Insights into the Philly Cleantech Market, Investing, and Best Industry Blogs

Chris Williams and The Green Skeptic

Chris Williams of The Green Light Distrikt interviewed me last week about Philadelphia Cleantech scene, water, cleantech investing, and my favorite industry blogs.

He's posted the results in byte-sized morsels of audio:

Insights into the Philly Cleantech Market, Investing, and Best Industry Blogs from @Greenskeptic

Global Clean Energy Investment $243 billion; US Drops to 3rd

Once the top dog in clean energy, the United States dropped to third place in terms of investment, falling further from the top spot it held in 2008, with only $34 billion in private clean energy investments.

China continues to lead, according to a new report by the Pew Charitable Trusts, attracting a record $54.4 billion in clean energy investments in 2010 -- a 39 percent increase over 2009 and equal to total global investment in 2004. Germany saw private investments double to $41.2 billion and was second in the G-20, up from third last year.

"The clean energy sector is emerging as one of the most dynamic and competitive in the world, witnessing 630 percent growth in finance and investments since 2004," said Phyllis Cuttino, director, Pew Clean Energy Program. "In 2010, worldwide finance and investment grew 30 percent to a record $243 billion."

The good news is: investment in clean energy has bounced back from the recession, at least globally.  The question is, will the US be able to keep pace in the years to come?

That China leads will come as no surprise to readers of The Green Skeptic.  That the US is slipping further down the ladder is more disturbing to those of us who see the new green economy as a platform for our competitiveness in the global marketplace.

Related articles

• U.S. Drops To Third Place in Clean Energy Investment (blogs.forbes.com)
• U.S. drops to 3rd in clean-energy investment (scientificamerican.com)
• Clean energy investment hits record high (financialpost.com)
• U.S. drops to 3rd in clean-energy investment: Pew (reuters.com)
• China tops 'clean energy league' (bbc.co.uk)
• Does It Matter Which Nation Leads In Alternative Energy (247wallst.com)

US Venture Capital in Cleantech Grows to Nearly $4B in 2010

US venture capital (VC) investment in cleantech companies increased by 8 percent to $3.98 billion in 2010 from $3.7 billion in 2009 and deal total increased by 7 percent to 278, according to an Ernst & Young LLP (E&Y) analysis based on data from Dow Jones VentureSource.

According to the analysis released today, VC investment in cleantech in Q4 2010 reached $979 million with 72 financing rounds, flat in terms of deals and down 14 percent in terms of capital invested compared to Q4 2009.

Solar, consumer products and building materials, and electric vehicles and charging stations led the way in 2010.

Two trends that E&Y spotted are worthy of note because they contradict some of what we've heard on the street concerning energy efficiency and seed investing.

• VC investment in the energy efficiency segment dropped 9 percent from 2009 to 2010, to $688.99 million through 68 deals.  In Q4 2010, 17 deals were completed in the segment, attracting $196.63 million, a 41 percent decrease from Q4 2009. 
• Seed rounds accounted for a large number of deals, 18, for 2010, a 125 percent increase in comparison to eight seed round deals in 2009. The share of investment dollars going to second rounds increased from 18 percent in 2009 to 26 percent in 2010. Later stage deals received $2.37 billion or 62 percent of the money invested in this period.

Ernst & Young considers "cleantech" to encompass "a diverse range of innovative products and services that optimize the use of natural resources or reduce the negative environmental impact of their use while creating value by lowering costs, improving efficiency, or providing superior performance."

SOURCE: Ernst & Young



 

Review: The Hidden Cleantech Revolution by John Moore and Toby Shute

An ugly truth of the new green economy is that the energy transition away from carbon-based fuels will be slow and powered by the very fuels from which we're transitioning.  We'll be using coal, oil, and natural gas for many years to come. 

Here at The Green Skeptic we've long made the point that we need to fire on all cylinders during this long transition, but do so in a way that is less destructive, less harmful to the environment and that seeks efficiency and fosters innovation.

John Moore and Toby Shute, authors of The Hidden Cleantech Revolution share this view and extrapolate on it in their slim book subititled "Five Priorities for Securing America's Energy Future -- Without Breaking the Bank."

