13 0723 session 1 & 2 webinars

Cleantech Open
2013 Webinar Series
Tuesday, July 23, 2013

2 Cleantech Open Confidential Information – All Rights Reserved
Welcome to the National Webinar Series
• With the Cleantech Open since 2007
• Mentor Chair 2007 - 2008
• Executive Director 2008 - present
MC:
Rex Northen,
Executive Director, Cleantech Open

Global Partner

National Sponsors

Thank You To All Our Sponsors!

The Summer Program – July – September 2013
Date Time
(PDT)
Session I – Worksheets Time
(PDT)
Special Topic Sessions
7/9
1:30 to
2:30pm
Business Model Canvas (Review)
2:45 to
4:00pm
LaunchPad Central (Review)
7/16
1:30 to
2:30pm
Product/Market Fit
2:45 to
4:00pm
Systems Review, PR 101
7/23
1:30 to
2:30pm
Markets and Getting to Them
2:45 to
4:00pm
Term Sheets
7/30
1:30 to
2:30pm
Product/Technology Validation
2:45 to
4:00pm
Alternative Sources of Funding - Grant
Writing / Crowd Sourcing
8/6
1:30 to
2:30pm
Financials Analysis & Planning
2:45 to
4:00pm
IP Licensing from 3rd Parties
8/13
1:30 to
2:30pm
Legal Environment, Issues and Risks
2:45 to
4:00pm
Cap Tables
8/20
1:30 to
2:30pm
Management Team
2:45 to
4:00pm
Working with the Utilities
8/27
1:30 to
2:30pm
Sustainability
2:45 to
4:00pm
Tell Your Story, Sell Your Story
(Communicating value to stake holders)
(9/11)
1:30 to
2:30pm
Investor Presentation
Mentor Assessment
2:45 to
4:00pm
Mock Judging, Regional Awards, Global
Forum

Session 1: Markets and Getting to Them
1:30pm – 2:30pm, PDT
• 30 year technology industry veteran, having run global
businesses based in USA and Asia
• With University of Phoenix for 30 years
• Currently a practitioner Lead Faculty for Strategy in the School of
Business
Speaker:
Niraj Kohli
President, CSC

Cleantech Open
By Niraj Kohli - University of Phoenix

Cleantech Open
Webinar 3 – Markets and Getting to Them
KEY
TRENDS
MARKET
FORCES
MACRO-
ECONOMIC
FORCES
Copyright © 2013 University of phoenix. All rights reserved. Reproduction in copies, distribution to others,
preparation of modified or derivative works, or sublicensing others without express written consent of
University Phoenix is prohibited.
University of Phoenix webinars include content from: businessmodelgeneration.com and from Business
Model Generation: A Handbook for Visionaries, Game Changers, and Challengers [ISBN: 978-0-470-
87641-1] by Alexander Osterwalder and Yves Pigneur, (hereafter referred to as the “Work”). Copyright ©
2010 by Alexander Osterwalder and Yves Pigneur. All rights reserved. Used by arrangement with John
Wiley & Sons, Inc. Unless John Wiley and Sons, Inc.’s (“Publisher”) express prior written permission is
obtained, it is prohibited to (a) remove or alter the author’s name, Publisher’s copyright notices, or other
means of identification or disclaimers as they appear in the Work; (b) make electronic copies of the Work
other than as permitted pursuant to Section 1.1 of Agreement between Publisher and Apollo Group, Inc.
“(Apollo”); (c) mount or distribute any part of the Work on any electronic network (including without
limitation, the Internet and the World Wide Web) other than the Sites; (d) use all or any part of the Work for
the purposes of monetary reward by means of sale, resale, loan, transfer, hire, or other form of distribution
of the Work; (e) distribute the whole or any part of the Work to anyone other than Authorized Registrants (as
defined in the Agreement between Publisher and Apollo; (f) publish, distribute, or make available the Work,
works based on the Work or which combine it with any other material, other than on the Sites as expressly
permitted in this Agreement between Publisher and Apollo.

