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

oriol@enviu.org