Moore is Chair and CEO of Acorn Energy, a holding company focused on improving the efficiency and environmental impact of the energy infrastructure, and Shute writes about energy for The Motley Fool. 

They suggest that alternative generation is "destined to have negligible impact on our energy challenges for at least two decades." (Emphasis theirs.)

Yet already available technologies can get more out of our current energy system.

Improving productivity, in addition to finding efficiencies and reducing consumption, can be accomplished, the authors argue, by using information technology to make our energy better, which means cleaner and safer, as well as less expensive and more reliable.

The authors suggest we need to get more out of the grid, oil and gas, coal, and nuclear while investing in safety, security and resilience in the energy infrastructure. 

They further postulate that our energy portfolio should be diverse, but that there is much "that is happening today without government subsidies to choose the lowest cost, lower risk and highest return investments to secure our future."

The book will anger some -- especially those who just don't believe another nuclear plant should ever be built in the US again or that coal plants can't be re-engineered to burn cleaner and more efficiently. 

But Moore and Shute make a good case in a briefing style format, backed by a deep understanding of some of the latest technologies (albeit it some technologies from companies clearly disclosed as part of the Acorn portfolio).

"Simply maintaining our electrical grid at its current capacity will soon require a $1 trillion capital investment," the authors offer. "The coal-fired plants that supply 50 percent of our electricity, for instance, on average have a 40-year life expectancy. At this writing, 70 percent of them are over 30 years old."

"Even if we set aside the enormous sums of money involved, these are not trivial concerns," write Moore and Shute. "Choices we make in the next ten years may determine the prosperity and security of our nation for the next hundred."

The book is available for free as a PDF at The Hidden Cleantech Revolution

Related articles

• Mike Casey: Fossil Energy Knows It's a Full Contact Game -- Does Cleantech? (huffingtonpost.com)
• A cleantech revolution in four easy steps (grist.org)
• Election Does Not Spell Cleantech Doom (greeneconomypost.com)
• The Alternative Energy Revolution Is Not For You | Christian Probasco | Energy | NewWest.Net (caddisfly.wordpress.com)

Green Skeptic Friday LinkFest - 11/19/10

Image via WikipediaHere are my links for this week:

First up, the goverment's favorite mule GM Celebrates IPO with $40 Million Investment in Clean Energy. Hmm, did the Obama administration influence that at all?
 
One of my favorite places on the planet, Raja Ampat, Indonesia, got a boost this week, as the country declared a vast sanctuary for sharks, turtles and manta rays -- and the people who depend upon the fishery.

Closer to home, and good news for my friends in Philly:

Nine firms get a total of $2.3M from Ben Franklin Technology Partners.

Philly receives grant for electric vehicle chargers.

And, phinally, the Philadelphia Eagles plan to "phly" by making their stadium energy self-sufficient.

Deeper down (below the surface, actually), Tom Konrad of Renewable Energy World says that, if you play your cards right, investing in geothermal stocks could be good. (But expect volatility.) His Top 3 Geothermal E&P Companies includes Green Skeptic favorite Ormat Technologies ($ORA).

Do we need software to hold "Greenwashers" accountable? Hunter Richards thinks so, and explains why.

Two of our favorite VCs John Doerr and Frank Wilson face off on the internet bubble: The Internet Bubble Is Real. That’s Where The Agreement Ends from peHUB.

Cleantech Group reports that while the $1.6 billion in cleantech venture investment in 3Q10 was down 25 percent from last quarter, it brings the investment through the first three quarters of 2010 to $5.8 billion -- a number that already exceeds the total cleantech venture investment in all of 2009.  It's all in how you look at it.

Have a fantastic weekend, everyone.


(Disclosure: I hold a long position in ORA. This post is for informational purposes only and is neither intended to be investment advice nor an offer, or the solicitation of any offer, to buy or sell any securities.)

Cleantech is Alive & Well in Philly

Photo by Ed Yakovich

If last week's events are any indication, cleantech is alive and well and living in Philadelphia.

The 2nd annual US-Israel Cleantech Conference, hosted by the America-Israel Chamber of Commerce, last Tuesday featured 11 companies from Israel, along with panels representing local companies and venture capital, and provided robust international dialog, as well as a showcase for innovation.