This webinar is a 60-minute meeting
presented as part of the Cleantech Open,
which focuses specifically on the Markets
and Getting to Them
Cleantech Open Webinar
by University of Phoenix

Agenda
o Value Creation from Factory to Field through AKA
 15 minutes
o Mapping Customer Buying Process
 10 minutes
o Market Size and Growth Rate – Near and Long Term along with Market Infrastructure Discovery
 15 minutes
o Pilot Customer Development and Repeatable Sales Model
 10 minutes
o Questions
 10 minutes
Cleantech Open

Cleantech Open
Markets and Getting to Them Worksheet and Judging Criteria
Worksheets
• Customer Buying Process
o Current Solutions?
o Purchase Decision Process?
o Partners? Channels? Influencers?
• Market Size and Growth Rate – Near and Long Term
• Market Infrastructure Discovery
o Competitors, Alternative Solutions
o Forces, Trends Affecting Growth
• Pilot Customer Development
• Repeatable Sales Model
Judging Criteria
• Is the sequence of target markets and the path to them clear and defensible, and is the potential market large enough
for a successful startup to have a major environmental and economic impact?
• Does the cumulative size of the target markets represent an attractive opportunity appropriate to the funding strategy?

Value Creation through Markets and Getting to Them
Focus on Factory to Field and Awareness, Knowledge and Action (AKA)
What is 50/30/20 rule?
Cleantech Open

(VP)
VALUE
PROPOSITIONS
(CH)
CHANNELS
(CR)
CUSTOMER
RELATIONSHIPS
(CS)
CUSTOMER
SEGMENTS
(R$) REVENUE STREAMS(C$) COST STRUCTURE
(KP)
KEY
PARTNERSHIPS
(KR)
KEY
RESOURCES
(KA)
KEY
ACTIVITIES
Customer view – Front StageOperations view- Back Stage
Economics view – Business Performance Stage
businessmodelgeneration.com
Cleantech Open

Value
Propositions
Customer
Segments
Cleantech Open

Mapping Customer Buying Process

© Copyright 2013 EcoFactor. All Rights Reserved. Confidential
Inefficiency Throughout The Day, Everyday
slide #6

Existing utility partner
Comcast coverage
Current Customers and Their Service Territory
• 530K customers
• 6th largest municipal
utility in the U.S.
2.4M total customers
2.2M electricity customers
23M customers
Access to distribute
EcoFactor services to
30M+ customers
1M customers in Texas
slide #3

• Customers announced:
• Revenue model
• SaaS
• Monthly service fees
• Ten (10) patents and issued, many more pending
• VC funded: $17M to date, founded in 2006
About EcoFactor
slide #2

Cleantech Open
Webinar 3: Markets and Getting to Them
Are there any questions?

Market Size and Growth Rate – Near and Long Term
Market Infrastructure Discovery

Cleantech Open
KEY
TRENDS
MARKET
FORCES
INDUSTRY
FORCES
MACRO-
ECONOMIC
FORCES
http://www.businessmodelgeneration.com/

Cleantech Open
Market Forces
MARKET SEGMENTS
NEEDS AND DEMANDS
MARKET ISSUES
SWITCHING COSTS
REVENUE ATTRACTIVENESS
MARKET
FORCES
- Market Analysis -

Cleantech Open
Economic Infrastructure
Describes the economic infrastructure of the market in which your business operates

Cleantech Open
Global Market Conditions
Example:
The Recovery Act
• The Recovery Act provides appropriations for projects and activities that are related to transitioning the economy to
clean energy with a total investment of over $90 billion.

Cleantech Open
Industry Forces
SUPPLIERS AND OTHER VALUE
CHAIN ACTORS
STAKEHOLDERS
COMPETITORS
(INCUMBENTS)
NEW ENTRANTS
(INSURGENTS)
SUBSTITUE PRODUCTS
AND SERVICES
INDUSTRY
FORCES
- Competitive Analysis -

Cleantech Open
Competitors (Incumbents)
Identifies incumbent competitors and their relative strengths

Cleantech Open
Competitors (Incumbents)
Questions to ask:
• Who are our competitors?
• Who are the dominant players in our particular sector?
• What are their competitive advantages or disadvantages?
• What are their main offers?
• Which customer segments are they focusing on?
• What is their cost structure?
• How much influence do they exert on our customer segments, revenue streams, and margins?

