The firm is projecting 10m sales from the product within three years. Colourlink, which was previously part of the Goodspeed Communications group, was bought by a team led by Damian Smith, the son of former Goodspeed chairman Leo Smith.

It used an advert in the Sunday Times last Sunday (24 February) to appeal for funding. The investment represents a 25% stake.

The firms Digital Wallpaper is a personalised wallcovering that it is targeting at homeowners, retailers, restaurants and bars. Colourlink said the high-margin luxury product would allow customers to design their own interiors.

The firm plans to launch the product in the US during the second quarter and suggested an AIM flotation or trade sale as eventual exit routes for investors.

Director Stuart Tyson, who was a member of the buyout team, declined to reveal further details of the funding drive or the Digital Wallpaper printing process.Weve come up with our own way of doing something, he said. A lot of companies have copied us but no one has got near it.

But he said he hoped to reveal more about the firms plans in the near future. Colourlink started developing Digital Wallpaper five years ago. Clients include Channel 5, Hagen-Dazs, Harrods and John Lewis.

Colourlink also has an agreement with FlipDesigns through which it can offer 82 images as either Digital Wallpaper or limited edition fine art prints. Digital Wallpaper costs from 85 per m2, while the fine art prints are available from 150 per print.

Colourlink also offers large-format printing services to the exhibitions, leisure and retail markets.

Story by Gordon Carson