We recognise that cleantech is a niche market sector in New Zealand, but one that is globally emerging rapidly, with substantial economic growth in many sectors. To be competitive, New Zealand needs to understand and work in global markets that need the type of cleantech applications we produce.
Cleantech might not save humanity from the perils of industrialisation, but it does have an important role in improving global sustainability by lowering the risk of climate change, limiting pollution, decreasing waste, improving efficiency, and ultimately, making us happier and healthier.
But just because cleantech is ‘green’ does not mean that there are special commercial rules – there are no exceptions and no free passes – cleantech businesses need to stack up just the same as every other business. Cleantech companies need a profit motive, they need to be commercially sustainable, innovative and growth focused.
As commercial experts in the environment sector, the important and different perspective we bring, is an understanding of the relative market opportunity for specific cleantech applications. We understand the appetite to grow those applications, and we also acknowledge that often the highly technical individuals who found these businesses don’t necessarily have the full suite of commercial skills, or the capital, to make the business a success. For these reasons we see ourselves not only as investors, but also as business partners.
We call this capital + capability.
We look for a combination of the following:
- Market validation of product or service
- Existing revenue of $250k – $20m
- Dense IP
- High growth aspirations
- Under-performing commercial teams or cashflow distress
- Export growth and cross-border value transfer
Here are some other important principles:
Mega-trends don’t pay the rent. The role of cleantech companies is to solve very real-world problems, but in a way that is commercially profitable. Cleantech companies need to be subjected to the same rigorous commercial tests as any other business.
We look for businesses that have a twinkle in their eye – innovation, a market niche, first mover advantage, export market demand.
We look for investments where we think we can make a disproportionate difference in performance.
We work with pre-revenue organisations, but only if they have very strong intellectual property and some form of market validation.
Greenhouse Capital is a Limited Partnership. In order to match our investors with suitable opportunities, we create special vehicles for each investment.
We have a wide range of investment opportunities.
If you are a commercial investor interested in cleantech, please get in touch.
If you have a cleantech company that fits our investment criteria, please get in touch or try our investment readiness survey.