Investment Strategy
Our technology investments are focused on accelerating the
product development cycle and getting products into the marketplace
as quickly as possible. The portfolio includes investments
in both royalty-bearing technologies and equity positions
in the companies themselves.
Of course, all investment opportunities are carefully screened
to identify those that offer the best potential value to the
utility and ratepayers. Project selection criteria include
the following:
- Technology concept and potential impact (revolutionary
vs. evolutionary)
- Alignment with corporate strategies
- Probability of success
- Fit with SoCalGas’ overall portfolio balance
- Potential for partnering/co-funding, or “leveraging”
with others
- Potential to become commercial within five years
- Technology development is considered early-stage
- Potential for adoption by our customers or our T&D
operations
- Southern California Gas Company’s value as
a potential strategic partner (e.g., not merely a traditional
venture capital investor)
- Positive due diligence. Due diligence typically
includes a review of the potential partner’s RD&D
strategy, overall business plan, existing and potential
stakeholders, management team, intellectual property assets,
competitive analysis and projected sales forecast.
- Favorable terms and conditions with a clearly-defined
Southern California Gas Company exit strategy.