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Elemental Excelerator Impact Report

2015 - 2016

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You know that it’s in our nature to iterate and evolve. In April 2017, we said goodbye to Energy Excelerator and hello to

Elemental Excelerator.

Our new name better communicates our systems approach and the fact that we have portfolio companies in water, agriculture, mobility, finance,

and cybersecurity, as well as energy. We also love the new name because it reflects our alignment with Emerson Collective, whose nature-related practice is called Elemental. Emerson Collective is a Bay Area-based

investment and philanthropic platform founded by Laurene Powell Jobs and we are a part of their Elemental initiative.

Where are we today?

42 companies with 22 demonstration projects

587 innovators (full-time employees at portfolio companies)

$15M awarded to portfolio companies

$342M follow-on funding raised by our portfolio companies

What’s brand new?

Selected our 3rd cohort

Vector joins EEx’s Global Advisory Board 📍New Zealand

TEPCO joins EEx’s Global Advisory Board 📍Japan

Record number of applications for our 2017 cohort

Launched EEx Fund One

Announced our 1st cash exit; BrightBox gets acquired by NEXTracker

OCT 2015

JAN 2016

JUN 2016

JUL 2016

AUG 2016

SEPT 2016

We’re going global

Added a for-profit fund to create a hybrid model

Expanded our systems approach to include water

& cybersecurity startups

Hawaii Community Foundation joins EEx’s Global Advisory Board to focus on water innovation

One second, I’m almost done with

my breakfast!

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First Philippine Holdings joins EEx’s Global Advisory Board 📍Philippines

Hi everyone! I’m Grayson. Jill is my mommy (co-founder of Energy Excelerator with Aunty Dawn). They asked me to help put this report together because I’m really good at collages.

You could stop reading here and you'll have an understanding of why my mom was so busy for the past 12 months. But...you'll miss alllllll the details.

If you do decide to read on, could you help us share this with your family and friends? And don’t forget to keep #innovatingfor100.

Come on, let’s go.

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What Am I Reading?

Breaking down our portfolio by sector (energy, water, transportation, agriculture, and cybersecurity) Translating innovation into impact Explaining our dual-track program through company examples Building a portfolio of leaders Accelerating our companies’ growth (fundraises, exits, and productive failures)

1: How is our portfolio growing beyond energy to impact our entire system?

2: How are we working with partners to expand internationally?Bringing the entire ecosystem together (Energy Excelerator Interactive) Partnering with the world’s largest organizations Launching our first international demonstration project

3: How are we creating a hybrid model for energy and impact?

4: How are we building a pipeline of future innovators?

Hi friends! This year’s impact report is called “Evolution,” which is something I know a lot about

because I like to learn about animals and reptiles. My mommy

says that, like my favorite creatures, people and

organizations evolve too.

Throughout the year, we are constantly sharing what we’re up to. Our impact report brings it all together. It shows how our new cohort fits into our existing portfolio, how the milestones our companies are hitting are contributing to our mission, and how the market drives evolution in our model.

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Raising a venture capital fund to complete our hybrid model (EEx Fund One) Testing peer-selected funding (Ohana Award)

Tapping the nation’s top programs and investors to field a diverse applicant pool Supporting the next generation of innovators

Where can you find us next?

Page 5 Page 6 Pages 7 - 8 Page 9 Pages 10 - 13

Page 15 Page 16 Page 17

Page 20 Page 21

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Page 27

Portfolio

The challenges we face in energy, water, transportation, agriculture, and cybersecurity are systems problems, so we take a systems approach to building a high impact portfolio.

Energy storage Energy efficiency

Grid technologies

Cybersecurity

Water

Agriculture

Transportation

Acquired by NEXTracker Acquired by PathionAcquired by

Daimler Chrysler

Partners Hybrid Model Pipeline

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⚡

How can we enable the grid to integrate

more renewable energy?

How can commercial & industrial sectors reduce

their electricity use & costs?

How will new data analytics change the way 

customers engage with their homes?

How can residential customers reduce their electricity use & costs?

⚡

⚡

⚡

💧

🌱

🚲 How do we reduce fossil fuel use in the transportation sector?

How can farmers use new crops and methods to turn fallow land into productive and profitable farms?

How can residential customers reduce their water use & costs?

