Acidophil is committed to forming businesses both in the United States (Arginetix, Agrimetis and ZuvaChem) and the United Kingdom (Population Genetics Technologies). The story behind every business created by Acidophil is unique. However, their common elements are easily traceable: an unmet market need, a technological means of meeting that need, and a financeable route to turning plans into useful solutions. Early-stage Acidophil start-ups develop a plan of how to use technology to create a product that addresses a certain market need. Acidophil’s contribution to the successful acquisition of the necessary funding enables its fledgling start-ups to mature promptly. Planning a financeable route to turning plans into products, further work demonstrating proof of concept, differentiated capabilities and development of a preliminary intellectual property position is necessary to be able to attract third party investment at an attractive valuation.
During a proof of principle phase Acidophil provides management services on a contract basis. This ensures that affiliated companies have the management support they need, without being loaded with unnecessary overheads. Acidophil provides all or part of a management team, to match the requirements of the company at a given stage in its lifecycle. Services are provided to advance company development and/or optimize the return on investment for all investors in the affiliated company, including Acidophil.
Acidophil’s business model is primarily driven by return on investment. It creates the types of companies it wishes to invest in, then provides the necessary management with the goal of improving the likelihood of an attractive return. Acidophil is an evergreen investor, with a successful track record on either side of the Atlantic, the funds of which derive from its founder’s family businesses and investments. The company’s investment strategy is to solely invest in businesses that it has played a significant role in the founding of, at a level that guarantees significant board influence (alongside Acidophil, independent third party investors have the responsibility of pricing each round of investment,). Acidophil is unusual in that it provides investment throughout a company’s lifecycle: from the early stages, that is before participation by other investors (in the form of convertible notes), to company exits in the form of mergers and acquisitions.