PowerWorld grows without help of venture capital

CHAMPAIGN – Mark Laufenberg's company has more than 600 customers in at least 57 countries around the world.

But the president of Champaign-based PowerWorld Corp. said his company wouldn't be a good candidate for venture capital.

"We're too independent. We've been around too long," he said after discussing his business at a Startup Cafe event Monday at EnterpriseWorks.

PowerWorld, based in the University of Illinois Research Park, provides software that helps people visualize the flow of power across the electrical grid – and what happens when the load changes.

The software is used by utility companies, regulatory agencies, consulting firms, universities and financial analysts.

One of its products, PowerWorld Simulator, provides power-flow analysis and power-system visualization. Another product, PowerWorld Retriever, provides real-time visualization for those in the control room.

The products are used widely not only in the U.S., but also in Japan, Thailand, China, Australia, the Philippines and South America, Laufenberg said. They don't get wide use in Europe, though, as a result of competing products, he added.

Laufenberg, who received a doctorate from the UI, said he's "never seen another company" quite like PowerWorld.

"We've never had venture capital. We've had no outside investments, no debts or loans," he said. Ninety-six percent of PowerWorld's stock is owned by people who work for the company.

The company started out growing slowly and had one year where revenues jumped 150 percent before reaching a plateau.

"We've had roughly the same level of revenue the last five to seven years," he said, adding that PowerWorld continues to develop new software tools.

Laufenberg said the company derives about 70 percent of its revenue from licensing use of its products, 20 percent from consulting, 5 percent from training and 5 percent from federal grants.

If the company did more consulting, "we might make more money, but it would not be that much fun," he said.

The original software was developed by UI Professor Thomas Overbye and commercialized by PowerWorld when the company was established in 1996.

Since then, the business has grown to 10 full-time employees, adding about one a year, Laufenberg said.

When asked how PowerWorld performed during this year's recession, Laufenberg said, "We're not doing great, but we're doing just fine. We're still profitable."

More than 50 people attended the Startup Cafe event, which regularly features high-tech entrepreneurs discussing their business experiences.

Also on this date

• Prosecutor: Affluence may have led to couple's murder
• Danville man pleads in 2006 shaking death of child
• First Busey loss for 3rd quarter: $283 million
• UI faculty members applaud outgoing leaders
• Lane closure planned on Neil Street for sewer work
• County's bomb-sniffing dog dies
• Man accused of molestation has next court appearance
• Glimpse of new Washington School presented
• Trick-or-treat hours in area communities
• Obituaries

» More