, Tom Mulcahy, has spent €500,000 on a 7 per cent stake in the Irish financial spread betting company Delta Index.
A spokesman for the company said Mr Mulcahy will use his banking contacts in Europe to assist the company's plans for expansion.
He said Mr Mulcahy was "very supportive of the company in relation to his own contacts but has no plans to sit on the board at this stage".
A new €1 million fundraising round has valued the company at €7 million, about double the value the company was given a year ago, the spokesman said.
The company expects to produce its first profit this year and is close to producing profits on a month-by-month basis, he said.
The company's founders, finance director Conor O'Neill and operations director Michael O'Shea, now each owns 22 per cent of Delta.
The managing director, former head of treasury at AIB, Dermot O'Donoghue, has an 11 per cent stake.
The firm raised €200,000 by selling 14,994 shares at €13.34 each in May, according to filings in the companies office.
An allotment in October 2005, which included Mr Mulcahy's purchase, raised a further €925,000, selling 60,099 shares at €15.39 each.
The other 11 investors who participated in this fundraising took out smaller stakes and included Mr O'Donoghue, who spent €125,000. He also participated in the May fundraising, when he invested €100,000.
The company's risk director, former senior manager of treasury at Anglo Irish Bank, Paul Kenny, has 7 per cent and sales and marketing director, Chris Curran, formerly an adviser to Bank of Ireland Private Banking, has 5 per cent.
Since it was set up in 2002, the company has raised €2.3 million. Early investors included Dolmen Securities.
Mr O'Donoghue said the latest fundraising round would be used to support sales and marketing and an upgrade in Delta's technology and product offerings. "We could have raised more capital but we don't need it at the moment." He said it was the company's medium term goal to grow its model internationally "and Tom retains important global financial contacts which will help in this regard.
"Tom sees the potential in Delta Index as financial spread betting is only beginning to take off in Ireland and has the ability to deliver sophisticated instruments to the retail investor market in a manner and at a price that traditional stockbrokers or financial institutions are unable to match."
The latest annual report in the Companies Registration Office, for the year to end December 2004, shows that Delta made a loss of €435,565. A spokesman said it is anticipated that a profit will be made in 2006.
Turnover in the year to end December 2004 was €478,580, compared to €82,110 in the 15 months to end December 2003. Accumulated losses at the end of 2004 were €946,046.
