On December 2nd, 2010 the Michigan Energy Forum will present its Year in Review discussion panel and networking event, “Models for Generating New Energy Businesses.” The panel will provide an overview of the various clean-tech technologies discussed throughout 2010 and highlight promising points of entry for entrepreneurs and expanding businesses. The panel will discuss the confluence of attractive energy technologies, public policy shifts, and sources of private funding, as well as successful models for generating new business opportunities in the clean tech space. • What were the highlights from the last year of MEF, any updates on panelists? • What have been the most important enablers in terms of technology and public policy that we should be aware of? • What’s being funded, where is the money going? • After being inspired to generate a new clean tech venture, what are my next steps? • For audience and panelists: what do you need from the MEF in 2011 to generate traction?
3. U.S. CleanTech VC Funding
$ millions
1400
Env
1200 Energy
1000 Clean Tech
Alt Energy
800
600
400
200
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2008 2008 2008 2008 2009 2009 2009 2009 2010 2010
Source: VentureDeal
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4. 2010 Cleantech VC Investing
1st Quarter 2nd Quarter 3rd Quarter
Capital ($1.9 billion): Capital ($2.02 billion): Capital ($1.53 billion):
Transportation: $704 Solar: $811 million Transportation: $206
million Biofuels: $302 million million
Solar: $322 million Smart grid: $256 Biofuels: $186 million
Energy efficiency: million Smart grid: $163
$217 million Transactions (140): million
Transactions (180): Energy efficiency: 31 Transactions (152):
Energy efficiency: 39 deals Energy efficiency: 24
deals Solar: 26 deals deals
Solar: 27 deals Biofuels: 13 deals Solar: 19 deals
Transportation: 27 Active VCs: Transportation: 17
deals deals
Carbon Trust: 6 deals
Active VCs:
Kleiner Perkins: 4
Active VCs:
DFJ: 5 deals deals DFJ: 4 deals
Braemar, Carbon Angeleno, DFJ, Imperial Innovations,
Trust, Foundation, Khosla: 3 deals each VantagePoint, Low
Good Energies, Intel, Carbon Accelerator: 3
Nth, Rho, Sequoia, IPOs (19 for $2.31 deals each
VantagePoint: 3 deals billion) IPOs (8 for $430
each Tesla: $226 million
million)
IPOs (13 for $1.5 M&A (160) Ameresco: $87
billion)
million NASDAQ
Sensata: $569 million Amyris: $85 million
NYSE NASDAQ
M&A (197) M&A (139)
Source: Cleantech Group 4
5. Increasing Later Stage
% of total capital invested
2002 1H 2010
Early-Stage
Follow-On
Source: Cleantech Group
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6. Average Round Size
1Q 2009 2Q 2010
Early-Stage $7 million $4 million
Follow-On $14 million $22 million
Source: Cleantech Group 6
7. Closing Observations
Midwest is different:
Most cleantech VCs are coastal
Midwestern VCs more conservative
Business fundamentals drive investor interest:
Capital efficiency to breakeven
Evidence of customer acceptance
Soundness of economic value proposition
Not too reliant on regulatory drivers
Entrepreneur and team
Other investors “around the table”
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8. Contact Information
Richard Stuebi
Managing Director
Early Stage Partners
1801 East 9th Street, Suite 1700
Cleveland, OH 44114
(216) 781-4600
www.esplp.com
rstuebi@esplp.com
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