Can Crowdfunding Help Cleantech Ride the Big Data Wave?

"Big data is a coming wave of 'green gold,'" says Nick Eisenberger of Pure Energy Partners."Information technology will be the most powerful tool to address resource challenges in our lifetime."

Eisenberger was speaking at the Markle Foundation offices in New York, where Agrion, which bills itself as the global network for energy, cleantech and corporate sustainability, convened an impressive roundtable to talk about advances in funding new ideas and uncovering innovation for energy and sustainability.

Moderated by Peter Gardnet of Breaking Energy, the panel featured, in addition to Eisenberger, Benjamin Healey of Connecticut's Clean Energy Finance and Investment Authority (CEFIA), Richard Robertson, Solar Energy Business Development Manager with GE Ventures, and Dr. Jon Roberts of the Clean.Data.Project.

"Energy is where the most data is," said Clean.Data.Project's Jon Roberts. And the panelists agreed its where the most opportunities are in energy, improving its generation, use, and efficiency. Yet not all the necessary datasets are open.

"The biggest obstacle is generational," Eisenberger claimed. "The older generation, my generation, is not comfortable with the 'open' in open innovation."

Richard Robertson explained how GE Ventures has invested in Quirky, a crowdsourcing platform for inventors, and has turned to the crowd for help with design and product naming.

The innovation is out there, Robertson suggested. 

"Sungevity has an incubator in their Oakland facility, and Solar Mosaic [the crowfunding platform] is in that incubator,” said Robertson. “Mosaic is looking at not just solar projects, but wind, energy storage. They're putting projects in the ground." 

At least one audience-participant in the Agrion session, a project finance expert, called into question some of the deals Mosaic and others are funding and the stated returns listed on the Mosaic site. "We wouldn't fund those projects," he offered. "It's like charity."

But that's precisely the point made by Mosaic and others, such as alternative financing renewable energy companies SolarCity, SunRun, and United Wind, among others. They are there to fund the deals no one else will, deals that aren't big enough for the big banks, which is a pretty good sized niche.

That is, in fact, why these new models exist.

For those not familiar with the Mosaic model: projects are listed on its online marketplace, which allows investors pick projects to fund and then provide the capital for rooftop solar installations. The investors are repaid once the project is up and running and generating electricity. Their first projects were mostly on affordable housing in California.

The company provides capital to developers at about 5.5 percent and collects a 1 percent fee, according to some sources, returning roughly 4.5 percent.

“To rapidly deploy clean energy, the industry needs access to low cost capital and lots of it,” Mosaic co-founder, Billy Parrish, told Bloomberg News last year. “We are able to source capital from the crowd and lend that capital to clean-energy developers at lower interest rates than they would get from banks.”

Platforms like Mosaic, which seek a large, “democratic” community of engaged funders, as opposed to the elite accredited few, got a boost last year when the SEC released its proposed guidelines about crowdfunding as it relates to the Jumpstart Our Business Startups or JOBS Act.

If the admittedly hand-picked crowd at the Agrion session is any indication, crowdfunding is here to stay.

However, as several roundtable participants suggested, it may be best deployed as part of a mix of financing options.

Number 9 Dream and a Note of Thanks to Readers

Nine years ago yesterday I wrote my first blog post here The Green Skeptic. Some 900+ posts later, my come more slowly and less frequently as other forms of writing and communication have usurped the blog's domination, but it's still chugging along.

As John Lennon sang in his song "Number 9 Dream" from his 1974 LP, Walls and Bridges:

"So long ago

Was it in a dream, was it just a dream?

I know, yes I know

Seemed so very real, it seemed so real to me..."

Nine years does feel like a dream. I never dreamed I'd still be publishing this blog nine years later, even on a less regular basis than some years.

A lot has changed in nine years, but one thing remains steadfast: my appreciation of you, my readers.

