EEx Applicant Packet - Cohort 7 - Startup Accelerator · We are a growth accelerator program...

December - March 2018 Quick Apps will be open (take 5 minutes to apply!)

On a rolling basis We will invite qualified applicants to fill out our full application

March 30, 2018 Full application deadline

April - July 2018 Due diligence and cohort selection

August 2018 Offers for our next cohort will be sent

Late Summer 2018 Kickoff Week in California for Equity & Access Track

October 2018 Kickoff Week in Honolulu for Go-to-market and Demonstration Track

Applicant Packet | Cohort 7

Key Dates

http://www.elementalexcelerator.com/apply

Table of Contents

Page

Our Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

About Elemental Excelerator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

What is the profile of a successful applicant? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

What technologies are Elemental Excelerator targeting for this next cohort?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

The Accelerator Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Demonstration Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Go-to-market Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Equity & Access Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

What does Demonstration project success look like?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Program Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

EEx Program Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

You’re accepted! What services will Elemental Excelerator provide?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Meet Our Global Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Technology Partnerships & Other Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Hawaii Community Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Our Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Elemental Excelerator FAQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Key Application Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

elementalexcelerator.com/apply

http://elementalexcelerator.com/apply

MobilitySmart(grid) EV

chargingSeamless & connected

urban mobilityMobile EV chargers Big data meets location

analytics for the transportation grid

Real-time transportation

information

AgricultureBehavioral science to

save aviation fuelCreating the future of

urban mobilitySocial transportation

for taxisOne crop, multiple revenue streams

Manage your ranch from your pocket

WaterAerial spectroscopy to

help farmers efficiently allocate resources

Raising local beef via vertically integrated

supply chains

Fitbit for farms Smart water leak detection & control

for homes

Water conservation & usage monitoring

without smart meters

EnergyCustomer engagement

for water utilitiesFlywheel energy

storagePredictive analytics and energy storage

Uninterruptible power supply for microgrids

Plug-and-play solar connection

Creating virtual power plants from

existing infrastructure

Mapping the grid to enable data-driven

decision making

Real-time management for a distributed energy

network

Noise canceling headphones for the

distribution grid

Centralized energy management

platform for single & multi-site facilities

10x cheaper, whole-building energy

efficiency

Weather analytics and forecasting for renewable energy

management

Database platform and high definition

analytics to help solve grid challenges

Software platform that supports the entire

solar workflow, from lead to financing

Artificial intelligence and blockchain for

critical grid infrastructure

Bringing computational

firepower to solar system design

Software and business solutions for

energy storage systems

DIY energy monitoring platform

Your personal energy advisor

HVAC's smart software layer

Reduced financial risk for solar

Energy management via machine learning

Solar sharing for multi-family dwellings

Customized home efficiency and maintenance

Energy efficient lighting and automation

Delivering superior control and efficiency to industrial freezers

Converts CO2 into cost-competitive

chemicals and fuels

Creating the smart home from your

smartphone

Universal application programming interface

for energy data

Simple CSP Liquid metal battery Plug-level visibility and control

Intelligent energy monitoring for solar

customers

Upgrade that old-school AC unit with

Momit Cool

Automated solar sales

Fintech & Cybersecurity

And beyond…Valuation & risk analysis

tools to unlock investment into renewable energy

assets

Cloud-based platform protecting companies against

cyber-crime

Social platform to align personal values

and spending

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About Elemental Excelerator

We are a growth accelerator program headquartered in Hawaii with offices in California. Each year, we select 12-15 companies that best fit our mission and fund each company up to $1 million. Our selection process is competitive - we accept about 5% of our applicants each year.

Our Approach

As one of the latest stage accelerator programs for infrastructure and clean technologies, we are known for deploying projects and helping our companies scale into new markets. Our aim is to bring commercial opportunities to entrepreneurs who are building positive world-changing products in energy, mobility, water, agriculture, and beyond.

How do we do this?

• We take a place-based approach to innovation by co-funding, designing, and deploying projects alongside startups and local businesses.

• We take a systems view to building cohorts because we see value in connecting the most innovative thinkers across multiple industries.

• We build a custom ecosystem around each portfolio company that is tailored to their stage, industry, and growth trajectory.

What are the major deal points?

• For the Go-to-market Track, we provide $75,000 USD in grant funding for customer discovery and validating the next stage of a company’s business model, along with additional services to help companies scale in Hawaii and the Asia Pacific.