2 MW of energy storage to benefit local businesses

and the utility

Giving hundreds of workers access to real-time public

transit information

Engaging 2,000 residents and one

utility in energy efficiency programs

Deploying energy efficiency solutions in

12 commercial buildings

Innovation can seem abstract. It's helpful to take a step back and see how our companies and the projects we fund are impacting dozens of businesses and thousands of people in Hawaii and the Asia Pacific region every single day. We aggregated results from our portfolio companies to show their system-wide impact.

Engaging 10,000 residents and multiple utilities in water efficiency programs

900 heads of cattle for local beef100 acres

biofuel crops

How will water utilities deploy data to better serve customers?

💧

🚌

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Portfolio Partners Hybrid Model Pipeline

🏡

🏫

🔋

Enabling 2x the amount of electric vehicles per

one charger

🚗🌳

🐄

🏡

🚲 How do we increase access to transportation for different populations?

🔐Bringing new cyber solutions from finance to energy

2014

“Sometimes it’s hard to foster new relationships with

customers and you have bridged that gap for us so well.

It’s priceless.”

Lisa Laughner, CEO

We help companies build strong go-to-market strategies that take them through Hawaii & the Asia Pacific.

Go-to-market Track $75,000 | 8-month program

Patented micro grid technology that seamlessly integrates grid power with renewable energy, battery storage, and generators for maximum energy efficiency, reliability, and security.

2016

Portfolio Partners Hybrid Model Pipeline

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An example of a company on our Go-to-market Track

3 full-time team members

$3M of grants & awards

Military business plan

Received $75k of EEx grant funding

Customer discovery with HECO

Introduced to GXP Investments by EEx

11 full-time team members

Closed $4M Series A with GXP as lead investor

Developing business model for utilities

2015

Proprietary software and process to deliver energy savings 10x more cost effectively than traditional methods offered.

2016

Portfolio Partners Hybrid Model Pipeline

8

An example of a company on our Demonstration Track

30 full-time team members

$7M of outside funding

Partnering with Alexander & Baldwin to deploy technology in 3 commercial buildings

35 full-time team members

Measures impact in number of power plants eliminated (3 power plants eliminated to date)

We co-design, co-deploy, and co-fund demonstration projects.

Demonstration Track Up to $1M | 12-18 month demonstration projects

"We set up our EEx scope to be successful with just a single site. If we achieved two sites, we were going to be highly successful. Three sites will make this a home run.”

Brenden Millstein, CEO

“During a networking event with the broader Energy Excelerator community, I was having a conversation with Reed [CEO of GOmeter], and a gentleman from a utility. After talking to us for a little while, the gentleman asked, ‘How long have you both known each other?’ Reed and I looked at each other, I remember thinking years or months, and then saying, ‘We met yesterday’ and laughing, explaining that we're in the same cohort, so we're already family.”

Torie Runzel, Director of Operations at and previous co-founder of a tech startup

26% of CEOs were a part of startups with prior exits

4 women CEOs or founders

50% of CEOs have previous startup experience (the other 50 percent come from corporate, financial, or consulting backgrounds)

Portfolio

We’re not only building a portfolio of companies, we’re building a portfolio of leaders and connecting them to each other.

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Kauai

To align our team with our companies’ teams - We have 12 full-time people working to help our companies succeed.

To support future entrepreneurs - Exits provide a funding stream for our program, and through that funding we can help future entrepreneurs.

In September 2016, BrightBox, whose software was originally built for automated commissioning, performance optimization, and M&V for HVAC in buildings, announced they were acquired by NEXTracker and will be applying these same tools to the commercial PV market.

Our portfolio companies donate 1–6% equity to our nonprofit upon selection. Why?

Acquired by Daimler shortly before receiving an EEx acceptance letter, and later rebranded to Moovel.

Assets were acquired by energy storage company, Pathion.

1.

So how did this play out with BrightBox? Through this acquisition, we received a check for an undisclosed amount. The money is going toward running the piece of our program that makes us different from a typical grant-funding organization, where we connect entrepreneurs to customers, investors, and each other to accelerate the pace of innovation.

With this acquisition, we bring our count of acquired companies to three:

Portfolio

We learn from our companies that win BIG…

Partners Hybrid Model Pipeline

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2.

2014

2016

Acquired by NEXTracker

Selected to Energy Excelerator’s Demonstration Track

Developed technology at UC Berkeley; raised Seed round

Portfolio

…and also from those who don’t.

Partners Hybrid Model Pipeline

“You need to be unrealistically optimistic because the world is trying to crush you. But at the same time, you have to be an incredibly cynical person. You need to want to kill your own idea. You have to want to poke holes in it. Where you can’t poke holes in it is where you get validation.”