IMPACT 2010, formerly the MAC Alliance Conference, hosted its second cleantech track (full disclosure: I was part of the selection committee) during which 15 companies pitched their wares.  The quality of the presentations was indicative of the maturing of the sector in the region, as was the variety of presenting companies.

Everything from organic fertilizer to wireless electric vehicle charging, and from wastewater geothermal heat and cooling to a large scale water filtration system was represented, all from the Mid-Atlantic region.

I'll be posting more about the two conferences this week, as some of the panels and speakers were particularly informative.

My Interview with Sheeraz Haji of Cleantech Group

Sheeraz Haji of Cleantech Group

I sat down the other day with Sheeraz Haji, President of Cleantech Group, which was hosting its Cleantech Forum New York this week.

Haji has been in his position for almost two years after a stint at McKinsey and a few successful software startups. He came to Cleantech Group because he saw an opportunity to "take a great brand and transform it into the leading market research firm on cleantech innovation."

But his interest in the environment goes back to his childhood. His father worked for World Bank in various developing countries, which gave the young Sheeraz some direct, personal experience with environmental issues. Water was a particular concern.

"I went to go swimming in a lagoon in Cote d’Ivoire (Africa)," Sheeraz says. "But my father said to me, 'You don't want to swim in there; that water's dirty, it'll make you sick.' I looked at the other kids, local kids splashing around in the water and responded, 'But there are children swimming in there…' That opened my eyes."

Water is one of the subsectors that Cleantech Group tracks, and the firm has a partnership with the US EPA to map innovation across the water sector. They also have a research partnership with the US Department of Energy on smart grid solutions. In addition, the firm provides data, research, and advisory services to companies and investors to need such information to make business and investment decisions.

What challenges are you seeing for the cleantech sector?

"Financing. Financing is still an issue. We're hearing that throughout the conference."

What about all that government funding? Was the US government's stimulus not successful?

"I think the stimulus package has been successful considering how complicated it is. Matt Rogers had a tough job; the government was in a tough spot. They did it fairly, I think, as fairly as possible. Of course there are critics. And I understand where they are coming from. Government has a big role to play, not just in money, but in providing a policy framework to inspire innovation."

What issues are out there looming?

"Water. Water is a huge global issue, which is why we're focusing on it here. It has been ignored when compared to the scale of the challenge."

Can you share some trends you're seeing?

"In our latest research, transportation received the most investor money. EVs, of course, but also things like the "ZipCar for China" -- eHi Car Service of Shanghai; EcoMotors; and car-sharing in general. ZipCar is a really strong model and brand.

"Resource sharing in general. How can you get more energy efficient than sharing office space or even personal cars. I mean, why shouldn't someone get some use out of my Prius while I'm not using it, as long as it's available the 3 days a year I'm actually home.

"More efficient internal combustion engines are a still in demand; we shouldn't ignore ICEs. Fleet vehicles are a huge opportunity, too. There are still a lot of opportunities to conserve less.

"Control systems; all sorts of controls HVAC, lighting, anything in building operation and performance."

We can't talk about electric vehicles (EVs) without talking about batteries. What are you seeing in terms of batteries, specifically for the EV market?

"No one has figured out the answer to batteries for EVs. We're just not there. I'm skeptical of battery swapping technology; I mean: will the public go for it? And will it help resolve the 'range anxiety' dilemma? People are afraid they'll run out of charge while out driving. I really think charging will have to mimic the gas station-style infrastructure."

That's a very capital intensive proposition.

"It is, but that's not the same in emerging markets, where they don't already have the infrastructure set up and people aren't already tied to their cars. You look at China and India. It's different in emerging markets. Where electric motorcycles might be a good place to start; we looked at electric motorcycles and thought it makes sense in China."

What about China? Any thoughts on the big green push there?

"I've just returned from there. There was a very positive vibe in Tianjin. They are embracing the Eco-City concept there. And you can see why: the demand, the need. It's real. And companies there tell me there are few capital constraints. Really, it is a can do -- and will do -- attitude."

Any thoughts on the cleantech IPO market?