• For the Demonstration Track, we provide up to $1,000,000 USD in grant funding for project deployments in Hawaii and Asia Pacific. This is federal funding and comes with certain restrictions. See page 16 for more information on the mechanics of project funding.

• For the Equity & Access Track, we invest up to $750,000 USD in companies with an innovative technology and growth strategy that increases tech access and sustainability within low-income communities in California. See page 17 for more information on how this investment is structured.

• In addition to funding, we provide a variety of services to our portfolio companies. See page 10 for more information on our services.

• For our Go-to-market and Demonstration Tracks, we also require a 1-6% warrant donation to help keep the program going since we operate as a nonprofit (see page 17).

How do we evaluate companies? For Go-to-market and Equity & Access Tracks, applications are scored out of 50 points; Demonstration Track applications are scored out of 60 points (10 extra points allocated to the project proposal). During the selection process, we look for compelling technology, qualified and passionate teams, fit with Elemental Excelerator offerings, creative business models, and a fit into our regions of focus: California, Hawaii, and Asia Pacific.


Technology

Team

Market traction

Business model

Fit for EEx

Proposed project

Demonstration only 10 10

1010

10

50

60

10


What is the profile of a successful applicant?

For the Demonstration Track, we are looking for: • Growing businesses with a scalable model and clear opportunities for impact across markets • Proof points in your home market (multiple customer deployments) • Appetite for expansion • A demonstration project concept that is high-impact and in line with your core business strategy

With a preference for applicants with… • Significant revenue • 3+ months of runway • A growing team that can support multiple project deployments • Significant outside capital raised (raising a Series A and beyond) • More developed demonstration projects with partners/customers already committed

For the Go-to-market and Equity & Access Tracks, we require: • Two full-time employees • A minimum of an operating prototype • For Equity & Access only, an innovative technology and sales strategy that increases access to this

technology for low-income communities in California

With a preference for applicants with… • Revenue • Differentiated IP • Interesting tech solving a new problem, or solving an old problem in a new way • A strong team with relevant domain experience and key insights into the market • Some outside capital raised

What technologies are Elemental Excelerator targeting for this next cohort? Our main four pillars are:

• Energy • Food and agriculture • Water • Mobility

We are also looking for…

• Cybersecurity • Materials • Built environment • Resource efficiency, recycling, and plant-based plastics • Solutions that are climate and community positive

What we don’t fund… • Consulting firms • Marketing or PR agencies • Nonprofits • Positive world-changing ideas without a prototype • Companies with fewer than two full-time team members


I lead recruiting for Elemental Excelerator. I’m looking for motivated entrepreneurs who are ready to take their company to the next level. Will that be you?

MEET RAMSAY!


The Accelerator Program

As a growth accelerator, we will supercharge your network and provide access to our relationships and resources, but we will not do all the work for you. Our expectation is that you will carry opportunities and projects across the line with seamless execution. Here is a detailed summary of activity by track:

Demonstration Track

Demonstration Track companies are asked to apply with a concept of the project you want to implement with EEx. The more homework you’ve done – such as lining up project partners, knowing how you fit into the ecosystem, and collecting letters of support from customers and cost-share partners – the more competitive your application will be. The project must exhibit additionality. We are not a Business Development engine, we want to fund a new piece of technology, new angle on your business model, or entry into a new geographic territory. Our objective is to buy-down the risk of trying something new that will be transformational for your venture. We will not fund projects that are already under contract.

There are two key components to most demonstration projects that we’ve funded:

1. Technology development - To build out a new strategic feature or enhancement that will get your solution to the next level

2. New customers or partners - Who enable you to demonstrate a new market, or commercial opportunity that will help you grow faster

Go-to-market Track

Our Go-to-market Track is custom-designed for companies with an innovative technology and an excellent team (2 or more people), in search of product/market fit. We work with you on business model validation, development, and partnership - described in more detail below:

1. Validation of product/market fit & business model • Validate and vet your product with customers in the market • Test your hypothesis and underlying assumptions • Solidify a scalable business model

2. Company development • Work through company transitions (e.g., pivots and new market

development) • Develop key leadership skills (especially for first- or second-time CEOs) • Analyze your organizational requirements to scale

