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Powerhouse revalues portfolio pre-ASX move

NZN 19/07/2016 Fiona Rotherham

Technology incubator Powerhouse Ventures has recorded a $7.7 million increase in the fair value of its investments in early stage start-ups in just six months as it readies itself for a listing on the Australian Securities Exchange this year.

Christchurch-based Powerhouse takes technology in New Zealand's universities and research institutes to market through a portfolio of start-ups.

It is yet to make any divestments since it started investing in 2010, though it has written off two failed ventures.

The revaluation to $20.9 million has been helped by a flurry of capital-raising by some of its portfolio companies, a couple of which - Hydroworks and CropLogic - are planning initial public offerings themselves on the ASX.

The incubator can lift the value of its stake in various start-ups, which in turn lifts its internal rate of return, under fair valuation methodologies to the price of each company's last capital raising, or the next capital raising providing it happens within that calendar year.

Powerhouse is one of three technology incubators which accesses operational funding, pre-incubation grants, and repayable loans for start-ups they co-fund through government innovation funding agency Callaghan Innovation.

As a precursor to a planned $A20 million ($NZ21.49 million) listing in the next two months on the ASX, the incubator sought to raise $15 million in capital.

Managing director Stephen Hampson said it had secured around a third of that, including $1.76m raised in a February equity crowdfunding offer.

"We have enough to get through an IPO so we're going straight to that," he said.

(BusinessDesk receives assistance from Callaghan Innovation to cover the commercialisation of innovation).

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