InVenture (INV) Q1 2025: Excelsius Lead Generation Surges 300% as AI Data Center Demand Accelerates
Excelsius, InVenture’s two-phase liquid cooling platform, saw a 300% spike in lead generation since February, propelled by AI-driven data center demand and NVIDIA’s roadmap clarity. Management is positioning Excelsius to capitalize on a multi-billion-dollar inflection in liquid cooling adoption, with manufacturing capacity and channel partnerships scaling to meet large-scale orders. Investors should watch for revenue recognition in the back half of 2025 as contract momentum builds and operational leverage comes into focus.
Summary
- AI Infrastructure Drives Demand: Excelsius’s liquid cooling tech is attracting hyperscalers and OEMs as rack densities surge.
- Channel and Partner Expansion: Strategic alliances and reseller channels have quadrupled since January, accelerating pipeline velocity.
- Manufacturing Readiness for Scale: Internal and contract manufacturing can support 10,000+ rack orders, positioning for near-term revenue inflection.
Performance Analysis
InVenture’s Q1 revenue remained modest at $0.2 million, consistent with prior guidance that revenue growth would be second-half weighted. The quarter’s results reflect a holding pattern as the Excelsius business ramps, with management fees from the Inventus ESG Fund the sole contributor to top line. General and administrative (G&A) expenses totaled $20 million, driven by non-cash equity comp, professional services, payroll, and amortization, with management reiterating its intent to reduce reliance on external advisors as public company processes mature.
The most material financial development was a $233 million non-cash goodwill impairment, attributed to share price declines and broader market volatility. Adjusted EBITDA loss was $21.8 million, with cash management actions including $18 million in debt-for-preferred-share swaps and $27 million in new capital from convertible debentures and equity facilities. Inventory and capital allocation remain tightly managed as Excelsius prepares for anticipated order flow in the second half.
- Revenue Timing Deferred: Management confirmed that most growth will show in H2 as Excelsius orders convert.
- Cost Structure Signals Operating Leverage: G&A elevated by one-off items and growth investments, with expectations for normalization as scale builds.
- Balance Sheet Bolstered: Cash position improved through founder-led debt reduction and external capital raises, supporting liquidity for growth.
Financials remain a lagging indicator, with the Excelsius business poised to drive the consolidated P&L as adoption accelerates and manufacturing ramps.
Executive Commentary
"The liquid cooling market is sizable and growing and is estimated to reach $5 billion within the next three years. Given the trajectory of increasing chip densities, industry players believe adoption of liquid cooling technologies will be all but required, and Excelsius is at the forefront with the leading technology in the space."
Bill Haskell, Chief Executive Officer
"We anticipate having sufficient internal manufacturing capacity to reach profitability, which we believe would happen by delivering around 100 racks per month. Clearly, the volume potential we've outlined here based on the size of the addressable market far exceeds that 100 rack per month threshold."
Dino Fodorero, Chief Revenue Officer, Excelsius
Strategic Positioning
1. Excelsius at the Nexus of AI Infrastructure Buildout
Excelsius, InVenture’s majority-owned liquid cooling platform, is directly addressing the “thermal wall” facing next-generation data centers. With AI chipsets from NVIDIA and AMD pushing rack densities toward one megawatt, traditional air and single-phase cooling are rapidly becoming obsolete. Excelsius’s two-phase direct-to-chip technology offers superior heat removal, lower risk of IT equipment damage, and operating cost savings—critical for hyperscalers and colocation providers scaling for AI workloads.
2. Channel Expansion and Ecosystem Leverage
Partner and reseller networks have expanded from six to twenty-one since January, increasing Excelsius’s reach across hyperscalers, OEMs, and colocation operators. Over half of new opportunities now originate from channel partners, with value-added distributors like Avnet and Climb opening access to thousands of global resellers. This ecosystem approach is accelerating pipeline velocity and diversifying the customer base beyond single OEM agreements.