3. Partnerships & connections • Peer-to-peer feedback and problem solving • Engage and facilitate EEx stakeholder opportunities • Access to subject matter experts • Introductions to customers and other strategic partners


What we provide: 1. Up to $1M grant funding 2. Project design and project

management support 3. Introductions to customers, investors,

corporates, and other strategic partners (with ongoing relationship support through project completion)

4. Support around policy, permitting, and other barriers to deployment

What we provide: 1. $75k grant funding 2. Mentorship and

targeted expertise 3. Introductions to

customers, investors, corporates, and other strategic partners


Equity & Access Track

Our Equity & Access Track is designed for companies with an innovative technology and an excellent team (two or more people), in search of product/market fit, specifically within low-income communities or communities where there’s a compelling opportunity to increase equity and access to innovation. We work with you on business model validation, building your network, finding your product/market fit, and piloting your solution in a low-income or opportunity community in California.

1. Validation of product/market fit & business model • Validate and vet your product with customers in the

market • Test your hypothesis and underlying assumptions • Solidify a scalable business model

2. Company development • Work through company transitions (e.g., pivots and new market development) • Develop key leadership skills (especially for first- or second-time CEOs) • Analyze your organizational requirements to scale

3. Partnerships & connections • Connections to pilot project partners • Peer-to-peer feedback and problem solving • Facilitated EEx stakeholder opportunities • Access to subject matter experts • Introductions to customers and other strategic partners

What does Demonstration project success look like?

We like to see results scale up at least 10x our project size within 1-3 years. Here are examples of three demonstration projects across three different tech verticals - Agriculture, Energy, and Mobility:

200+ acres of pongamia planted on Oahu’s north shore

1 MW of energy storage deployed across 29 customer sites on Oahu’s electric grid

2 robotic EV chargers installed at Honolulu’s Aiport Trade Center without electrical upgrades

in partnership with local landowners & farmers

in partnership with Hawaiian Electric & local businesses

in partnership with Airport Trade Center & Hawaiian Electric


What we provide: 1. Up to $750k investment 2. Mentorship and targeted

expertise 3. Introductions to customers,

investors, corporates, and other strategic partners (with ongoing relationship support)


TerViva - EEx co-funded the first commercial-scale orchard for TerViva, allowing them to hone in on key processes and validate crop yield data on the Oahu orchard. Scale-up: TerViva used their EEx project proof point to sign a major partnership with Alexander & Baldwin (who owns more than 36,000 acres on Maui alone) and expand operations to Maui.

Stem - Through the EEx project, Stem was able to prove, for the first time, their dual value business model using batteries in commercial buildings. They demonstrated the ability to provide commercial customers with demand charge management and load optimization while simultaneously aggregating the systems and turning over 1 MW of excess reserves to Hawaiian Electric as a grid asset. Scale-up: Stem used the business model scale up blueprint developed in Hawaii to bid into RFPs in California, winning an 85MW contract with Southern California Edison.

FreeWire - This project was the first deployment of FreeWire’s Level 3 Mobi chargers. Scale-up: Through this deployment, FreeWire was able to refine their product development strategy and hone focus on their next big market - robotic battery replacements for diesel generators.

These projects all demonstrated something new for the companies and led to significant follow-on growth opportunities through customer relationships and investments. This is what we mean by transformational.

Program Fee

Companies selected for our portfolio are asked to pay a program fee. The fee helps us cover meals, transportation, and other activities provided to you during the Elemental Excelerator program.

• $5,000 for Demonstration Track • $3,000 for Go-to-market Track • $3,000 for Equity & Access Track

EEx Program Calendar

We require CEO engagement in our program plus at least one additional key person (e.g., CTO, CCO). We ask that you participate in 1 or 2 of the Elements in the following years to continue building relationships among companies and partners, sharing your learnings, and finding new commercial opportunities within our ecosystem. Here are the three elements:


MEET DANA!

I work with our portfolio companies to custom-design an experience that is meaningful and transformational for the venture.


Element 1: Kickoff Weeks

Late Summer 2018 in California Equity & Access Track

October 2018 in Hawaii Go-to-market and Demonstration Tracks

Welcome! The purpose of this Element is to introduce you to a large group of local and global stakeholders. We will also work on further defining the Scope of Work for your demonstration project, or to achieve your Go-to-market or Equity & Access Track objectives.