"It's going to be an interesting place to watch. Amyris is performing. Brightsource could be one to watch. Everyone is waiting for Silver Spring Network to go public, of course, but smart grid deployment has been so slow. The IPO market will be pretty interesting. I'm optimistic about it."

What do you say to people (and I've heard a few VCs take this stance) who say that cleantech is too capital intensive to make it worth investing in? That we need more capital efficient opportunities to invest in.

"Cleantech has a host of segments and sub-segments; some are capital intensive; some are more capital efficient. I actually think there are too many people chasing capital efficient plays and that there is real opportunity in bigger, more capital intensive companies, which can still be successful. You can still build a big successful company even if it takes a lot of cash to build it."

What's next for Cleantech Group?

"Three things:

1) Investing in our research in 5 key areas: smart grid, energy efficiency, transportation, waste, and water.
2) Launching our water research series at our 1st ever water event: Nov 3-4 in LA: Water Research Series
3) Continued expansion in Asia (upcoming research projects and events in India, Korea, and China)."

For more on Cleantech Group, their research, and events: cleantech.com


Related articles

• Cleantech Funding Falls (pubs.acs.org)
• Purfresh Named Global Cleantech 100 Company by Guardian and Cleantech Group (eon.businesswire.com)
• Cleantech Group Finds Global Clean Technology Venture Investment on Course, Despite a Decline in 3Q10 Investment (prnewswire.com)
• Karin Kloosterman: 7 Israeli Companies Make "Global Cleantech 100" Guardian List (huffingtonpost.com)
• EnOcean Named a 2010 Global Cleantech 100 Company (eon.businesswire.com)
• Trilliant Inc. Has Been Named a 2010 Global Cleantech 100 Company (prweb.com)

Cleantech Innovation in China: Insights from the Cleantech Group

The Future of Cleantech?

Today, "Made in China" increasingly means innovated in China.  So argues a new report from the Cleantech Group released last week, "Cleantech Innovation in China."

China became the world’s largest cleantech investor in 2009, pumping government investment into R&D and innovation incubators, but also attracting an increasing share of private money, as well as interest from the global marketplace.

According to the report, however, Chinese companies still need to rely on multinational corporations from other countries with a tradition of cleantech innovation and expansion for their success. This points to some potential opportunity for US-based companies.

In addition, China faces increased resource constraints and troublesome levels of pollution, water shortages, population growth, and other environmental risks that may hinder its progress over the long-term.

"Energy insecurity and poor environmental quality are threats," according to the report. "And addressing them is not only a key factor in managing the risk of domestic discontent but also a prime opportunity to create local jobs and develop local expertise."

Key points of interest  to readers of The Green Skeptic:

• Patent filing in China grew 29.7% in 2009, bucking the unprecedented decline in global patent filings due to the global economic crisis. China is now 4th in the world in patent origin in six key clean technologies including wind, biomass, and cleaner coal.
• The Chinese government has increased R&D spending while decentralizing R&D institutions and encouraging partnerships with the private sector, preparing China to be especially competitive in the world market. 
• China is innovating beyond the solar sector. 70% of cleantech venture capital deals between 2006 and 2009 were outside of solar. Materials science, agriculture, water and wastewater, energy storage and energy efficiency have emerged as key areas of interest.
• For the first time, in 2009, China accounted for the largest share of money raised from cleantech IPOs (69%), well ahead of the US’s 26%.  By number of deals China also had the majority with 17 of the 32 global cleantech IPOs tracked in 2009. Of the current crop of Cleantech IPOs on the ChiNext exchange in 2010, many are from water and energy storage.

We agree with the authors of the report that "China’s level of cleantech innovation today should not be over-inflated," but neither should its potential be underestimated.

As the report suggests, "the question is no longer whether a China strategy should be adopted for cleantech innovation, but rather how it should be adopted."

Download a copy of the report summary here.

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Green Skeptic Friday LinkFest - 07/30/10

Calvin on the Beach @ OKI.

A vacation edition of The Green Skeptic's Friday links.

I've been on the North Carolina coast this week and haven't been paying close attention to the web and Twitterstreams, but here are a few things from some of my pals that caught my eye from the beach:

Two posts from Julian Wong of The Green Leap Forward about the "battle" between China and the US for the leadership position in cleantech: US Clean Energy Investment at Home Is Best Response to China and Julian's testimony before the US-China Commission: Of Solar Tech and Chicken McNuggets.

