by Greg Neichin
| February 28th 2013
(if you don’t make it to the end of this article and just want to know where the party is, it’s March 18th-20th in San Francisco, you can register here)
It is quite fashionable these days, especially amongst those in and around Silicon Valley, to talk about the demise of cleantech. This discussion has always seemed silly to me.
There are only two groups fascinated by this dialogue: (a) US investors who were burned in deals that they likely should not have touched in the first place and (b) industry pundits & consultants with too much time on their hands. Both of these groups are frustrated and vocal, so they create substantial noise, but far less signal.
As Khosla Venture’s Andrew Chung recently said, in a thoughtful piece by Katie Fehrenbacher covering the “cleantech is dead” meme, “venture is a highly cyclical business”. You could say that again. Andrew continued, “we expect sustainability investments to experience a renaissance as today’s breakthrough companies successfully commercialize and have massive impact on society’s infrastructure.”
Call it sustainability investments, energy tech, resource tech, cleantech, or greentech. Call it whatever else you want to call it, just don’t call it …
| December 3rd 2012
I spent Thanksgiving week traveling through Thailand. It was my first trip there, and hopefully not my last – the country is amazing! I love the people, the culture, the food, the views….and the free bottled water? Yes, you read that correctly – free bottled water. In Thailand, it is standard to receive 2-3 complimentary bottles of water in your hotel room, despite assurance from the government that the tap water is safe to drink. As most tourists do, I erred on the side of “better safe than sorry”, and took the bottled water. Though I must admit, I was somewhat ashamed to do so.
Isn’t the tap water in Thailand subject to WHO guidelines for drinking water quality, which would ensure that I am protected from harmful contaminants? Doesn’t the organization pride itself on “producing international norms on water quality and human health in the form of guidelines that are used as the basis for regulation and standard setting, in developing and developed countries world-wide”? Indeed it does, but I overlooked the difference between a guideline and a requirement – an extremely important distinction. Guidelines are mere recommendations or targets that help ensure the quality of …
by Whitney Michael
| August 9th 2012
Analyst Troy Ault explains why we chose Aqwise to be the company of the week:…
by Richard Youngman
| June 28th 2012
This week, one year ago, it was announced that ABB had acquired Epyon, a developer of fast-charging technology for electric vehicles. Following on from BASF’s acquisition of Inge, Alinda’s acquisition of agri.capital and Samsung’s of Liquavista, the M&A wave of venture-backed European cleantech companies we’d all been waiting for seemed to be happening. A year on – we are still waiting. It proved a false dawn, but surely, actually, some kind of a postponed dawn.
We have spent some weeks, with Richard Cave-Bigley as our project lead, analysing the state of the market and discussing this stand-off between potential buyers and sellers with many corporate representatives (in both M&A and venturing teams), venture firms, Limited Partners, and other market agents (such as lawyers, brokers and corporate finance advisors).
Here are some of our key impressions, detailed in a fuller research report we have released to our i3 subscribers today:
Something has to give soon (the title of the report). Many cleantech venture funds, with 2005-2007 vintages are in their divestment periods, with many more following on close behind. Such fund managers are trying to strike a delicate balance. On the one hand, they wish to time exits …
by Greg Neichin
| May 18th 2012
Given the pace at which the business world moves these days, there is often not enough time for thoughtful reflection. It can be all too easy to get lost in last week’s meetings and next week’s deadlines and to completely miss the forest for the trees. With the amount of information that we all try to consume on a daily basis, it is easy to mistake a headline for a trend, hyperbole for fact.
Luckily, that’s where we come in. Consider us your “Outsourced Reflection”. Every quarter, for the past 7 years, we have published a comprehensive quarterly manifesto – Cleantech Group’s Quarterly Investment Monitor. Frankly, I think that this exercise is more important than ever. As we wrote in opening this edition:
2012 has started on a similar note [to the end of 2011] with a rising number of cleantech companies funded despite a continuing public and media fascination with the sector’s high profile failures. In responding to erroneous press accounts of his own death, noted American author Mark Twain once wrote, “the reports of my death are greatly exaggerated.” The same could be said of cleantech.
If all you read in the last three months was news of …
by Greg Neichin
| March 5th 2012
Most of us are well aware of the problem. The world’s population is moving faster than ever into urban areas – 75% of the world’s people will be crammed into cities by 2050. Many cities are already bursting at the seams and in the decades ahead we will face increasing resource shortages as we struggle to keep up with the basic power, water, waste, and transportation demands of these emerging mega-cities. These are challenges on a truly epic scale.
Not to worry you say, there’s an app for that!