Element 2: CEO & Leadership Summit

June 2018 in Hawaii

This Element is designed to create relationships with CEOs across sectors. Our goal is to develop 100+ leadership teams who know each other, are highly collaborative, tapped into resources, and are accelerating impact as a result. Alumni companies are also invited to attend to create cross-cohort relationships and business collaborations.

Element 3: EEx Investor Pop-ups & EEx Interactive

Throughout 2018 in the Bay Area

EEx Investor Pop-ups are pitch events in the Bay Area throughout the year, where we introduce you to investors, strategic partners, and customers. These events are invite-only. The audience is curated to provide high-impact networking opportunities before and after the event. Select alumni companies are invited to pitch at EEx Interactive as well. In order to participate, we will vet your investor materials to ensure you are ready for the main stage.



You’re accepted! What services will Elemental Excelerator provide?

Services are tailored to the specific needs of each company and typically include:

• Executive-level introductions to California, Hawaii, and Asia Pacific businesses, agencies, government representatives, regulators, financial institutions, and other key stakeholders beginning at Kickoff Week in October. Our philosophy is to curate qualified and outcome-driven introductions, and provide ongoing relationship management with key decision-makers. We customize introductions to your business model and stage, with the objective of accelerating sales and partnership opportunities that will make a long-lasting impact on your organization.

• Connections to our network of 250+ angel investors, venture capital firms, and strategic partners. • One-on-one time with Global Advisory Board members who have been handpicked for their

interest in investments, partnerships, pilots and/or acquisitions. The Global Advisory Board meets twice a year and connects with our team on a monthly basis with the goal of driving deals forward and adding value to the ecosystem.

• Support from our institution, including 20+ Elemental Excelerator team members. The EEx team is located in Hawaii and California, and we encourage you to think of EEx as an extension of your team. We extend our personal relationships with decision makers across California, Hawaii, and Asia Pacific, and can support portfolio companies through challenges such as hiring, scaling, fundraising, acquiring customers, marketing, policy transformation, etc.

• Inclusion in an ecosystem of talented technology entrepreneurs, which in the past our companies have used to find and hire key individuals from a trusted network, due diligence corporate partners, form investor circles to share off-the-record intel, and access advice from people who have overcome challenges similar to yours.

• Access to speaking and media opportunities for our startups at industry and investor events. • Our office is structured as a co-working space to provide “hot desks” available at no cost to our

portfolio companies for short visits. We have also partnered with other co-working spaces in Hawaii for affordable longer-term options.

• Our communications team pushes messages out through media channels, which raises the profile of our startups. Through our services, portfolio companies have been mentioned in Forbes, Fortune, Greentech Media (GTM), The Energy Gang, Honolulu Star-Advertiser, Hawaii Business, and more.


“Elemental Excelerator has been a keystone in Go Electric’s growth. We developed our business strategy through EEx’s Go-to-market cohort, and subsequently closed a $4M Series A that was secured through EEx introductions. Their intro to Hawaiian Electric led us to be invited to bid on Hawaiian Electric’s demand response RFP, and we are currently shortlisted for a major multi-million dollar award.”

Lisa Laughner CEO, Go Electric 2017 Demonstration 2015 Go-to-market


Meet Our Global Partners

The Partnership team’s mission is to bring our startups closer to industry and make collaborations happen at a pace that works for startups. We have developed close relationships with some of the biggest names in the business, and created a cohort that forms our Global Advisory Board. Our partners are deeply committed to co-creating the future of energy and infrastructure, and using their strength to provide commercial opportunities for our portfolio companies.

Our Global Partners are: • Hawaiian Electric Industries - the largest supplier of electricity in the state of Hawaii, supplying power

to 95% of Hawaii's population through the Hawaiian Electric Company, Hawaii Electric Light Company, and Maui Electric Company

• GE Ventures - the venture capital arm of General Electric headquartered in Menlo Park, with offices in Boston, Chicago, Houston, Shanghai and Tel Aviv