Chris Nelder published "Beyond Carbon Legislation: Energy Transition," in the wake of the US Senate Climate Bill being declared DOA.

Gregor MacDonald pointed us to Amory Lovins of the Rocky Mountain Institute's 2000 predictions about coal consumption trends, evolution in the auto industry, and future world oil production Optimism, harsh realism, and blind spots—10 years later.

Gregor also had this to say about California as the Governator declared a state of fiscal emergency for the state: Collapse is a Process.

Finally, CleanTechies posted "A Price for the Volt, But None for Carbon.

Have a great weekend. I'm back from vacation next week.

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San Diego's Cleantech "Collaboratory"

San Diego has a lot going for it: beautiful weather all year round, a great coast, and...well, the new StockTwits HQ on Coronado.

And now, after several years of investment, hard work, and a smart Republican mayor, Jerry Sanders, who saw and seized the opportunity, San Diego has an emerging cleantech community.

"We're here to serve as a catalyst," says Holly Lepre, vice president of CleanTech San Diego, a non-profit formed a few years ago to promote San Diego as a world leader in the cleantech economy. "We're trying to stimulate the demand that drives and attracts new companies."

When I visited in May, CleanTech San Diego was about to announce that the region has reached 700 cleantech companies.  Earlier in the year the organization ranked number seven in the Cleantech Network's global "Top 10 Cleantech Cluster Organizations for 2010."

San Diego is also fast becoming a hub for next generation biofuels.

In June, the California Department of Labor granted $4 million to the region to develop a job training initiative for the emerging biofuels industry in both San Diego and the Imperial Valley

And earlier this month, the San Diego Center for Algae Biotechnology, received a large part of a three-year, $9 million federal Department of Energy grant, and a consortium of seven companies, including San Diego-based Sapphire Energy, General Atomics, and Sempra Energy, are providing an additional $3 million to finance research and development.

Sapphire is developing what it calls "green crude," a 91-octane gasoline made from CO2, sunlight, and photosynthetic microorganisms. Last year, Sapphire attracted BP's former head of global refining, Cynthia Warner, to be its president. Warner saw the writing on the wall and decided "it was a lot better to create the key to the future than to nurse along the dying past."

Sapphire is not alone among next generation biofuels companies attracting dinosaur industry interest.   J. Craig Venter's La Jolla-based Synthetic Genomics recently launched a new greenhouse facility as a part of a multi-year partnership with Exxon Mobil Corporation.

But it's not just biofuels in sunny southern California. There are, according to Cleantech San Diego's Lepre, 176 solar companies in the region, including Spanish turnkey solar manufacturer Siliken, which has its US headquarters here, and Envision Solar, whose "solar trees" are starting to sprout up in around the country.

Envision is based in the Kearny Mesa district and housed in EcoHub, the area's first cleantech incubator. Yves Perez, founder of the Eco Investment Club, formed a partnership with Mark Mandell of property management company Square One Development, to start the incubator in a 12,000-square foot office plaza.

"We're in a secret race for the cleantech capital of the world," says Perez. "Win this secret race and we could double the number of San Diego-based cleantech companies and startups, and 700 becomes 1400 or more."

Bob Noble, president of Envision Solar explained why his company became one of the first in the EcoHub, "We wanted to be in a space where the building owners not only understood our mission but wanted to be part of it. Being surrounded by like minded-professionals opens up new avenues for collaboration and partnership."

That collaborative spirit is a key to San Diego's success, according to Lepre. "San Diego is a natural setting for a clean tech 'collaboratory.'"

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Video: Cleantech Alliance Mid-Atlantic Spring Event

A video of the Cleantech Alliance Mid-Atlantic Spring Networking Event, featuring Terry Cooke's talk on Cleantech and China is now available. (The editors were too generous with my introductory remarks, but you'll get a sense of the event from the opening sequence.)



