Headwater identifies unsolved, fundamentally important market problems. In areas we believe have significant market value we create new technology concepts, product architectures, product designs and prototypes to enable real world solutions that provide lifestyle benefits for consumers and new economies for businesses. For the best of these technologies we collaborate with world-class entrepreneurs in the field to develop a business plan, hire a management team, secure initial funding at launch and nurture the new company through its growth.
First, a proprietary problem identification and solution-value screening process is conducted to identify product innovations with the highest global value. Once an idea is a validated opportunity, resources are spent on core technology development and product design. We then work with the founding entrepreneurs on verifying the product plan and provide initial funding to start the company. We continue to support the company in several areas including helping raise traditional venture capital and subsequent funding.
Our technologies also hold value for market applications outside of the companies we help start. Headwater therefore works with established industrial and commercial partners to license and commercialize the technology in other forms.
Technology development for each HW portfolio is funded by a combination of entrepreneurs, venture capitalists, private equity investors and strategic industry partners. A typical funding cycle starts with a "portfolio seed funding" used to develop and screen candidate technologies, and one or two subsequent "portfolio development fundings" to perfect the most promising technologies, develop prototype products and services, and provide initial funding for new businesses that commercialize the technology in the portfolio.