Ballast Energy was reducing the cost of lithium ion batteries through innovation in the production process and, in January 2016, decided to wind down its operations.

Closed the doors on Ballast Energy and is now leading the product team of another energy startup

Interviewed dozens of end users and customers to build out customer strategy on the Go-to-market Track

Raised family & friends round, built prototype, and set up a lab in Oakland, CA

Looking back, Bryan Ho (CEO of Ballast Energy) shares two key takeaways:

“We were too wedded to our technology. It was our baby and we wanted it to succeed. Therefore we weren’t critical enough in the early days.… Subconsciously, we were afraid of what we would find if we dug into it.”

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1.

2.

2011

2016

And we celebrate milestones achieved along the way.

Follow-on funding Average per company

Industry average

$5.5M

$4.4M

$7M Series A from an unnamed family office & Shell Technology Ventures

$15M from Mithril Capital

Received investment from 1776, an incubator in Washington D.C. and one of our pipeline partners

Selected by Wells Fargo for its innovation incubator

Closed $16.6M Series B from Constellation Technology Ventures, E.ON, and RWE

$4.4M Series B led by IoT company, MediaTek

Portfolio Partners Hybrid Model Pipeline

Portfolio companies that have recently closed rounds of funding

The next page was inspired by

my drawing.

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Raised $5M Series A from Anthemis Group and ENGIE

Seed

Series A

Pre-seed

Series B

Series C

Inactive/productively failed

$204 M of investment opportunity over the next 18 months

$6.4 M average increase in valuation per company

Entering EEx

How are our companies growing?

Portfolio Partners Hybrid Model PipelineAcquisition

Today: 1-3 years later

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C’mon, let me introduce you to

some of my friends.

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Portfolio Partners Hybrid Model Pipeline

Energy Excelerator Interactive at X: The Moonshot Factory  (formerly known as Google[x]) in Mountain View, CA

In April, we gathered 150 investors from all corners of the Asia Pacific to meet our companies in Silicon Valley.

Bryan Ryan VP of Business Development, Vector

📍Auckland, New Zealand

Joyce Chung Partner, Garage Technology Ventures

📍 Los Altos, CA (originally from Honolulu, HI)

Marianne Wu Sr. Managing Director,

GE Ventures

📍San Francisco, CA

Geoff Eisenberg Principal, Ecosystem

Integrity Fund

📍San Francisco, CA

Alden Woodrow Makani Power, an Alphabet Company

📍Mountain View, CA

We invested even more time in 2016 bringing together our portfolio companies and leaders from across the industry who can help them scale.

Portfolio Partners Hybrid Model Pipeline

1st corporate partner

1st international partner

1st international utility partners

New Zealand’s largest

distributor of electricity

World’s 4th largest utility

Made a $30M commitment to our program

2013 - 2014

2015

2016

Office of Naval Research

+

Providing $4M of software for our companies

Providing up to $100k of web services per company

What does it mean to be a Global Partner? 1. Access to Energy

Excelerator’s pipeline of innovation

2. First dibs on demonstration project partnerships

3. Access to our network of investors, corporates, and influencers

Portfolio Partners Hybrid Model Pipeline

Global utilities are looking to innovation to help shape the future of their business.

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In Q1 and Q2 2016, two more joined our Global Partner program, alongside such leaders as the U.S. Navy, the Department of Energy, GE, DENSO, Hawaiian Electric Industries, and others.

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Portfolio Partners Hybrid Model Pipeline

We launched our first international demonstration project.

Location: Victoria International Container Terminal at the Port of Melbourne

EEx Demonstration Project: 350 high-efficiency plasma lights to illuminate an area of 350,000 square meters + Bright Light Management System to optimize lighting for the terminal and reduce maintenance costs

Vector is New Zealand’s leading multi-network infrastructure company which delivers energy and communication services to more than one million homes and businesses across the country.

Largest utility in Japan serving more than 27 million homes and businesses. Worldwide the company has more than 63 subsidiaries and affiliates in 8 countries.

Global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics, information, and

safety. Its customers include all the world's major carmakers.

21 demonstration projects across 4 Hawaiian islands and our first international project in Australia

First Philippine Holdings Corporation (FPH) is a management and investment company with

interests in power generation and property development. With FPH’s commitment to never invest in another coal plant, they are positioning themselves

as the renewables leader of the Philippines

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This one time I found a creature in our backyard

that was a hybrid between a lizard and a dragon.

