Cleantech: the 'hot' area for innovation capital and new companies©sentation-youngman.pdf · 2009. 6. 22. · Cleantech Group –accelerating the next wave of innovation Upcoming,

Cleantech: the 'hot' area for

innovation capital and new

companies

May 18, Paris

Richard Youngman, MD Europe, Cleantech Group - [email protected]

mailto:[email protected]

Cleantech is way broader a theme than just energy

Typically Ubiquitous

Global Applications

CLEANTECH encompasses knowledge-based technology products/services that:

• Provide superior performance at lower costs.

• Greatly reduce or eliminate negative ecological impact .

• Improve the productive and responsible use of natural resources.

ENERGY: Includes Energy Generation, Energy Storage, Energy Infrastructure and Energy Efficiency .

TRANSPORTATION: Includes vehicles design, fuels and logistics

AIR & ENVIRONMENT: Includes remediation, emission

control, trading and offsets, etc.

RECYCLING & WASTE: Includes various recycling services and

waste treatment services.

WATER: Includes filtration, purification, water conservation and

wastewater treatment, etc.

MANUFACTURING/INDUSTRY: Includes monitoring/control

appliance and smart production industries.

MATERIALS: Includes environmental friendly nano, bio,

chemical materials, etc.

AGRICULTURE: Includes land management, natural pesticides,

natural fertilizers, etc.

Doing more with less

Cleantech Group – accelerating the next wave of innovation

Upcoming, entrepreneurial companies

Investors (VCs, angels, etc.)

Cleantech Network™: Introduced “cleantech” concept in 2002; provides deal flow and research products and global Cleantech Forums™; 1500+ investor members, 5000+ Forum attendees, 20 forums held worldwide, $1.5B+ raised by Cleantech Forum™ presenting companies.

The Cleantech Group provides news, data/research, and eventsthat allow the right connections to be made, for business to getdone – and thus help the overall market accelerate

http://cleantech.com/cleantechforum/sanfrancisco09/index.cfm

Cleantech Group – accelerating the next wave of innovation

Upcoming, entrepreneurial companies

Investors (VCs, angels, etc.)

Buyers –corporates(procurement partnering, M&A) & public sector

Cleantech Accelerator – introduced to assist corporations and public sector bodies to identify cleantech solutions and opportunities

Cleantech Network™: Introduced “cleantech” concept in 2002; provides deal flow and research products and global Cleantech Forums™; 1500+ investor members, 5000+ Forum attendees, 20 forums worldwide, $1.5B+ raised by Cleantech Forum™ presenting companies.

R&D/IP creation (universities & research institutes)

Cleantech Group – helping the whole ecosystem accelerate

Upcoming, entrepreneurial companies

Investors (VCs, angels, etc.)

Advisors & service providers

Buyers – corporates(procurement partnering, M&A) & public sector

Capital providers (LPs)

R&D/IP creation (universities & research institutes)New entrants

Govt/Policy makers

All players in the ecosystem are clients or prospect

clients who could benefit from our services

Cleantech Network™: Introduced “cleantech” concept in 2002; provides deal flow and research products and global Cleantech Forums™; 1500+ investor members, 5000+ Forum attendees, 20 Forums worldwide, $1.5B+ raised by Cleantech Forum™ presenting companies.

Cleantech Accelerator™: Assists corporations, investors & governments, to develop cleantech markets and opportunities

Membership of the Cleantech Network is about accessing what we know and who we know – across the globe

2,14,4

67,7

0,8

7,7

19,1

30,5

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4,8

10,5

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0

5

10

15

20

25

30

35

2005 2006 2007 2008

VC M&A IPO

Tota

l am

ou

nt

(US$

M)

Combined Total (2005 – 2008*) = $99.4bn

Source: Cleantech Group

* 2008 to dateMarket insight –webinars, exclusive interviews, quarterly investment report, etc.

Market data – cleantech transactions in VC, M&A, IPO

Market news – daily on cleantech.com & weekly newsletter

Cleantech Forums – 5 worldwide a year, $1.5bn raised by presenting companies

CleantechNetwork >2000 Members worldwide. Network advised and supported by global and regional sponsors

http://cleantech.com/news/vinod-khosla-dallas-kachan-interviewhttp://cleantech.com/cleantechforum/sanfrancisco09/index.cfm

Around the cleantech innovation world…

…in 30 minutes of charts and analysis

…using venture investment as a proxy of innovation

activity

…where have we come from?

…where are we going?

what do we think?

what do you think?

