Notes from the Valley
Oriol Pascual20 - 1 - 2009
Good News...
Clean-tech is the next big thing!!
Outline
CA Recipe for success
Innovation & Incubation
The VC’s perspective
Clean-tech to follow
CA Recipe for SuccessPolitical will & smart policy
Entrepreneurship & innovation
Money; Ca 40% of global VC in clean
Circumstance
San Jose green vision 201525.000 new clean-tech jobs
50% energy reduction per capita
100% renewable electricity
Green buildings; 50 m. sq. feet
San Jose green vision 2015
100% re-use of waste water
Development general plan
100% public fleet using alternative fuels
Smart, zero-net street-lighting
100 miles interconnected bike trails
Innovation: IDEOProduct & system Innovation through design
Approach to sustainability; social impact
Aquaduct purifies water while biking
Aquaduct by IDEO
NGO;The Climate Group
The Climate GroupFocus on promoting leadership on climate & influence change
Best practices, low-carbon prosperity
Network & incubator: Together.com, Smart2020
Incubation;EBC - Plug & Play
San Jose’s EBCFocus on energy & env. technology commercialization
120 start-ups since 1994
Public & non-profit
Incubator of the year 2008
EBC Scope
Clean energy
Clean transportation
Technology commercialization
EBC services
Space
Shared facilities & office equipment
Front office
24/7 access
Business consultations
EBC services
Commercialization of tech
Network
Financing assistance
Education & coaching
EBC requirements
Clean-tech product or service
Start-up, early stage dev. or re-structure
Viable BP
Market identification & knowledge
EBC requirements
Technical capability
Financial plan
Potential for creating new jobs
EBC criteria
Business potential
Quality BP
Clarity market focus
EBC criteria
Reality assessment competition
Quality management team
Ability to utilize cluster services
Plug & Play3 years; 3 centers
220 start ups; 70% internet-based
Goal; 1000 start-ups by 2010
Private & for-profit
Scope; tech oriented product & services
Plug & Play services
Space (cubicles), adaptable, monthly fee
In-house data centers
Recruiting; talent acquisition
Corporate development
Product development (China, Latin Am)
Plug & Play services
Funding; monthly deal review session with 20+ VCs
Events; demos
International; goal 40% int start-ups by 2010
Plug & Play criteria
“As long as they innovate”
BP reviewed by 2 board members
6 months to 2 years (non-fixed)
Plug & Play goes green
Just started 3 months ago
Goal; 30-40 by end 2009
Energy intelligence (software)
Need to re-define services
The VC perspective
VC in Silicon Valley
740 funds in the Valley
20+ angel investors groups
2930 deals = 22 b (2008)
VCs & clean-tech
40% decline investments in 2008 Q4
Used to be the fastest growing
Good news; everybody feels confident that IT IS the investment to be in
VCs & clean-tech
Winners
Efficiency process (software)
Enhancement of clean energy (i.e. solar)
Carbon is getting momentum
VCs & clean-tech
Losers
Capital intensive; wind, solar
Fuels and batteries
VCs; what they look for?
Potential market; +1 billion
Team composition; tech+bizz+marketing
Competitive landscape
IP strategy
Innovative companies
SunpowerThe most efficient PVs on the planet
1985; Standford spin out
First used by NASA
400 employees
Vertical approach
Clean Fish
Premium fish from sustainable sources
Farm & wild
Innovation; value chain & aquaculture techniques
TeslaHigh-end electric cars
Innovation; unique engine & battery technology
Partnering with Ford to provide battery technology
Magnanimus Wine
Sustainable, organic & “biodynamic” wines
2 years in the market
10.000 l/year (goal: 50.000 in 3 years)
Wrapping-up
Final notes
Access to talent
Knowledge+money+entrepreneurship
Timing & appropriateness
Fail, fail often, fail early