Powerhouse invests in ground-breaking intellectual property generated through scientific and technological research.
We take a systematic approach to developing outstanding businesses that compete on a national and international scale.
Through our close relationships with universities we are able to access and understand the research presented to us. Our investment team works closely with our newly-formed portfolio companies to shape them from the inside out.
The Business Model to Achieve this relies on Three Core Components:
- Access to University or Crown Research Institute sourced, potentially disruptive, commercialisable intellectual property;
- A rigorous and systematic approach to opportunity selection, shaping and business building; and
- Access to extensive sources of capital to finance businesses as they develop and mature into profitable companies.
Powerhouse has taken steps over the past year to advance each of these vital mechanisms that drive our success. Unrivalled access to intellectual property In addition to the ongoing development of our New Zealand activities, this year our expansion progressed into Australia. We have already begun screening technology from some of Australia’s leading universities and have invested in our first spinout created with the University of South Australia.
Our Knowledge and Connections
Over many years Powerhouse has refined its methodology for the systematic commercialisation of intellectual property. Our approach involves identifying talented people that have the capability and motivation to transform world-class research into globally competitive businesses.
In the early stages, it is often our own team that provides operational support to help newly-formed companies develop and validate the commercial opportunity presented. We insist on developing the low-risk, high-return business plans so essential for the pathway to success.
Powerhouse works closely with universities in Australasia to form, or assist in the formation of, spin-out companies based on world-leading innovation. Powerhouse successfully manages the process of identifying intellectual property with commercial potential, the establishment of commercialisation vehicles and subsequent generation of shareholder value.
Our Links to Capital
Powerhouse has long recognised the importance of access to capital from a wide variety of sources for developing businesses. This past year has seen a significant strengthening of our access to third party capital, particularly with venture capital firms and angel networks in Australia. Co-investment into the portfolio totalled $9.3 million in the year to 30 June 2017. Our own capital for the development of the portfolio was increased during the year as a result of successful capital-raising activities, including the ASX Initial Public Offering, which raised in excess of $A10m. A significant proportion of the funds raised were employed in our most promising portfolio companies.
Powerhouse is fortunate to have a team of highly skilled technology development experts, ably supported by a disciplined and capable corporate unit. Combined they represent the core of a growing business — fit for purpose and enthusiastic about the world-changing work that they perform. It is a pleasure to support and lead them.