Business Model

Focus

A limited number of new investments made each year (5-10), ensures appropriate focus and resource is applied to each venture
A balanced portfolio of investments
On-going research contracts between the portfolio company and the university for continued technical development over the long term

Powerhouse incorporates the company and determines the first market and the initial customer's problem to solve
We look for forgiving customers in the beachhead market; customers where high performance is not necessary and where the competition is weak
Clear road-map to large international markets

Administration services provided by Powerhouse to portfolio companies keep capital requirements low during early stages
A systematic approach to investment focused on reducing areas of highest risk first
Early revenues though paid customer trials or consulting services

As a rule, Powerhouse recruits the management team to lead each newly incorporated venture. The initial team focuses on technical validation and customer trials. As the company validates the value proposition and moves into the growth phase, changes are made to the management and board
It takes high-quality, motivated management teams to build a successful business. We support our companies with recruitment through access to our networks of executive and non-executive talent

The performance of new technologies when transferring from the lab to the customer is highly uncertain. We adopt an approach with investment to validate the technical performance through customer trials
Early trials provide valuable insight into the needs of the customer often resulting in an adaptation to the business plan

Following confirmation of a compelling value proposition, Powerhouse works alongside the management team to develop a model for a highly profitable business
Further capital investment is used to grow the business and enable it to compete internationally