3. Manufacturing and Fulfillment Readiness
Excelsius has proactively built internal and contract manufacturing capacity to fulfill both near-term and large-scale orders. The company’s North American supply chain and contract manufacturing partnerships can support 10,000+ rack orders, with typical fulfillment cycles under 90 days. This readiness is a key confidence driver for hyperscalers evaluating Excelsius for platform refresh cycles, and underpins management’s conviction in a second-half revenue inflection.
4. Technology Differentiation and Adoption Cycle
Excelsius’s two-phase platform outperforms single-phase water-based solutions on efficiency, safety, and ease of retrofit. The technology enables drastic reductions in power usage for cooling, unlocks free cooling in high-heat geographies, and minimizes downtime with hot-swappable components. As AI chip roadmaps accelerate, customers are increasingly leapfrogging single-phase to adopt Excelsius’s future-proofed solution, with pilot deployments and proof-of-concept cycles now underway at major hyperscalers.
Key Considerations
InVenture’s Q1 call was less about backward-looking results and more about signaling a coming inflection in Excelsius’s growth trajectory, as secular demand for AI data center infrastructure collides with a maturing go-to-market engine.
Key Considerations:
- AI Chip Roadmap Drives Urgency: NVIDIA’s latest roadmap has triggered a wave of customer engagement and clarified the need for advanced cooling, catalyzing Excelsius’s pipeline.
- Partner-Led Demand Generation: Strategic alliances have quadrupled since January, with over half of new leads now sourced through value-added distributors and ecosystem partners.
- Manufacturing Scalability De-Risks Execution: Internal capacity is sufficient for profitability at modest volumes, while contract manufacturing can flex to hyperscale orders, removing a key bottleneck for enterprise adoption.
- Revenue Back-Weighted to H2: Management is clear that financial results will lag pipeline momentum, with a material inflection expected as orders convert in the second half.
Risks
Execution risk remains high, as Excelsius must convert proof-of-concept deployments into large-scale orders and manage complex fulfillment cycles. Competitive pressure is intensifying, with at least one other viable two-phase competitor and rapid technology cycles. Macro volatility, tariffs, and customer spending delays could shift timelines, with management noting a slower first half across the industry.
Forward Outlook
For Q2 2025, InVenture guided to:
- Continued low revenue as Excelsius pipeline converts to orders
- G&A expenses normalizing as reliance on external advisors declines
For full-year 2025, management maintained guidance that:
- Revenue and earnings growth will be back-half weighted, driven by Excelsius order flow
Management highlighted several factors that will shape performance:
- Ramp in customer engagement and proposal sizes as AI infrastructure spend accelerates
- Ongoing capital raises to support liquidity and growth investments
Takeaways
InVenture’s Q1 call signals a strategic pivot from capital formation to operational execution, with Excelsius positioned to capture a multi-billion-dollar adoption cycle as AI data centers transition to advanced liquid cooling.
- Excelsius’s 300% lead generation surge is a direct readout on AI infrastructure urgency and technology fit, not just marketing noise.
- Manufacturing partnerships and channel expansion de-risk scaling and support management’s conviction in a near-term revenue inflection.
- Investors should watch for pilot conversions and revenue recognition in H2 as a key validation of Excelsius’s market position and execution capability.
Conclusion
InVenture’s Q1 results confirm that the company’s value creation is now tightly linked to Excelsius’s ability to capture the two-phase liquid cooling adoption wave. With channel, technology, and manufacturing levers aligned, the second half of 2025 will be decisive for validating the business model and unlocking operating leverage.
Industry Read-Through
InVenture’s update reflects a broader inflection in data center infrastructure, as AI-driven workloads force a rapid shift from legacy air and single-phase cooling to advanced liquid solutions. Hyperscaler and enterprise demand for thermal management is accelerating, with channel partnerships and manufacturing readiness now critical differentiators. Peers in the cooling, power, and data center hardware ecosystem should expect continued demand pull-through, but must also navigate rapid technology cycles and customer risk aversion to new platforms. Investors should monitor adoption curves, pilot-to-production conversion rates, and supply chain agility as key industry performance drivers in 2025 and beyond.