Pivod Technologies founder and executive chairman, Phillip Jenkins, has sold his 26 per cent stake in the business and has left to establish a new commercialisation vehicle for start-up technology companies.
Mr Jenkins was the majority shareholder in West Perth-based Pivod until March last year, when an offshore investor bought a 51 per cent holding in the company.
About three months later, Mr Jenkins sought to leave the company, with the settlement finalised in June this year.
Mr Jenkins said his intention had always been to sell Pivod, which he established in 1999, and said that while the group was experiencing strong growth in sales he felt it was an opportune time to leave.
“I wasn’t happy with the way the subsidiaries were being run and the way the company was expanding into the US,” he said.
Pivod’s existing directors, including chairman Wes Medford, and related entities bought Mr Jenkins’ 26 per cent shareholding.
While the board chose not to appoint a new executive chairman to replace Mr Jenkins, it has made some other management changes, including the appointment of new chief executive officer, Sam Wade, in January.
Mr Wade previously worked for communications and technology giant, Cisco Systems Inc, which is one of Pivod’s major clients.
Mr Jenkins’ new venture, Technology Intellect Group, has been set up to advise technology-based start-up companies on commercialisation.
The group will have expertise in engineering, law, financial services, marketing, taxation and patent procedures.
Mr Jenkins said the group was aiming to raise between $20 million and $40 million, and would begin approaching investment funds based in the eastern states this week.
He said the new venture was something he had thought about for a decade. “We’ll be doing things differently to the way venture capitalists do. We’ll provide a full service at all levels of consulting."
“That includes marketing campaigns, technology reviews, things which make a product more palatable. It’s not research and development for its own sake, it’s got to be a market driven product.”
Mr Jenkins said there were currently five WA-based companies that were of interest to the group, three of which were about to secure patents.
“We’re aiming to have a fund with eight to 12 technology companies, with a good spread of risk for investment,” he said.