It was so cool!

Portfolio Partners Hybrid Model Pipeline

Portfolio Partners Hybrid Model Pipeline

Energy Excelerator non-profit | dual-track program

85% Public funding

4/5 of which goes directly to companies

14% Private funding

$3M1% Company equity

30% carry

Our hybrid model customized for energy and impact startups.Our seed funding comes from the U.S. Department of Energy and the U.S. Navy. Now, we’re experimenting with new innovative funding structures to fuel company growth. We added a for-profit venture fund to create a hybrid, non-profit/for-profit model.

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The fund is based on a 0/30 model; there is no management fee, and 30% of the fund's profits go to support our non-profit side (the other 70% of profits go to our investors).

EEx Fund One for-profit | follow-on venture capital fund

We wrote about why we raised a fund as a nonprofit on medium. medium.com/energyexcelerator

For us, EEx Fund One is about expanding the kinds of capital we provide to companies, and accelerating the fundraising process for our fastest-growing portfolio companies. To be eligible, companies must be an Energy Excelerator portfolio

company and have raised at least $300,000 of investment from a single, arms-length investor.

Our investors are proof that innovation is common ground.

Supporting partner:Individual investors

After officially closing the fund in April, EEx Fund One has already made its first investments.

We added a VC fund.

Portfolio Partners Hybrid Model Pipeline

EEx Fund One for-profit | follow-on venture capital fund

$3M

Mahalo (thank you) to our Board of Managers!

Andrew Beebe Jerry Mount Chairman of the Board

Joyce Chung Larry Gilbert Michael Hosokawa Mark Takahashi Tom Baruch

Want to hear a joke? How did the farmer find his lost cow?

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TerViva (who partnered with Kunoa Cattle Company in their proposal) were awarded $250K to test cattle grazing on TerViva’s pongamia orchard. Kunoa cattle will graze on vegetation that grows between rows of pongamia trees and will eat cattle feed produced from the pongamia seeds. This project will assess the feasibility of both the downstream market for cattle feed from pongamia seeds as well as how cattle can be used instead of a diesel tractor to maintain the orchard intercrops.

We did this to increase engagement and collaboration amongst our portfolio companies. The results?

🌳 🐄 🌳 🐄 🌳 🐄 🌳 🐄 🌳

We received 10 proposals from 13 companies. Our portfolio companies voted and selected TerViva as the first recipient of our $250K Ohana* Award.

While our team usually picks companies and is involved with designing their initial projects, we believe that our biggest knowledge resource rests within our companies and we want to tap the power of their experience.

And tested peer-selected funding awards.

Portfolio Partners Hybrid Model PipelineHe tractor

down!

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Our friends at Village Capital pioneered the peer-to-peer funding model. Over the past 5 years, VilCap graduates have reached 6 million customers, created over 7,000 jobs,

and raised more than $110 million in follow-on capital and 93% of its portfolio companies are still in business.

*Ohana is the Hawaiian word for family

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Each year, Energy Excelerator reviews hundreds of applications, taking in 12-15 at the end of the

review process. Whoa, that’s more than I can count!

Portfolio Partners Hybrid Model Pipeline

“Energy is no longer winner take all.”

15% women CEOs & co-founders

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46% executives with

prior exits

382 companies took the first step to apply & 147 continued through our application process. The most interesting data from those 147 can be found below.

startups with tools to bridge the gap between innovation and policy: an uptick from last year

65% from investor,

CEO, or partner referrals

$1.6M average outside

funding per company

8% international startups

Portfolio Partners Hybrid Model Pipeline

12% Hawaii-based startups

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A theme at Aspen Clean Energy Innovation Forum, July 2016

. . / 0 1

2 3 4 5 6

⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐ ⭐

⭐ ⭐ ⭐

🌺 🌺 🌺 🌺 🌺 🌺

🌺 🌺 🌺 🌺 🌺 🌺 🌺

🌺 🌺

🌺 🌺🚪 🚪 🚪 🚪 🚪 🚪 🚪

🚪 🚪 🚪 🚪 🚪 🚪 🚪

🚪 🚪 🚪 🚪 🚪 🚪 🚪🚪 🚪 🚪 🚪 🚪 🚪 🚪

📃 📃 📃 📃 📃

🚪 🚪 🚪 🚪 🚪 🚪 🚪

🚪 🚪 🚪 🚪 🚪 🚪 🚪

🚪 🚪 🚪 🚪 🚪 🚪

🚪 🚪 🚪 🚪 🚪 🚪 🚪

🚪 🚪 🚪 🚪 🚪 🚪

How can we support the next generation of innovators to solve the world’s biggest problems?

