Powerhouse brings world-class technology that exists in New Zealand’s universities and research institutes to market through a portfolio of start-ups.
Powerhouse works with research intensive organisations to create start-up companies. Through capital investment, Powerhouse holds significant interest in the companies created. Over time, Powerhouse invests further capital and provides hands-on support with the intention of growing the value of these stakes.
Through the application of this model, Powerhouse has an established and expanding portfolio of science and engineering based companies, with some approaching exit.
This Snowball Effect public offer is based on the Powerhouse Information Memorandum issued on the 24th November 2015 (IM). This document can be downloaded from the Offer Tab.
Any material updates since that date are, and will be, disclosed in the Updates Tab.
 Historical internal rate of return as at 30 June 2015 - independently recalculated by Ernst & Young to the extent of Agreed Upon Procedures. See Glossary in the IM for further details.
Investments are focused on our key areas; environmental and agritech, engineering and cleantech, healthcare and medical devices and information and communication technologies.
A recent independent valuation by Edison Investment Research Limited (Edison) valued the investment portfolio at $17.2 million against a carrying value of $12.15 million.
Powerhouse was established to commercialise scientific innovation from Canterbury’s universities and research intensive institutions. The company pioneered the concept of a long term partnership model with universities and has arrangements covering a number of New Zealand’s leading universities and research intensive organisations. The close interaction with universities provides a strong pipeline of investment opportunities and is central to the Powerhouse business model.
The model is based on similar successful models in Europe and is designed to build a robust portfolio of successful post-seed companies, ultimately realising value from investments through the creation of exit opportunities by way of trade sales, initial public offerings or the creation of profitable businesses paying dividends to shareholders.
Powerhouse has expanded to become a nationwide organisation with a current portfolio of 18 companies.
Powerhouse’s growth strategy includes expansion to Australia and a planned listing on the NZX Main Board and the ASX.
Powerhouse’s core KPI is to maintain a sustained investment portfolio internal rate of return above 30% per annum.
Powerhouse is seeking to raise capital to:
This offer is being made to both "wholesale" and "retail" investors.
The terms of the offer, including the class of shares on offer and price per Share, are the same for both wholesale and retail investors. However the offer is being made pursuant to different regulatory frameworks, and certain information does not apply in each case.
The offer to retail investors is being made pursuant to Snowball Effect's market services licence granted by FMA, and the equity crowdfunding regulations contained in the Financial Markets Conduct Act 2013 and corresponding Regulations.
Through this offer page, retail investors can access the Information Memorandum dated 24 November 2015. The Information Memorandum was prepared for an offer to wholesale investors (defined as “Eligible Investors" in the Information Memorandum). The eligibility criteria in the Information Memorandum and the Important Dates on page 11 of the Information Memorandum do not apply to retail investors. The dates relevant to retail investors are set out in the Offer tab.
Below is the prescribed warning statement which must accompany offers made to retail investors through a licensed equity crowdfunding provider.
Warning statement about crowd funding:
Equity crowd funding is risky. Issuers using Snowball Effect’s facility include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks. You may lose your entire investment, and must be in a position to bear this risk without undue hardship. New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.
The offer to wholesale investors is not being made pursuant to Snowball Effect's market services licence granted by FMA, and the equity crowdfunding regulations contained in the Financial Markets Conduct Act 2013 and corresponding Regulations.
The Powerhouse Board collectively possesses considerable investment, commercial and financial experience, with particular expertise in the development of research-generated innovation.
The Board is supported by an experienced management team that has the primary responsibility for sourcing, shaping and building new, early-stage opportunities.
This team has specialist expertise that spans Powerhouse’s four main investment sectors and provides a direct interface between Powerhouse and each of New Zealand’s eight universities. In addition, Powerhouse leverages its extensive network of highly-experienced individuals with relevant financial, technical and industry- sector expertise to build and strengthen the boards of Portfolio Companies.
Powerhouse employs 19 staff. It has a corporate office in Christchurch and additional regional offices in Dunedin, Christchurch, and Wellington.
It's crucial for you to understand the characteristics and risks of this investment opportunity. New Zealand law normally requires people who offer financial products to provide in-depth information to investors before they invest. The usual rules do not apply to offers by companies through Snowball Effect. As a result, you may not be given all the information you need to make an informed decision. Investing is risky. Some of the key risks include loss of capital, illiquidity, lack of returns, dilution, loss of key people and customers, and lack of control. You should only invest money that you can afford to lose.