2008: end of the first cleantech boom

Global market share of VC Investment

Global Sector Breakdown 2006 - 2008

$0 M

$500 M

$1 000 M

$1 500 M

$2 000 M

$2 500 M

$3 000 M

1st Qtr 2006

2nd Qtr 2006

3rd Qtr 2006

4th Qtr 2006

1st Qtr 2007

2nd Qtr 2007

3rd Qtr 2007

4th Qtr 2007

1st Qtr 2008

2nd Qtr 2008

3rd Qtr 2008

4th Qtr 2008

1st Qtr 2009

2006 2007 2008 2009

Mill

ion

s

Manufacturing/Industrial

Air & Environment

Water & Wastewater

Agriculture

Materials

Recycling & Waste

Energy Infrastructure

Transportation

Energy Storage

Energy Efficiency

Energy Generation

Energy Generation Share: Q109 - 48%, Q408 – 55%, Q308 – 65%Average 2006 to 2008 - 58%

Solar down by 2/3 in absolute since 3Q08, but still

1/3 of overall venture investment

Biofuels: virtually all investment in follow-on rounds

Energy storage rebounding

Transportation remains steady

Top transportation rounds in 1Q09

1Q09 Takeaways

• 1Q09: second consecutive sharp decline in cleantech VC– 2008: end of the first cleantech boom

– Solar continues to be the dominant investment theme, with transportation,

biofuels, batteries as secondary themes

• 2009: driven by global stimulus and policy drivers– $400B in global stimulus allocated to ‘green’ sectors and projects

– Upcoming policy initiatives on climate, carbon, energy

• Secular long-term drivers remain intact– Energy demand is positively correlated to increase in per-capita income

– Climate change solutions require substitution away from oil and coal

– Long-term supply issues for oil and other sources of traditional energy

The Key Takeaways!

• 2006-08: the first cleantech boom• Solar is the dominant investment theme, with transportation, biofuels, batteries as

secondary themes

• Long-term drivers remain intact– Energy demand is positively correlated to increase in per-capita income

– Long-term scarcity of oil, natural gas and other sources of traditional energy

– Climate change solutions require substitution away from oil and coal

• 2009: a year of transition– We expect 2009 to remain depressed due to credit crunch and recession

• Deal sizes, valuations to pull back significantly

• Energy and commodity prices cease to be short-term drivers of confidence

– Stimulus and tax plans globally are focused on clean technologies, energy

efficiency, and green jobs. Shift of leadership from private to public sector

Government Spending - Largest Projects in History

Compiled from numerous sources by Intel Corporation

(Inflation Adjusted)

Global Stimulus Spending on Cleantech

About $400 billion has been earmarked for ‘green’ investments, with about 50% of that amount expected to be invested in 2009.

Percentage of stimulus spending directed towards cleantech across selected countries:

South Korea - 69 percentChina - 38 percentFrance - 20 percentUS -16 percentEU package -14 percentGermany - 13 percentUK - 7 percentJapan - 2.6 percentItaly - 1 percentIndia - 0 percentPoland - 0 percent

Source: HSBC

Sources: Cleantech Group, WEF, IEA WEO 2008 and HSBC

Global Stimulus Spending on Cleantech in 2009

Private Sector

Public Sector

Conclusions

• 2009: back to earth for cleantech – its first ‘down’ year– Valuations reset

– Exits/M&As and IPOs continue to lag

– Policy initiatives globally will be the main driver

• Some Key New Themes to watch out for – Smart Grid

– Green Buildings

– Technologies that make traditional energy sources and existing

industrial processes cleaner and more efficient

Thank You!

www.cleantech.com

Come Join Us in 2009 At:

Cleantech Forum XXIII Boston September 9-10, 2009Cleantech Forum XXIV Delhi, October 15-16, 2009Cleantech Forum XXV Beijing, December, 2009Cleantech Forum XXVI San Francisco, February 24-26, 2010

Cleantech Forum XXVII Paris (to be confirmed), April, 2010

http://www.cleantech.com/http://www.cleantech.com/http://www.cleantech.com/http://www.cleantech.com/http://www.cleantech.com/

Cleantech Group – accelerating the next wave of innovation

Upcoming, entrepreneurial companies

Investors (VCs, angels, etc.)

Buyers –corporates(procurement partnering, M&A) & public sector

Companies, of all sizes and industries involved and impacted – just realising this at different speeds!