Cleantech Open
Competitors (New Entrants)
Identifies new, insurgent players and determines whether they compete with a business model different
from yours

Cleantech Open
Substitute Products and Services
Describes potential substitutes for your offers, including those from other markets and industries

Cleantech Open
Substitute Products and Services
Questions to ask:
• Which products or services could replace ours?
• How much do they cost compared to ours?
• How easy is it for customers to switch to these substitutes?
• What business model tradition do these substitute products stem from (e.g., high-speed trains versus
airplanes, mobile phones versus cameras, or Skype versus long-distance telephone companies)?

Cleantech Open
Suppliers and Other Value Chain Actors
Describes the key Supply and value chain incumbents (Physical and Electronic) in your market and
spots new emerging players

Pilot Customer Development and Repeatable
Sales Model

Cleantech Open
Pilot Customer Development
o Start with a Lead Customer in terms of Development
o Who are you targeting?
o What is the Segment?
o How do you plan to get there?

Cleantech Open
Repeatable Sales Model
o Direct – ecommerce, Personal Selling
o Indirect - Retail - Online (Amazon)
- Offline (Apps)
o Indirect – Distributors (Ownership of Product)
- Reps (Commission basis) though removed from the customer
o Component of bigger System - Private Labeling and let someone else sell

Cleantech Open
Repeatable Sales Model
o Key Factors that should guide your Go to Market Strategy
 Deal Size / Product Margin
 Percentage of Whole Product
 Solution Complexity
 Credibility and Brand
 Local Knowledge
 Time to Market
 No of Target Customers

Cleantech Open
Markets and Getting to them
What is your plan?

Accelerating Your Business
Live and Breathe the Worksheets

Worksheet Work – Week 7/23 - 7/30
• Business Model Canvas and Value Chain Diagram – continue
working on this
– Competitors / Competitive Advantage / Why You?
• Product/Market Fit – Continue Customer Interviews
– Pre-revenue and post initial revenues
• Getting to Market
– Define, characterize and size your Market
– Identify first $1m Market
– Validate your customer
• Product & Technology Validation or Path to Same – start
validating through your customer discovery process

TEAM FOCUS FOR WEEK OF AUGUST 1
Prepare for Business Clinics
Address Product/Technology Validation Worksheet (Wiki)
Complete Product/Market Fit Worksheet (Wiki)
Complete Business Model Canvas and Worksheet (Wiki)
Complete Markets and Getting to Them Worksheet (Wiki)
Begin (or continue) to develop Financials Worksheet (Wiki)
Contact Your Mentor or Regional Mentor Chair With All Questions

Session 2 will start at 2:45pm PDT
3:45pm MDT, 4:45pm CDT, 5:45pm EDT

Session 2: Term Sheets
2:45pm – 4:00pm, PDT
Speaker:
Julio E. Vega
Partner, Bingham
Speaker:
William S. Perkins
Partner, Bingham

Term Sheet
Fundamentals:
William S. Perkins, Partner
Julio E. Vega, Partner
CleanTech Open
National Academy
July 23, 2013
A Play in Three Acts

CAST & SETTING
Entrepreneur..................................................................Will Perkins
Will, an engineer by training, spent many years in the labs of a large technology company. He is now
leading a group of his former work colleagues into a new clean-tech venture. Having spotted the
growing interest in electric cars, Will and his team have developed a product that sits between the
power source (i.e., home wall plug) and car charging port that speeds charge times by 30%-50% in
early lab tests. SpeedyCharge needs $500,000 -- 750,000 to develop a prototype and place it with a
local electric car club who have agreed to beta test it.
Angel Investor.................................................................Julio Vega
Julio, a lawyer by training, now spends his time investing in early-stage growth companies as an
angel and with his group of old friends functions almost as an angel fund.
Setting
Having been introduced by a mutual connection, Julio and Will are meeting for the first time at a local craft
beer hall to review terms for an angel investment round led by Julio. Prior to this meeting, Julio and Will had
a long “meeting” (WebEx) where Will walked Julio through his slide deck and business model for
SpeedyCharge. Julio indicated a willingness to invest, but Julio wanted to meet will in person to negotiate
out terms.

ACT I
The Meeting
Will and Julio meet at The Beer Garden and jump right into their negotiation. Things quickly turn to
valuation...
Key Terms*
• LLC [__]
• Corporation [__]
• Founders [__]
• Valuation [__]
• Cap Table [__]
• Pre-money [__]
• Post-Money [__]
• Convertible Notes [__]
• Preferred Stock [__]
*Engineered for Term Bingo! Play along...