Here is a link in case you can't see the player: http://youtu.be/yeTBSSjJeQk

A more comprehensive account of Terry's remarks can be found here: http://bit.ly/aa3Vb9

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The Six Slide Challenge

I have an outline for a pitch deck that I recommend to clients of VerdeStrategy. It calls for 11 slides (10 if they can, but no more than 11) and goes more or less like this:

1. Company name/logo/tag, full contact info
2. What Do You Do? Core Value Proposition
3. Team (Management/Advisory)
4. What Pain are you Solving?
5. How? What's Your Solution/Benefits
6. Secret Sauce/IP/Differentiation
7. Go-to-Market Strategy
8. Competition/True Size of Market/Opportunity
9. Business Model/Stage
10. Plausible Financials (Projections for 3-5 years)
11. The Ask/Milestones/Summary

There's some variation therein, obviously, depending upon the business model or the intended audience. I've gleaned a lot from experts ranging from Garr Reynolds, Guy Kawasaki, and Bill Reichert, among others. As a template, it works pretty well.

A couple of weeks ago, Fred Wilson published a post on investor pitches in which he recommended only six slides. "You can explain your business in mind numbing detail or you can inspire an investor and let them imagine," Fred suggested. "Guess what works better?"

But it was my pal Andy Swan's comments on Fred's post that really got me thinking. He outlined the following six slides:

1. Imagine a world where....
2. Here's how we get there...
3. Known obstacles to overcome
4. The pot of gold
5. Why our team is awesome
6. Routing number for investment

I decided to play around with it on Friday afternoon and try to describe VerdeStrategy, my consulting and advisory firm focused on the cleantech, energy, and environment sectors.

Could I describe VerdeStrategy in six slides using the "Swanified" outline? Could I further get across the essential value proposition we offer in, as Fred stipulated, "six slides that will inspire and leave something for the imagination"? It was a challenge I couldn't resist.

Here is my first take. Let me know what you think:

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Video: Cleantech Alliance Mid-Atlantic 2nd Annual Investor Forum

The video of our 2nd Annual Investor Forum is available now:



Here is a link, in case you can't see the player: http://bit.ly/cVKmR3

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Top 10 Reasons Israel is a Cleantech Leader

David Buimovitch/AFP/Getty Images

Here at The Green Skeptic we've been following the progress of cleantech in Israel for some time.

There are many reasons Israel has been an innovator, including, in part, because it has to be. Now, Sustainable World Capital's Shawn Lesser highlights the history of innovation, access to capital, scarce resources and other factors propelling cleantech today in Israel.

Here are the Top 10 Reasons Israel is a cleantech leader:

1. Israel is the Silicon Valley of water. Relative to its small size, Israel has devoted more resources to the development of waste water treatment and reclamation than any other country in the world. Seventy percent of its waste water is recycled, three times the figure of number two: Spain. Israel is the birthplace and world leader in drip irrigation, which has literally turned deserts into farmlands. The Israeli firm Netafim, a $500 million high-tech drip-irrigation giant, is a world leader in smart irrigation technology and has been credited with starting the drip irrigation revolution. Israel Newtech, which promotes Israeli clean energy and water technologies, has identified hundreds of water companies. It’s estimated that Israel’s water industry was valued at $1.4 billion in 2008 and could reach $2.5 billion by 2011.

2. Brain trust. Israel has the highest ratio of university degrees to population in the world. Within its small borders is an enormous concentration of PhDs and engineers, bolstered in large part by the large immigration from the former Soviet Union. This concentration of minds in a relatively small geographical space creates a country-wide incubator where ideas are constantly tested in the coffee shops of Tel-Aviv and the hallways of universities. 

3. Necessity as the mother of innovation. Due to its location and terrain, Israel is a country that has had extremely limited natural resources since its inception. Israelis have therefore become experts at getting the most out of limited natural resources. Confronting adversity has trained Israelis to think outside of the box. “Israel is poor in natural resources and rich in brain capital. Clean energy bridges that gap. What Israel lacks in the ground it makes up with its people,” says David Anthony from 21 Ventures.

4. Leveraging tech expertise to cleantech. “Israel’s tech sector has flourished through the creation of core technology competencies that are world leading,” as Glen Schwaber, Partner at Israel Cleantech Ventures, wrote in his article “The Quest for Smarts.”