Energy (Total, BP, ), Utilities (EDF, PG&E, ) Retail (Walmart, Tesco), Infrastructure/Building/Construction, Industry (GE, Siemens), IT companies (IBM, Intel),

In France – Total, Veolia, GDF Suez, Alstom

R&D/IP creation (universities & research institutes)

Company Amount Key Investors

Nanosolar (US) – CIGS thin-film PV – nano-deposition manufacturing process $300 M

AES Corporation, Beck Energy, Carlyle Group, EDF Energies Nouvelles

Solyndra (US) - CIGS thin-film PV – thermal co-evaporation manufacturing process on cylindrical cells $219 M

Argonaut Private Equity, CMEA Ventures, Redpoint Ventures, RockPort Capital Partners

SoloPower (US) – CIGS thin-film PV – thermal co-evaporation manufacturing process $200 M Undisclosed

SolarReserve (US) - Concentrated solar thermal technology developer (power tower/heliostats) $140 M

Citi Group, Good Energies, US Renewables Group, PCG Asset Management

Sulfurcell Solartechnik GmbH (Germany) - CIGS/CIS thin-film PV $134 M

Intel Capital, Climate Change Capital, AIG Investments, DEMETER

OptiSolar (US) - a-Si thin film solar cells / developer of solar power plants $132 M Undisclosed

SunEdison (US) - Installer and financier of solar systems for industry and business $131 M

Greylock Partners, HSH Nordbank AG, Applied Ventures, Black River Asset Management

eSolar (US) – Concentrated solar thermal technology developer (power tower/heliostats). $130 M Google, Idealab, Oak Investment Partners

BrightSource Energy (US) - Concentrated solar thermal technology developer (power tower/heliostats) $115 M

BP Alternative Energy, Draper Fisher Jurveston, Google, Morgan Stanley

Solel Solar Systems (Israel) – Concentrated solar thermal technology developer (parabolic troughs) $105 M Ecofin

Top 10 solar rounds in 2008

Company Amount Key Investors

Range Fuels (US) - Developer of cellulosic ethanol conversion facilities that process waste biomass. $100 M

Passport Capital Partners, BlueMountain, KhoslaVentures, Leaf Clean Energy Company

Range Fuels (US) - Developer of cellulosic ethanol conversion facilities that process waste biomass. $58 M

Blue Mountain, Khosla Ventures, Leaf Clean Energy, PCG Asset Management

Sapphire Energy (US) - Developer of next generation biofuels based on metabolic engineering. $50 M

Cascade Investment, Wellcome Trust, ARCH Venture Partners, Venrock Associates

Sapphire Energy (US) - Developer of next generation biofuels based on metabolic engineering. $50 M

Cascade Investment, Wellcome Trust, ARCH Venture Partners, Venrock Associates

Solazyme (US) - Producer of biodiesel using aquatic microbes and a process that does not require sunlight. $45 M

Braemer Energy Ventures, Harris & Harris Group, Lightspeed Venture Partners, Toda Group

EnerTech Environmental (US) - Developer of a process for converting biosolids such as sewage sludge into a high-grade renewable fuel. $42 M

Citi Group, CNM Inc., Masdar Clean Tech Fund, Nimes Capital

Coskata (US) - Developer of microorganisms and bioreactor technology for processing biorefuse into ethanol. $40 M

Blackstone Group, Advanced Technology Ventures, Globespan Capital Partners, KholsaVentures

Roshini International Bio Energy Company (India) - Developer and processor of non-edible bio-energy feedstock for dry wasteland areas. $39 M Goldman Sachs

EdeniQ (US) - Developer of a cellulosic ethanol conversion process using agricultural waste and synthetic biology. $33 M

Advanced Equities, DFJ Element Partners, NCD Investors, Angeleno Group

Mascoma (US) - Developer of genetically engineered ethanol-producing bacteria for bioprocessing of cellulosic feedstocks. $31 M General Motors, Marathon Oil Corp.

Top 10 Biofuels Rounds in 2008

Company Amount Key InvestorsWinWinD Oy - Developer of turbines that use a 'planetary' gear solution and slow rotating generator. $177 M Masdar Clean Tech FundSE Forge - Producer of wind turbines, components, and machineries. $85 M IDFC Private EquityArise Windpower - Develops land-based wind power farms in southern Sweden. $54 M

Nordea Private Equity, StatkraftDevelopment AS

Emergya Wind Technologies Holdings NV - Developer of advanced direct drive wind turbines and wind farms. $44 M

Emerald Technology Ventures, Atlas Invest, Impax Asset Management, RIG investments

Northern Power Systems - Developer of wind turbines for distributed applications. $37 M Rockport Capital Partners, Allen & Company

Valorem - Developer and operator of wind farms in France. $23 MAvenir Entreprises, Credit Agricole PE, Grand Sud Quest Capital

Baoding Tianwei Baobian Electric Co., Ltd - Producer of wind turbines and power units. $22 M Sino-Us Pacific Investment Co. Ltd.Knight & Carver Wind Group, Inc. - Provider of wind turbine blade inspection, repair and maintenance services. $12 M Global Environment Fund

Quiet Revolution - Developer of vertical-axis wind turbine technology optimised for distributed generation applications. $11 M RWE AGTechnoSpin, Inc. - Developer of small wind turbines for residential and commerical use. $8 M 21 Ventures