As they have in industry after industry, information technologists are rushing to the rescue heralding the age of the smart city. There are glowing editorials devoted to the promise of “Big Data” and how, with enough computing power (fueled by renewable energy of course!) we’ll be able to analytically crunch our way out of these problems.
New York City has received praise from the digerati for the city’s BigApps contest where public data is being made available for curious and motivated web developers. Last week, the good people at the TED Prize announced that this year’s $100K award will be split up amongst the 10 best, individual ideas for empowering …
by Greg Neichin
| March 1st 2012
Over the past twelve months it has become quite in vogue, to the point of cliché, to discus the importance of partnerships to the development of the cleantech sector. What started out as a handful of initiatives by major equipment manufacturers, utilities, and service providers to better engage with early stage companies has now become a full fledged movement of cleantech partnership gospel.
If partnerships are indeed the new cleantech religion, we’re about to host the year’s biggest revival in San Francisco. Appropriately themed, The Power of Global Partnerships, our upcoming Cleantech Group Forum, March 26-28, will bring together corporate executives, investors, and entrepreneurs from around the world to discuss why the power of partnerships is not an empty pleasantry, but rather an indispensable guiding mantra for company’s both large and small.
If you have not yet registered or you are still a skeptical, non-believer who thinks that all of this talk of partnerships is nice and fuzzy, but doesn’t have real tactical bite, here are my top 5 reasons, why partnerships really, truly, sincerely-I-swear, matter to the growth of the cleantech sector.
1) Partnerships bring access to customer relationships: Most cleantech markets are brutally hard to enter. …
by Sheeraz Haji
| February 9th 2012
The cleantech boom went bust! Solar is dead. Climate change is a hoax. We have all heard the doom and gloom. If you only read these sensationalist headlines you might think cleantech is dead.
Don’t believe the hype! Cleantech did not implode. While 2011 was a challenging year for cleantech, the industry continued to grow and there’s plenty to look forward to in 2012. With all the noise, you might not have realized how quickly solar installations are growing around the globe. For example, in the US solar installations grew more than 65% year-over-year. National and local governments are embracing cleantech like never before as they search for ways to stimulate their economies. Even though a number of venture funds have struggled, we saw global cleantech venture flows grow 14% to $9 billion last year.
Global enterprises invested in cleantech at record levels: Last year we tracked $41 billion in global M&A transactions in cleantech, up 153% from 2010. Big corporations from every industry and from across the globe are evolving sustainability programs into growth-oriented strategies to source cleantech innovation. French enterprises have led the way. Some groups have pursued an acquisition strategy: Schneider Electric, for example, made eight …
by Greg Neichin
| January 27th 2012
If you are in the cleantech sector and had not previously heard about Lanzatech, you likely have now. The company raised a big, $55.8M round last week that has been widely applauded and covered. Students of the company had seen this coming for awhile. Lanzatech was the highest ranking company in the Asia Pacific region in our Cleantech 100 survey earning it “APAC Company of the Year” at our gala banquet last year. It was featured as part of GTM’s Trendspotting post on the Top 12 Greentech Startups to Watch in 2012. We’ve made Lanzatech our featured “Company of the Week” in i3 this week, but it may just turn out to be cleantech’s company of the year (and its only January!). Here are the top reasons that I think Lanzatech exemplifies a number of key themes happening in cleantech:
1.) Cross-Border Financings – I have previously written about Chinese and Korean investors taking large stakes in Western cleantech companies. Now we can add the Malaysians to that list. The round was led by the Malaysian Life Sciences Capital Fund and included participation from Malaysian state oil company, Petronas. With the US venture community still experiencing …
by Greg Neichin
| January 23rd 2012
On the same weekend that the Giants broke the 49ers hearts, Sunil Paul playfully added some insult to injury in the bicoastal rivalry by declaring, “New York has stepped up with an event [cleanweb hackathon] that is, dare I say, bigger than San Francisco.” And while, as a true bicoastal executive, I have no interest in stoking the cliché Silicon Valley v. Silicon Alley fire, we can safely say that New York represented this past weekend.
The New York cleanweb hackathon organizers, which included Sunil, Blake Burris of Dynamo Labs, Micah Kotch from NYC ACRE, Nicholas Eisenberger of Pure Energy Partners, Matt Solt of Civvic, and a number of others, put on a great show and took a big step forward in evangelizing the cleanweb movement. Judging by the turnout, the “cleanweb”, the increasingly popular term for applying IT solutions to global resource constraint problems, is a hit amongst the East Coast digerati (even meriting an appearance by NYC’s trendminting venture capitalist Fred Wilson, who had previously cast off cleantech as an entirely separate form of VC).
There were a number of awards presented at the end of the event to standout teams (check …