“Israel’s tech sector has flourished through the creation of core technology competencies that are world leading,” according to Schwaber. These include, but are not limited to digital printing, semiconductors, power electronics, optics and software. Over the last two decades, multiple billions of VC dollars have poured into Israeli companies in these sectors, market leaders have emerged, and many of the world’s largest multinationals have bought companies and set up shop in Israel as a result.” 

5. Capital. Just about every major US VC firm in Silicon Valley, from Battery Ventures to Greylock to USVP to Sequoia Capital, is prospecting across Israel for cleantech investments. All told, at least 40 venture funds, several of them American, manage more than $10 billion in Israel, with an increasing share of their allocations devoted to cleantech companies. 

6. The Better Place Factor. Better Place is Israel’s best known cleantech company, and it recently raised a further $350 million (see Better Place deal bested by Airtricity). Founded by Israeli entrepreneur Shai Agassi, the company is developing electric vehicle battery swapping infrastructure. 

7. The sun shines brightly over Israel. The solar radiation Israel receives is a driver of solar thermal companies. Siemens bought Israeli solar thermal pioneer Solel for $418 million, while BrightSource Energy has raised more than $160 million from investors, including U.S.-based VantagePoint Venture Partners, Google, BP’s investment arm, Morgan Stanley, and JPMorgan Chase. Other notable solar thermal companies include Heliofocus, ZenithSolar, and AORA. 

8. Kibbutz Pioneers. The foundation of Israel’s cleantech industry was laid with the beginning of the kibbutz (collective communities) movement at the start of the 20th century (see Israel’s cleantech kibbutzim pioneers). At that time, the land was mostly semi-arid, with a scarcity of water and pockmarked by mosquito infested swamps, so principles of sustainability and self-sufficiency were adopted from the outset so as to “make the desert bloom”. 

9. Home grown Israeli VC community. Israel has a vibrant local VC community which includes Israel Cleantech Ventures, AquaAgro and Terra Ventures—three firms dedicated to investing in Israel’s cleantech sector. Having a vibrant local VC community also draws foreign money.

10. Momentum. Israel is fast becoming the cleantech incubator to the world. In proportion to its population, it now has the largest number of startup companies than any other country in the world except the U.S., with 3,500 companies, mostly in hi-tech. Exciting new cleantech startups to keep an eye on, in our opinion, that haven’t been mentioned already include Bio Pure Technology, BioPetroClean, CellEra, Emefcy, Enstorage, Greenlet Technologies, GreenRoad, GreenSun Energy, IQ Wind, Linum, Panoramic Power, Phoebus Energy, SolarEdge, Takadu, Technospin, Transalgae and Variable Wind Solutions.

As Al Gore siad in a recent visit to Israel, “the people of Israel can lead the way to renewable energy. With its unique geographical position, and cleantech know how, Israel is a natural leader in the field.”

Cleantech could well become Israel’s biggest export market. Other countries should take note.

VerdeStrategy: Announcing My New Venture

Over the past year and a half since leaving Ashoka,  I've learned a lot about what entrepreneurs need to succeed.

I've also learned a lot about the needs of companies struggling with how to be green and sustainable in a time of increased scrutiny and transparency.

Somewhere at the intersection of these two learnings is where my new venture, VerdeStrategy, took root.

And I'm pleased to announce its launch today.

VerdeStrategy is a consulting and advisory firm focused on the cleantech, energy, and environment sectors. Working with start-ups, corporations and social enterprises, we will help create robust, sustainable businesses that attract investment, improve profitability, and extend market share.

If you're a start-up needing to raise capital to build your prototype, but not sure where to turn or struggling to explain your concept in a simple, compelling way, we can help with that.

If you're a company wrestling with what sustainability means to your company or trying to take the next step in a sustainability journey already begun, we can help with that.

If you're a CEO who needs coaching, a sounding board for management issues, or to polish your presentation skills, we can help with that.

If you're the leader of sustainability or green efforts at your company and need help navigating the confusing sustainable path, we can help with that.

I'm very excited about this new venture and about starting it in Philadelphia, where my involvement with GoodCompany Ventures, Philly Startup Leaders, and the launch of the Cleantech Alliance Mid-Atlantic (formerly REBN, Mid-Atlantic) conspired to inspire this new venture.

Here's a link to our web site: VerdeStrategy.  Let me know how we can help.

The Green Skeptic's Portfolio for 2010

I've made some adjustments to my Green Skeptic Stock Portfolio for this year.

All of these stocks are in the cleantech, energy, or environmental sector. (Note: I may hold other positions outside this sector and have an IRA that may have other positions as well, but this portfolio is strategically focused for specific investments in this sector.)

A couple of other things you should know about this list, in addition to the disclaimer below:

I rarely short any stocks.  Although I am tempted sometimes, I'm neither smart enough of a trader nor can I pay close enough attention to the market to do it well. So, the bulk of my portfolio is Long, but I'm also watching or tracking other stocks for either an entry, re-entry, or just because I'm curious about what's happening in a particular sector -- or they are a direct competitor of another stock I hold.

My interest in the companies whose stock I buy and hold is based upon a belief in the company, their product, their potential in the market, and whether I think they are or will be a market leader. (Don't let me fool you, I don't think I'm smart enough to predict whether they will be best in class either! But "ya gotta have one vice," as my Grandmother used to say.)

Anyway, here is my list of long positions and my watch list for 2010:

Long positions: $FSLR $CREE $TTEK $ORA $ENOC $JCI $EXC $AONE $XTO $AEP $AWK

Watch list: $BTU $CHK $KOL $CCC $GE $BWA $OTTR $TLM $NLC $TNB $APWR $COMV $WTR $AMAT

You will note that I am using the StockTwits convention for identifying ticker symbols, which includes a dollar sign. If you don't know about StockTwits, read my post here: StockTwits: Break Away from the Usual Market Noise or head on over to StockTwits.com and sign up for some of the best dialog and community on the web.


(Disclosure: I hold long positions in some of the stocks listed above. This post is for informational purposes only and is neither intended to be investment advice nor an offer, or the solicitation of any offer, to buy or sell any securities.)

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Omidyar Network Relaunches Itself, Turns ON

Omidyar Network today launched a new brand, including a new logo and website. The web site is much easier to navigate and to find their areas of focus, background and multimedia on their investee organizations and portfolio companies.

Omidyar Network (ON) has been a unique experiment and it is exciting to see the changes that Matt Bannick has instituted since taking over a short time ago. ON, like google.org, seemed to struggle with focus and clarity until recently.

Now, as illustrated by this new site, the focus of ON is clearer. And more good news: innovation is not lost for the sake of that focus. ON is a hybrid investor, taking equity stakes in some ventures as well as providing early stage philanthropic risk capital for social entrepreneurs or Small & Medium-sized Enterprises (SMEs) in emerging markets.

Some of ON's investments include Ashoka, Unitus, MicroVest, DonorsChoose.org, Common Sense Media, Digg, MeetUp, GlobalGiving, Seesmic, Endeavor, CellBazaar, and WITNESS. (For a full portfolio, click here.)

"The new brand brings our work into sharp focus for the constituencies that we serve," said Matt Bannick, Managing Partner at Omidyar Network. "The logo embodies what we stand for, and the website offers greater insight into how we work and how our investees deliver social impact."

Omidyar Network was started in 2004 by eBay founder Pierre Omidyar and his wife Pam. They say it is dedicated to the idea that every person has the power to make a difference.

I like what the new logo says about turning "on" that power, encouraging people to improve their lives and the lives of others. The logo also, as ON says in its press release, makes reference to the transformative power of technology, which many of ON's investee organizations use to amplify and accelerate their impact.

In addition to in-depth descriptions of each investment area, Omidyar Network's new site features profiles of ON's investee organizations, which helps raise the visibility of those organizations and makes ON's investments more transparent. It also provides a better picture of their overall approach and strategy.

There's also a "VentureLoop" portal for users to search and apply for job opportunities at Omidyar Network portfolio companies, as well as all the financial and investment information a user may need to evaluate ON's investments.

Check it out: Omidyar.com


(Disclosure: The author was formerly VP of Global Development at Ashoka, an Omidyar investee organization. He is not affiliated with either entity at this time.)

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