Top 10 Wind Rounds in 2008

Investor# of Rounds Participated Portfolio Companies

Khosla Ventures 21

Ausra (2), Coskata (2), AltaRock Energy, NanoH2O, Neersorb, Amyris Biotechnologies, EcoMotors, Firefly Energy, Gevo, Range Fuels (2), Sakti3, Codon Devices, Infinia Corp, Lumenz, Mascoma, PAX Streamline, SJS Technology, Transonic Combustion

Kleiner Perkins Caufield & Byers 19

Ausra (2), Kotak Urja, Luca Technologies, Silver Spring Networks, Sriya Innovations, AltaRock Energy, FiskerAutomotive (2), Flodesign Wind Turbine, Amyris Biotechnologies, Lehigh Technologies, MachFlow Energy, Segway, Verdiem Corp, Codon Devices, GMZ Energy,Mascoma Corp, RecycleBank

Quercus Trust 16

Lightwave Power, Open Energy Corp, Promethean Power, ReGen Power Systems, Sencera International (3), Cyrium Technologies, Firefly Energy, Hydro Green Energy, Standard Renewable, Colorep, Glacier Bay, GridPoint, Nanoptek, Suniva,

RockPort Capital Partners 14ISE Corp, Project FROG, Second Rotation, Soliant Energy, Solyndra, Deerpath Energy, Eka Systems, EnphaseEnergy, Hycrete, Northern Power Systems, Sustainable Spaces, Aspen Aerogels, Achates Power, NanoGram Corp

Draper Fisher Jurvetson 13d.light design, Planet Metrics, SolarCity Corp, Attero Recycling, Genomatica, Kaiima, Primet Precision Materials, BrightSource Energy, EdeniQ, EoPlex Technologies, GreenFuel Technologies, Deeva Energy, Luminous Devices

VantagePoint Venture Partners 10

Adura Technologies, Chemrec AB (2), Cobalt Biofuels, iWatt, Miasole, Ostara Nutrient Recovery Technologies, Bridgelux, BrightSource Energy, Mascoma Corp

Emerald Technology Ventures 11

FMI NewCoal, Oceanlinx, Pelamis Wave Power, Emergya Wind (2), EnOcean, Pressure Pipe Inspection Company, Xunlight Corp (2), Senscient, Arxx Building Products

Chrysalix Energy Venture Capital 8 Brammo Motorsports, Cyrium Technologies, H2Scan, Bridgelux, Epyon, ReliOn (2), Fat Spaniel Technologies

PCG Clean Energy & Technology Fund 8 SolarReserve, Allied Resource Corp, Range Fuels (2), ReliOn, SpectraWatt, Fat Spaniel Technologies, Odersun

Oak Investment Partners 8 GreenVolts, NanoH2O, Plastic Logic, Aurora BioFuels, eSolar, ReliOn (2), Boston PowerAdvanced Technology

Ventures 8 CaliSolar, Coskata (2), AltaRock Energy, Nuventix, Rive Technology, Wakonda Technologies, Sub-One Technology

Google, Inc. 8 Actacell, AltaRock Energy, Aptera Motors, Makani Power, Potter Drilling, BrightSource Energy, eSolar (2)

Venrock Associates 7 Qteros, Second Rotation (2), Sapphire Energy (2), Boston Power, Orecon

Foundation Capital 7 Azure Power, Silver Spring Networks (2), SunRun (2), Control4 Corp, eMeter Corp

Polaris Venture Partners 7Infinite Power Solutions, SiOnyx, Athenix Corp, Living Proof, Wakonda Technologies, Greenfuel Technologies, 1366 Technologies

Top Investors in ‘08 - by # Rounds

Participated In

Top 10 European Deals

European country league table

Highlights - US Stimulus for Cleantech Sector

Direct Spending:

$16.8 billion for renewable energy and energy efficiency $4.5 billion towards a smart grid $4.5 billion to improve energy efficiency of federal buildings $2.5 billion for research and development, and demonstration projects $2 billion for advanced battery grants $5 billion to weatherize homes $8 billion for high speed rail projects $19 billion for water infrastructure and clean up

Bond and Loan Programs:

$1.6 billion of new clean energy renewable bonds to wind, biomass, geothermal, hydropower, landfill gas, and marine renewables

$6 billion for renewable energy power generation and transmission projects (up to $500 million allotted for the development of leading edge biofuels that have been demonstrated and have commercial promise to substantially reduce GHGs)

Tax Incentives:

30% investment tax credit aimed at jumpstarting the domestic renewable energy industry and designed to make the US a more attractive place to manufacture solar, wind, and other clean technologies

Renewable energy production tax credits are extended for energy produced from wind, geothermal, hydropower and landfill gas

Tax credits for purchases of energy-efficient furnaces, windows and doors, or insulation Tax credit for families that purchase plug-in hybrid vehicles