“I had just finished graduate school and wanted to work in clean energy feeling compelled to do something about climate change, but I did not have much experience outside of school. The Energy Excelerator team has provided me with networking, publication, and speaking opportunities that have helped me become a leader. I am so grateful to have a job that is challenging, rewarding and impactful, and where I get to be creative and be part of a community that is changing the world.”

Sara Cobble, COO Pono Home Pono Home provides residential and light commercial efficiency services based on a 200-point checklist to improve energy and water efficiency. Through their comprehensive greening service, Pono Home conducts maintenance and implements energy and water efficiency changes on the spot. The company's Energy Excelerator demonstration project is deploying this service in 5,000 low-income housing units on Oahu.

Pono in Hawaiian means righteous, fair, and just.

Hired as Pono Home’s first full-time employee

2014

1 of 10 RISE (Rewarding Internships in Sustainable

Employment) fellows placed at 10 different Energy Excelerator

companies

Completed graduate school at Hawaii Pacific University wanting to work in clean energy

2014 2014

Named COO at Pono Home

2015

Currently 51 interns/fellows supported by

Energy Excelerator and its portfolio

companies

This is my friend Sara. I hope I can grow up to be like her one day, but I’m

mostly focused on making it to 4 years old.

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Portfolio Partners Hybrid Model Pipeline

Our team has deep experience in energy, policy, startups, and building vibrant communities.

Go-to-market Track

Partnerships

Demonstration Track

Pipeline

Dana Cotter Demonstration Track

Warren Doi Go-to-market Track

Jill Sims Co-founder & Demonstration Track

Dawn Lippert Co-founder &

Director

Ramsay Siegal Startup Scout

Lori Makiya Events &

Operations

Shawn Moorhead Events & Operations

Lauren Tonokawa Communications

Melissa Uhl Policy &

Partnerships

Heather Richman Strategic Partnerships (based in Silicon Valley)

Brad Punu Strategic Partnerships

Ryan Kushner Communications & Partnerships (based in San Francisco)

Aki Marceau Demonstration Track - Project Design & Partnerships

25Community Building

There so much more cool stuff I didn’t get

to show you so…

World leaders in policy & tech made climate change a top priority #COP21

Two leaders in our industry wrote open letters sharing lessons we learned from.

David Krane’s farewell letter to NRG employees

Kirk Coburn’s Dear John letter to the SURGE community

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📝

📝

Greentech Media’s Editor-in-Chief, Eric Wesoff, started writing “Letter from Sandhill Road”, where he takes us inside the minds of energy investors.

A quote from one of our close friends and an EEx Fund One investor that speaks to our evolution as an organization:

“To change the world, you first have to change yourself.”Duane Kurisu, CEO of AIO Group

Here are some trends we’re tracking & a few leaders we’re learning from.

Demonstration Kickoff Week 📍 Honolulu, HI

COP22 (Conference of the Parties / Global Climate Talks) 📍 Marrakech, Morocco

Announcement of our 2017 cohort

Go-to-market Kickoff Week 📍 Honolulu, HI

Applications open for our 2018 cohort 🌐 energyexcelerator.com/apply

VERGE Hawaii 📍 Honolulu, HI

Find all of our events at energyexcelerator.com/events Follow us on Twitter, Facebook, and LinkedIn for updates!

Where will you find us next?

For me, it’s back to pre-school, Japanese class, and the beach #startupparadise

October 2016

November 2016

January 2017

February 2017

Spring 2017

June 2017

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That’s it! The last time I was in the office, Uncle Ryan (Kushner) taught me a cheer.

He uses it to end Energy Excelerator’s team meetings every Monday. You start

with your hands outstretched to your sides and, as you clap them together, you say

“Waaaaabam!” Are you ready for it? Here it goes.

Waaaaabam =!

Energy Excelerator energyexcelerator.com | @energy_excel Honolulu, HI

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Energy Excelerator is a program of the Hawaii-based nonprofit, the Pacific International Center for High Technology Research.

Credits & Mahalos

Emoji use > inspired by Andrew Beebe’s VERGE Hawaii 2016 talk

Managing Director, Obvious Ventures

Narrator: Grayson Sims Guest appearance by Parker Sims

To everyone who has committed their time, talent, insight, or friendship to this ecosystem, MAHALO!

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