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We partner with world-class universities at the forefront of scientific research

Business Model

Focus

A few-to-more approach rather than many-to-few

  • 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

Application

Determine the product-market match using a job-to-be-done analysis

  • 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

Value

A lean approach to venture development

  • 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

Leadership and team

Matching world-class management to world-class science

  • 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

Learn and adapt

Invest a little, learn a lot

  • 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

Profits before growth

Impatient for profits, patient for growth

  • 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
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