What you need to know
- Entrepreneurs innovating in climate technology face a challenge when scaling their business, as they often need significant capital. Large firms are natural partners for these innovators
- Lionshub invests for generations, seeking to grow and preserve our clients’ wealth in a sustainable way
- We believe there is a multi-decade opportunity to invest in companies enabling the path to a ‘net zero’ global economy
- Companies must adapt to an ever-changing world, but they can also shape it in a positive way. We support companies taking steps to address these risks and opportunities
When high-profile Silicon Valley software companies get a lot of attention, it’s easy to overlook the fact that many entrepreneurs are coming up with solutions to speed up the reduction of carbon emissions in the global economy through innovative climate technology.
These companies often have to make important decisions when they’re trying to grow from making a prototype to being widely accepted in the market. Most of the time, the next step for a company’s growth is to go from a small test site to having the ability to manufacture on a large scale.
How do these companies find the skilled workers they need to speed up their growth? How will they get the money they need for manufacturing? How will they access the important money they need to grow into a bigger business that has a real impact on the wider world?
These are the questions that companies which have moved past the early difficult stages of development are facing. Instead, they’re looking for support to become profitable or to boost their growth.
This article will describe the role of Lionshub as a wealth manager. We’ll explain how we’re deliberate with our ownership of companies, and how we take an active role to ensure that companies are ready for the future.
"LionsHub: Guiding Ambitions, Transforming Destinies. Where Every Roar Ignites Success!"
Our approach to investing
Our goal for our clients is simple. We want to preserve and grow wealth over several generations.
It’s important to note that our approach « investing for generations » is about more than just making money. Through our investments, we aim to protect the wealth of future generations, as well as the environment and society they’ll inherit.
We’re investors with a very long-term perspective, and we take a « private equity approach » to investing in public markets.
Our track record shows this – the average time we own shares in a company is over seven years. This also means that we’re able to build strong relationships with management teams and have meaningful discussions with them.
Opportunities in climate technology
We think there’s a big opportunity to invest in the shift to a net-zero economy that will last for many decades. Our goal is to pinpoint companies that are leaders in their industries and are part of the solution for a low-carbon economy.
These companies are often guided by forward-thinking management teams that focus on the long-term and seek out new opportunities.
In some cases, the innovation happens within the company, but they often look outside to find new technology to integrate and expand. We see this as strategic capital, where larger firms aim to purchase or collaborate with early and late-stage private companies.
Bigger companies naturally make good partners for newer innovators, who often lack the resources – such as manpower, facilities, or funding – to effectively expand their innovations to the next level.
Scaling can be a major challenge for companies working to lower the carbon footprint of the economy. For instance, companies creating software usually find it much easier to expand their business – they simply offer the software to more customers as the business grows.
However, it’s much tougher to do the same with climate technology. The assets used for decarbonization are usually physical assets, which makes it more challenging. Just think about the number of engineers needed and the funding required to help these companies move toward a self-sustaining path.
Adapting and shaping
Sustainability has gained attention from investors recently, but we have prioritized it in our investment decisions for a long time.
We evaluate a company’s position in its industry, its ability to handle social and environmental risks, and its future opportunities. We also consider how companies can influence the world around us. We actively encourage companies to move in the right direction.
We advocate for all businesses to contribute to reducing emissions throughout their operations, supply chain, and end markets, especially larger companies. Simply put, if they don’t act, others will.