You come from 10 countries (according to Google Analytics), with the United States, France, and China topping the list, followed by the Ukraine, Germany, and Russia; then the UK, Belgium, Slovakia, and Hong Kong.

An eclectic list, indeed. If your country is represented or if it is not, please let me know.

Of the 940 or so posts I've written here (or at least since May 2007, when Google Analytics started tracking my posts) the most popular is one that I posted over three years ago on the World Economic Forum's Technology Pioneers. It's being chased by a couple of recaps from Cleantech Alliance events, my "Take-Aways" from the Aspen Environment and Global Philanthropy forums of a few years back, and book reviews for Amy Larkin's ENVIRONMENTAL DEBT and Mark Tercek's NATURE'S FORTUNE, posted earlier this year.

The inclusion of the last two posts on my all-time, top 10, leads me to believe you are still finding relevance in what I write here, which encourages me to keep going -- and perhaps to focus more directly on book reviews and lessons learned from events in the marketplace.

As The Green Skeptic starts its 10th year, I will keep in mind the words I wrote to mark our seventh year together, "I want to thank you again for reading. I hope to keep up my end of the bargain moving forward with good, informed writing about the issues, a healthy skepticism about both hyperbole and hysteria and, most of all, a respect for you, my readers."

Happy Thanksgiving (or "Thanksgivukkah," as we're saying this year).

"Ah! böwakawa, baby, poussé, poussé," as John Lennon sang it. (And if anyone knows what he meant by that phrase, I wish you'd post it in the comments!)

Know Your Audience (and Its Bite Size), Say Corporate VCs to Cleantech Entrepreneurs

Grant Allen of ABB TechnologyVentures

"Get your stuff together before you meet with us," said Grant Allen of ABB Technology Ventures to an audience of entrepreneurs, investors, and corporate leaders gathered at the offices of Pepper Hamilton in Philadelphia last Thursday. "Do your homework. We're quite clear on our web site what we do. And make sure you have a crisp, compelling script, and a strong, committed management team."

This sentiment was echoed by Michael Smith, head of Constellation Technology Ventures at Exelon. "You need to know your audience," Smith said. "Talk to us like an energy company. We're looking for ways to keep Exelon relevant."

The event, "Energy Giants: Looking for Innovative Investments," was jointly sponsored by Pepper Hamilton and the Cleantech Alliance Mid-Atlantic, and featured Sumit Sarkar of NRG Ventures, in addition to Smith and Allen, on a panel that I moderated.

Michael Smith of Constellation
Technology Ventures

"Large companies aren't good at innovation," Allen offered, "our goal is to be a thorn in the side of internal R&D."

Sarkar suggested that the venture arms of corporations can sometimes be nimbler in response and are constantly scanning for technologies that offer improvements.

Each outlined what they look for in a company and how much they want to invest, their “bite size.”

There was, of course, some discussion about capital "light" companies or technologies, but given the range of their investment thresholds -- from $3M-$250M -- they understand the need for some capital outlay.

While traditional Venture Capital (VC) has been pulling out of the sector, corporate VC (CVC) has picked up some of the slack.

In 2012 for example, according to a recent study, of the total $6.46B investment in the sector, $2.7B came from corporates, up from $2.55B in 2010 and $1.7B in 2006. Q2 of 2013 saw CVC rise to 14% of total venture investment in the sector vs. only 8% in Q1. And 107 CVCs made an investment in the sector in the 1st half of 2013, versus 148 in all of 2012.

Sumit Sarkar of NRG Ventures

Corporate VCs are a little less risk averse than traditional VCs, in part because such companies are full of engineers who can scrutinize a technology's before an investment is made, but there seemed to be consensus that if the technology enables an existing technology perform better, it is going to be worth a look.

All three investors agreed that networking and investment pitch events can serve as a feeder for companies, but having an executive sponsor is best. 

The entrepreneurs in the room, representing everything from energy storage to software that helps increase the efficiency of long-haul truck drivers, seemed to nod in understanding or agreement.