• Tokyo Electric Power Company - Japan's largest electricity company, serving 27 million customers • Enel Green Power - an Italian multinational renewable energy company, headquartered in Rome, with

operations in over 16 countries across Europe, North America, and South America • National Grid - a British multinational electricity and gas utility company with regulated and

unregulated activities in the United Kingdom and Northeastern United States • First Philippine Holdings - a management and investment company whose major businesses are

power generation and distribution, with strategic initiatives in manufacturing and real estate • SK Gas - one of the largest conglomerates in South Korea, headquartered in Seoul • Vector Limited - the largest provider of electricity distribution and metering in New Zealand, with other

strategic activities in Australia • U.S. Department of Defense, Office of Naval Research - a federally funded organization that

coordinates, executes, and promotes science, technology and commercialization efforts • Emerson Collective - the investment and philanthropic platform of Laurene Powell Jobs, dedicated to

removing barriers to opportunity so people can live to their full potential, with work centered on education, immigration reform, the environment and other social justice initiatives



Examples of opportunities our Global Partners have brought to our portfolio companies:

1. Testbeds to pilot and roll out new technology solutions. Example: In New Zealand, Vector is utilizing their electricity distribution network and connections with local businesses to roll out projects with three EEx portfolio companies

2. Investment Opportunities. Example: National Grid and TEPCO are both investors in our portfolio company Opus One Solutions

3. Acquisition Opportunities. Example: Enel recently acquired EEx portfolio company eMotorWerks

EEx portfolio companies are provided access to this network of partners. We will continue to nurture a broad set of industry relationships to open up more testbeds across the globe.

Technology Partnerships & Other Resources

Becoming an Elemental Excelerator portfolio company means you have access to our ‘Startup Toolkit’ which includes the following free and reduced-price services:

• Amazon Web Services provides lifetime credits up to $100,000 per startup. • Mathworks, producer of MATLAB and a family of high-powered mathematical software

applications, provides free software for a one-year fixed term. Mathwork's has provided approximately $4 million of free software to EEx companies.

• Referrals to other partner programs such as: Autodesk’s Clean Tech Partner Program, PRIME Coalition, Free Electrons, and Wells Fargo IN2.

• Discounted conference passes for GTM events through Elemental Excelerator’s participation on GTM’s Grid Edge Executive Council; discounts are 30-50% (event dependent).

Hawaii Community Partners

Over the last 7 years, we have developed long-term relationships in Hawaii that we extend to our cohorts for customer discovery, project development and deployment. These partners include utilities, government agencies, businesses, educational institutions, non-profits, agriculture operators and land owners. Our local partners provide meaningful support and connections within the community.


MEET AKI!

I lead our Hawaii Partnerships. I work with our portfolio companies and key stakeholders to deploy technologies locally.


EEx Hui

In Hawaiian language, a “hui” is a club or a band. It also means to unite or to join. Throughout the State of Hawaii, we have developed a coalition of thought leaders, business innovators, and investors grounded in Hawaii who support the mission of Elemental Excelerator. They provide technical, financial and in-kind resources to help our portfolio companies succeed.

Our Hui Members are:

Additional Hawaii partners we work closely with are:

Kamehameha Schools City & County of Honolulu University of Hawaii Board of Water Supply

Alexander & Baldwin Blue Planet Foundation Kauai Island Utility Cooperative


“We may be a small [island] in the middle of the Pacific, but big ideas can come out of here and we’re very proud of that.”

Jon Nouchi Deputy Director, Department of Transportation Services, City & County of Honolulu


EEx Hot Desk

Our HQ is your “hot desk” in Hawaii! We invite all active portfolio companies visiting Hawaii to work out of our office. For longer-term needs we partner with local co-working spaces for discounted office space.

“If you're doing a project in Hawaii, seriously consider moving someone here for the duration of your project. Having someone in market was key to our success and I don't think we could have achieved anywhere near our goals had we not. Working from the Excelerator office has also been a real benefit to us in ways we did not anticipate including increased exposure to in-market and international energy industry stakeholders.”

Tad Glauthier VP of Hawaii Operations, Stem 2014 Demo Track



Our Story

2012 After extensive customer discovery-style interviews with other accelerators, national labs, startups, investors, and others, we found there was a critical gap in funding and resources for startups that have great technologies but need early adopters for proving product/market fit. We founded Energy Excelerator, a late-stage accelerator program, whose core focus was helping innovative companies commercialize their technologies, starting in Hawaii.

2013 We won a $30 million award from the Department of Defense’s Office of Naval Research to scale our program. Through this award we have been able to fund 30+ demonstration projects and 63 portfolio companies through our two tracks: Demonstration and Go-to-market.

We changed our name to Elemental Excelerator. Our new name more accurately reflects the work that we do across systems that effect infrastructure, the environment, and quality of life - including energy, water, agriculture, and transportation. The name also reflects our alignment with Emerson Collective, an organization created and led by Laurene Powell Jobs that is dedicated to removing barriers to opportunity so people can live to their full potential. Elemental Excelerator is a component of Emerson Collective’s Elemental practice, which focuses on strengthening the relationship between humanity and nature through scalable, equitable, and innovative solutions. This is where you come in. We’re looking for the most innovative companies in the world. Will you be next?


April 2017

Today

MEET DAWN & JILL!

We co-founded Elemental Excelerator and have nurtured its growth over the last 7 years to provide opportunities to entrepreneurs who are working to change the world. We want to plug you in, help you deploy, and support you as you scale.


Elemental Excelerator FAQ

1) Can you provide more info on federal funding for the Demonstration Track? Here are three things to note about the way we structure our projects:

A. Companies selected for our Demonstration Track are eligible for up to $1 million of federal grant funding for product deployment. Typically we award projects on a smaller scale and will evaluate additional funding opportunities based on your scope of work and your proven ability to deliver milestones on time and within budget.

B. The grant is structured as a cost-reimbursable, no profit, no fee contract. Translation: Your project budget will be structured based on actual costs. Labor, for example, is reimbursed based on actual pay rates (without profit built in). Invoices are required to be submitted with detailed backup documentation showing proof of actual costs.

C. The grant funding is used to help buy-down deployment risk. This means we do not pay for the whole project, but rather we will structure deployments under a 50-50 cost share model. As an applicant, you are required to find a customer or partner who is willing and able to fund the other 50% of the project.

Cost share, or partner/customer contributions to the project is the way our program evaluates market pull for solutions. Our strong preference is for cost share to come in the form of cash from customers. This is the strongest indicator of market demand for a solution. Secondary cost share sources can be 1) partners, 2) investors, 3) university, state, federal, or other funds. We will recognize in-kind cost share in special circumstances including labor from customers, discounted equipment/leases, and other contributions to the project. Demonstration Track applicants will be asked to describe a specific project to be funded by EEx. Here are 3 examples to illustrate the mechanics of the funding:

• Example 1: Company A has a total project cost of $1 million. Company A applies to EEx with a proposal for $500,000. The other $500,000 to fund the demonstration project will come in the form of cash from the local transportation authority. EEx funds the project and will not provide more than $500,000 to stay within the 50-50 cost share threshold.

• Example 2: Company B has a total project cost of $4 million. Company B applies to EEx requesting $1 million in funding. Their maximum potential funding award cannot exceed $1 million and will not cover 50% of the project cost. Company B will need a customer, investor, and/or other sources to provide the remaining $3 million to fund the demonstration project.

• Example 3: Company C has a total project cost of $2 million. Company C already secured $1.5 million from a customer/investor/other source. Company C applies to EEx requesting $500,000 to green-light the project. In this case, the higher level of cost share demonstrates strong customer pull and is viewed favorably in the application process.

2) Can you provide more info on federal funding for the Go-to-market Track? Companies in our Go-to-market Track are awarded $75,000 of federal grant funding for customer discovery and validating the next stage of a company’s business model. This award is structured as a milestone and deliverable based firm-fixed-price contract. The scope of work and associated payments will be co-created by the company and EEx Portfolio Manager.



3) Can you provide more info on funding for the Equity & Access Track? Unlike EEx’s Go-to-market and Demonstration Tracks, which provide grant and project-cost funding, the Equity & Access Track funding is an investment tied to milestones. We work with you to determine what form of investment makes the most sense for your needs, but we prefer a milestone-based simple agreements for equity (“SAFE”).

4) I need to tell my Board about the 1-6% equity donation for the Go-to-market or Demonstration Track. Can you provide more information? We’re a nonprofit organization and require a 1-6% equity donation to our program for your participation in either the Go-to-market or Demonstration Tracks. It’s our philosophy that when you succeed, part of that success should go back to supporting the ecosystem for future entrepreneurs. We accept the donation through a standard 10-year warrant for either preferred or common stock. Although we provide you with grant funding, your donation of equity is not connected to the amount of funding we provide to you during the program.

Q: How is a company’s donation percentage determined? A: We use a standardized rubric to determine the donated equity percentage upon acceptance into the Elemental Excelerator program. We take into consideration many factors including product maturity, customer traction, current or most recent valuation, funding raised, size of team, and revenue. Generally speaking, later stage companies trend toward a smaller percentage, and earlier stage companies trend toward a higher percentage.

Q: How do you determine the strike price for the warrant? A: The strike price is determined by the price per share at the last round of financing. Q: Is donating warrants to the program required? A: Yes, it is a requirement of our program. We do not accept companies into the program without a fully-executed warrant.

Q: What do you do with the warrants? A: It is our general strategy to pursue a cashless exercise of the warrant following an acquisition or IPO, but we may exercise early in special circumstances. To date, we have had four successful exits.

5) What technologies are you targeting for the Equity & Access Track? We’re looking to invest in 2-5 companies in 2018 that have technologies and/or business models that increase equity and access to opportunity for low-income communities or communities where there’s a compelling need. Some examples of applicable technologies are community solar, localized water treatment, low cost last-mile transportation options, and business model innovations to provide access to clean electricity. We are also interested in investing in companies that could provide jobs, internships, and/or educational opportunities to low-income communities. Our goal is to increase access to clean technology and employment opportunities in an affordable, equitable, and scalable fashion. We are also looking to push the boundaries in policy, and encourage you to share great ideas in your application regarding policy innovation that will directly benefit low-income communities.



6) How do we know if we’re too early or too late for Elemental Excelerator? Generally speaking, we are looking to select later-stage companies with the characteristics described on page 5. If you have any specific questions related to the stage of your company, please reach out to us at: [email protected].

7) Our company was formed outside of the U.S. Are we still eligible? Yes! We recruit companies from all over the world.

8) If we are accepted, do we need to move to California or Hawaii? No, our portfolio companies come from across the U.S. mainland and international locations such as Spain, Australia, Canada and the UK. We require portfolio companies to travel to California or Hawaii for the Elements described on page 9, and encourage companies to return for key meetings, project milestones, and relationship development. Our program is fundamentally flexible and relocation is not required.

9) I’m about to fill out the application form. Do you have any advice? Here is some specific advice from our team, which follows our scoring rubric:

Technology • In your application, indicate that you have developed a scalable solution that shows growth potential beyond your home market

• Technology validated by a 3rd party - we don’t take technology risk • Technology driven by market demands

Team • We look for diversity, experienced teams, deep knowledge of your industry, and a proven track record of execution

• We test for passion, grit, and coachability

Elemental Excelerator Fit

• Partners or projects deployed in one of our focus areas or has a clear case as to why your next target market is a fit with HI/CA/Asia Pac

• You are at the right stage of growth and have clearly laid out ways we can help you.

Business Model • We assess traction, value proposition, addressable market size, competitive landscape, revenue streams, and cost structure

• Pathway to a repeatable business model, deep knowledge of customer needs, and demonstrated customer traction

• A strong understanding of your first, second, and scale-up markets, as well as a strategy to enter those markets

Fit in California, Hawaii, and Asia Pacific

• Do your homework: knowledge of stakeholders, the policy landscape, regional customer requirements, potential barriers and appetite for your solution will differentiate your application

Demonstration Track only: Proposed project

• We are looking to fund projects that can be completed in 12-18 months, with reasonable risk factors on the implementation side.

• We are looking for projects that are sustainable and have long-term impact. If implementation is successful, the partner or customer should be able to continue using the technology going forward. Our goal is to select Demonstration Track technologies that can scale by a minimum of 10x after completing the Elemental Excelerator program.



That’s a wrap!

We look forward to receiving your Quick App and getting to know you through the application process. A few reminders on our timeline:

More questions? Email: [email protected]

December - March 2018 Quick Apps will be open (take 5 minutes to apply!)

On a rolling basis We will invite qualified applicants to fill out our full application

March 30, 2018 Full application deadline

April - July 2018 Due diligence and cohort selection

August 2018 Offers for our next cohort will be sent

Late Summer 2018 Kickoff Week in California for Equity & Access Track

September 2018 Cohort onboarding

October 2018 Kickoff Week in Honolulu for Go-to-market and Demonstration Tracks





EEx Applicant Packet - Cohort 7 - Startup Accelerator · We are a growth accelerator program...

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