Permasense case study

Background

  • Rapid Innovation Group worked with Permasense Limited 2010 – 2015.
  • Permasense is a provider of differentiated corrosion monitoring technology aimed at the Oil & Gas market.
  • The company grew out of Imperial College with the R&D being funded by one of the Oil & Gas supermajors.

 

Rapid Innovation Group’s brief

  • To work hand-in-hand with the CEO from 2010 in taking the company from a single customer entity to one with customers across the world in different segments of the Oil & Gas market.
  • Year 1: Negotiate out of exclusivity with the supermajor. Embed the technology with 6 other “early adopters” in the market.
  • Year 2: Demonstrate significant growth and repeat orders both from within existing sites and with other sites within groups.
  • Year 3: Further demonstrate growth and move towards upstream.
  • Year 4: Grow revenues in emerging markets through establishing channel partners in these markets.
  • Year 5: Grow revenues through channel partnerships in the Asian and Australian markets as they set up new offices and hired new personnel to cover the Americas and Europe.

 

Achievements

Year 1:

  • Exclusivity relaxation negotiated without surrendering any equity or significant royalty payments.
  • 8 new customers proving that the technology had application across the industry, not just for a single customer.

Year 2:

  • Revenues of $3.6m.
  • Repeat orders from all but 2 of the Year 1 customers.
  • 15 New sites.
  • Penetration across all the supermajors.

Year 3:

  • Revenues of $5.4m.
  • 20% of revenues from upstream.
  • Customers across 20 countries in all 6 major continents.
  • Strategic partnership creating significant value / revenues for the company.

Year 4:

  • Revenues of $7.2m.
  • Emerging markets constituted a third of revenues.
  • Channel partnerships set up in all the major Asian markets.

Year 5:

  • Revenues > $10m (40% growth in a down market in Oil and Gas).
  • Asia and Australasia expected to comprise more than 30% of yearly revenues.
  • Significant new orders in three major Asian markets.
  • 6 of 7 channel partnerships delivering revenue.

 

By the time Rapid Innovation Group stopped working with Permasense, they had a Chief Revenue Officer, a Chief Marketing Officer, 3 additional sales offices (US, Asia-Pacific and Aberdeen) and a team of 10 people in the sales and marketing functions to drive growth across the business across both upstream and downstream.