At the cleantech CEO Retreat that I help manage for EY’s Global Cleantech Center this fall, a recurring meme developed around elephants dancing with mice. As small companies (the mice) began to dance with corporates (the elephants) either as strategic partners, customers, or investors.

Some of the concerns for the mice, obviously, were around how not to get crushed while dancing with elephants. But from the elephant side, how can mice get noticed and have something relevant to share?

Hopefully, the panelists at last Thursday’s event helped alleviate some of the stress between species on the dance floor.

(Disclosure: the author is co-founder of the Cleantech Alliance Mid-Atlantic.)

Energy Giants: Looking for Innovative Investments

Join me as I moderate this panel on corporate investors looking for innovative technologies that fit their corporate strategies. Hope to see you there.   

Energy Giants: Looking for Innovative Investments

Thursday, November 14, 2013

Large and forward-looking corporations want to be on the ground floor of the next wave of energy innovation. Corporate investors are looking for innovative technologies that fit within their corporate strategies. In addition to financial assistance, these corporate investors are also assisting to commercialize technologies within the large and changing energy markets. Learn about this and more by attending this informative and lively dialogue in which industry experts will address these and other key questions. Sponsored by Pepper Hamilton LLP's Energy Group and Emerging Company Group and the Cleantech Alliance Mid-Atlantic, this session examines the recent resurgence in corporate venture activity in the energy space - particularly among Fortune 500 companies - and the many new players involved in the industry. Join us to learn more about this complex and important topic.

5:30 - 6:00 p.m. Networking and Registration

6:00 - 7:00 p.m. Program

7:00 - 7:30 p.m. Networking

Pepper Hamilton LLP

3000 Two Logan Square

Eighteenth and Arch Streets

Philadelphia, PA  19103

Welcome & IntroductionThomas P. Dwyer, Partner, Pepper Hamilton LLP

Moderator
Scott E. Anderson, Global Marketing Director, Cleantech, Ernst & Young LLP
Co-Founder, Cleantech Alliance Mid-Atlantic

Speakers

Grant Allen, Senior Vice President, ABB Technology Ventures
Sumit Sarkar, Director, NRG Ventures
Michael Smith, Vice President, Head of Constellation Technology Ventures at Exelon

Contact Kristen Clark at clarkk@pepperlaw.com or 412.454.5049 with questions.

CLICK HERE to register for this event.

(Full disclosure: I am co-founder of the Cleantech Alliance Mid-Atlantic.)

3rd Annual EY Cleantech CEO Retreat Underway

EY Cleantech CEO Retreat Underway

Today starts the 3rd Annual EY Cleantech CEO Retreat, an event I've managed for the past two years and which we, EY's Global Cleantech Center, hosts at the Carneros Inn in Napa, California.

This two-day Retreat is designed to be an intimate, facilitated dialogue between peers working in all sub-sectors and concentrations from the broad spectrum that is cleantech.

Included are emerging company entrepreneurs focused on energy efficiency, new ways of financing clean energy development, producing alternative fuels and even more efficient ways to use traditional fuels.

Some of the companies attending include Elevance Renewable Sciences, LightSail Energy, OriginOil, Energy Points, and WegoWise.

In addition, we bring into the fold some of the most innovative companies fostering sustainable solutions or investing in the companies and business models for a sustainable future.

Among the corporations are Nike, SunEdison, WiTricity, Tecsis Brazil, and CLP India.

We're excited to be hosting this event again this year and look forward to a couple of days full of stimulating dialogue about the issues facing cleantech companies today -- from capital raising to working with corporations as partners and customers, from helping US government agencies reach their renewable energy targets to seeking opportunities in emerging markets like China and India.

And, of course, we look forward to the good food, wine, and landscape that Napa and the Carneros Inn provides.