ACT II
The Meeting
With valuation and the structure/type of security set, Will and Julio turn to other terms and topics...
Key Terms
• Option Pool [__]
• Participating [__]
• Dividends [__]
• Anti-dilution [__]
• Pre-emptive rights [__]
• Blocking rights [__]
• Protective provisions [__]
• Vesting [__]

ACT III
The Meeting
Things are wrapping up...
Key Terms
• Board seat [__]
• Observer [__]
• Information [__]
• Drafting [__]
• Counsel [__]
• ROFR [__]
• Co-sale [__]
• Drag [__]
• Expenses [__]

Term Sheet Fundamentals:
What to worry about tomorrow
• Dividends (and when they matter)
• Conversion
• Anti-Dilution Protection
• Redemption
• Protective Provisions
• Investor Rights/Covenants
• Founder Stock
• Exclusivity
• Binding

Other Resources
• The National Venture Capital Association‟s “„template‟ set of model
legal documents for venture capital investments” are available at:
http://www.nvca.org/index.php?option=com_conten
t&view=article&id=108&Itemid=136
• The model documents, while instructive and prepared with helpful
annotations, are no substitute for a thorough discussion/translation
by your own counsel

What People are Saying about Us...
Recognized by Chambers
USA as having a “„stellar‟
corporate team” that
produces “work of an
„extremely high quality‟” as
well as noted for having
“broad geographical client
reach”
-Chambers USA
“Bingham McCutchen
has long housed some
impressive project
finance experts, and the
firm itself is now
achieving more
recognition, especially
for its work in renewable
and alternative energy.”
-Chambers USA
“Noted as one of the
largest environmental
groups in the
country, “clients‟
would recommend
them without a
doubt.”‟
-Legal 500
2008 Deal of the Year by
Project Finance Magazine
2010 Best Renewables Deal
by Power Finance & Risk
2008 Americas
Renewables Deal of the
Year by Project Finance
International
Nominated for Deal of the
Decade by Infrastructure
Journal
Noted as a Top Ten United States
Cleantech Law Firm of 2011 by
CleanTechies.com

Representative CleanTech Clients

Will Perkins
Will Perkins concentrates his practice on general corporate matters and licensing matters, with an
emphasis on strategic investments, mergers and acquisitions, structuring and financing new
ventures, and public and private offerings of securities, including representation of both financial and
strategic buyers. He represents both public and private companies, as well as private equity funds, in
a wide range of transactions including venture capital financings; in-licensing and out-licensing
transactions; product manufacturing and distribution arrangements and initial public offerings and
follow-on public offerings of equity and debt securities.
Julio Vega
Julio Vega concentrates on corporate and securities law, with an emphasis on venture capital
transactions, mergers and acquisitions, public offerings such as IPOs, joint ventures, strategic
alliances, and licensing transactions. He represents emerging growth companies and established
businesses in all areas of technology, including advanced materials, biotechnology, e-
commerce, nanotechnology, networking, software and telecommunications. Julio regularly counsels
startups on equity-based compensation matters, equity finance strategy, executive employment
arrangements, general business strategy and other general corporate issues. He has also
represented venture capital firms in connection with portfolio company investments.

William S. Perkins
Partner
617-951-8574
william.perkins@bingham.com
Thank You
and
Good Luck!
Julio Vega
Partner
617-951-8901
julio.vega@bingham.com

Reminders
• Work on your worksheets – keep up each week, it will make it
easier
• Complete webinar survey you will automatically receive from
Webex – we want your feedback
• Next webinar is Tuesday, July 30th
– Check your Accelerator wiki http://wiki.cleantechopen.com/accelerator-
wiki/2013-webinars/ for updates on webinars
– Session 1: Product & Technology Validation - 1:30pm to 2:30pm, PDT
• Speaker: Niraj Kohli, President, CSC
• Be sure to send in your top 3 expectations you have for the next
worksheet webinar. Link is in the July 30th Session 1 webinar
– Session 2: Alternative Sources of Funding: Grants - 2:45pm-4:00pm, PDT

13 0723 session 1 & 2 webinars

13 0723 session 1 & 2 webinars

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