We couldn't do it without our sponsors, including Bloomberg New Energy Finance, Goodwin Procter, Heidrick & Struggles, Silicon Valley Bank, and Steelcase, who provided the furniture for our unique event. Additional support came from the Aspen Institute's Energy & Environment Program.

For more on this invitation-only event and other programs and thought leadership from EY's global Cleantech Center, go to ey.com/cleantech.

In Case You're Wondering Why The Green Skeptic Hasn't Posted in Some Time...

As the season turns from summer to fall, it's becoming increasingly obvious to me that I've neglected The Green Skeptic and its readers for too long -- my last post was August 2nd.

But there's good reason! 

In addition to the usual summer vacation (those of you who follow me on Twitter or Instagram will have seen my tweets from Martha's Vineyard), back to school, and the Jewish holidays, which I've been fortunate enough to enjoy with my fiancee, Samantha, I've been cooking up a few other things -- besides delicious meals.

First, is EY Cleantech's upcoming CEO Retreat in Napa, California, where we'll welcome over 80 cleantech CEOs, corporate, and government leaders  representatives. It's a very exciting event and I've had the pleasure of organizing and managing it for the second straight year. You can read more about it (and read last year's report) HERE.

Second, I've begun work on a new book of nonfiction that pulls together stories of cleantech innovation and my own insights on the sector, which will be of interest to readers of The Green Skeptic. (More on that later, I hope.)

And finally, this fall, the Aldrich Press is publishing my first full-length collection of poetry, FALLOW FIELD. The book consists of 45 poems, representing my best work from the past quarter century, and you can order your signed copy of FALLOW FIELD here:

Here is what others have said about this collection, FALLOW FIELD:

“Scott Edward Anderson’s poems honor the reality that the things of the world – rye grass, fall warblers, ravens, owls, ‘Sargassum drifting/ in a pelagic wave,’ lovers and sourdough bread – speak to and for our innerness. Here the sense of place is not simply a matter of geography, but of feeling one’s way into that sense of becoming that makes one’s path clear. The book’s fourth section is comprised of poems that beautifully embrace the very human need to join the inner and outer, a territory defined, as the poem titles suggest, by ‘Becoming,’ ‘Shapeshifting,’ ‘Cultivating,’ ‘Mapping,’ and ‘Healing.’ Guided since childhood, as the book’s closing long poem relates, by nature’s teaching, Anderson is devoted to finding the words for what it means to dwell mindfully among others on the wounded earth.”

                                                            –Alison Hawthorne Deming, author of Rope: Poems

“I was impressed by Anderson’s engagement with nature — especially the way in which his lyrical lines sketch the profound relationship between humans and their environment.”

                                                             – Jonathan Galassi, author of Left-handed: Poems

For those of you not familiar with my poetry, it is rooted in nature and grounded in what Robert Hass called the “strong central tradition of free verse made out of both romanticism and modernism, split between the impulses of an inward and psychological writing and an outward and realist one, at its best fusing the two.”  (Hass, Introduction to Best American Poetry 2001)

I studied with Hass and with Gary Snyder, along with the late Walter Pavlich, and received some great mentoring and advice from poets Alison Hawthorne Deming, Donald Hall, Colette Inez, and Karen Swenson, as well as wonderful friends and readers.

My poetry is informed by a deep engagement with the natural world, attuned to the smallest details and complexities of nature and our experience of place. Attentiveness and mindfulness are critical to my method of working, both as the poem first evolves and later, through the often rigorous process of revision.

I believe poetry is the most direct language with which to approach our place in the world and reconnect us to nature. By nature, I mean not only the natural world, but also the built environment; not only the processes and causal powers of the physical world, but our immediate experience of the spiritual and the non-human.

For the past twenty five years, I have been building a body of poetry that tries to achieve my goal of writing that is open, approachable, and eminently readable, at the same time that it is intellectual and revels in the joy of language. FALLOW FIELD represents the best of my poetry over that time.

Order your signed copy of FALLOW FIELD below: