entrepreneurial opportunities in cleantech · lessons from silicon valley: slide #6 launching a...

Entrepreneurial Opportunities In Cleantech�

Workshop at Sweden - U.S. Entrepreneurial Forum 2008

October 23, 2008

Prepared by Tom Kosnik Fenwick and West Consulting Professor

Agenda • Cleantech VC investment Trends • Cleantech Categories • Exercise: Which Categories interest you? • Exercise: Where is your category on the adoption

life cycle? • Clusters, Circles of Influence, and Context • Forces in context affecting adoption of cleantech

innovations • Cleantech Entrepreneurs going global face a

“double Chasm” • How would you approach visionary VCs in SV?

Energy Related VC Investments Soared

in 2008

$0

$1 000

$2 000

$3 000

$4 000

$5 000

$6 000

$7 000

Energy VC Investments

Energy VC Investments

USD Millions

CleanTech Categories

1.  Clean Air 2.  Clean Water 3.  Waste Treatment 4.  Energy Efficiency 5.  Green Building 6.  Renewable Energy 7.  Smart Power 8.  Clean Transportation 9.  Clean Cosmetics 10.  Cleantech Social Movements

Categories Adapted from:

® Copyright 2007 Mohr, Davidow Ventures

Time

Rev

enue

Gro

wth

Technology Adoption Life Cycle

Growth Market

Mature Market

Declining Market

Indefinitely elastic middle

End of Life

A

Fault Line!

E

D C

B

Where is your Cleantech Category

here in Sweden?

Chasm

Source: Moore Geoffrey A. (2002), Crossing the Chasm; Moore (2005), Dealing with Darwin

Lessons from Silicon Valley: Slide #6

Launching a Cleantech Venture:�Clusters, Circles of Influence, and Context �

Presented by Tom Kosnik, Fenwick and West Consulting Professor, Stanford Technology Ventures Program

October 23, 2008

This part of the workshop is based on an upcoming book: Lena Ramfelt & Thomas J. Kosnik (Under Review)

Circles of Influence

If you circulate any part of this presentation please give credit to the authors.


Launching a Cleantech Venture: �Clusters, Circles of Influence, and Context �

•  Clusters, •  Circles of Influence (CoI) •  Context •  Forces in context that may affect adoption of a

cleantech innovation


What’s a cluster?

•  A region engaged in entrepreneurial activity. •  Bigger than a single city. •  Smaller (usually) than a state or country. •  Examples:

–  Silicon Valley –  Kista, Sweden (Wireless Valley) –  Singapore a cluster that is also a country –  Beijing –  Hong Kong –  Shanghai –  Route 128 outside Boston –  Palau (a country that is becoming a cluster)


Examples of clusters


What Are the Circles of Influence? �Players who bet stakes on you – �but you’ve got to know the code!

Players

Code

Stakes

Circles of Influence!


Players help entrepreneurs get stakes �to play the game

•  Venture capital firms

•  Angel Investors

•  Research Universities (Stanford and Cal)

•  Silicon Valley Law firms

•  Investment banking firms

•  Stock exchanges (NASDAQ, NYSE, etc.)

•  TiE, Monte Jade, other societies

•  BASES, ASES, Energy Crossroads, SWIB

•  Public Accounting firms

•  Consulting firms

•  Executive search firms

•  Business and Technical News Media, Blogs…

•  Joint Venture Silicon Valley

•  Government agencies

The major players in

Silicon Valley…

How are they similar or different in your home cluster?


The stakes include…

Money Time

Talent

Technology

And much more…

Relationships & Social Networks

Passion


But to get the players to put up the stakes, you’ve got to know the code…

•  Rules of the game and rules of thumb •  Explicit and implicit •  Verbal and written •  Communicated in public and private •  Hard to learn and easy to forget •  Rooted in cultures of countries and regions •  Varies across industries and functional disciplines.


Context surrounds the Circles of Influence �in any cluster

Players

Code

Stakes


Why is Context Important?

•  It affects the adoption of cleantech innovations.

•  It affects your sources of funding •  In the short run it’s outside your control. •  In the long run, a wise community of

entrepreneurs, investors, community leaders, and government leaders can change your context – through the Circles of Influence.


Forces in context affect adoption of cleantech innovations

Players

Code

Stakes

What 5 context factors have biggest impact on adoption of your Cleantech innovation?

17

Cleantech entrepreneurs face a “Double Chasm”

as you go global

18

The Technology Chasm

Adapted from: Moore (2002), Crossing the Chasm.

Chasm

Early Market

Bowling Alley

Tornado Main Street

Total Assimilation

Techies Visionaries Pragmatists Conservatives Skeptics

Resistance to Risk

19

The Cultural Chasm

Language Laws

Circles of Influence Ethics

Religion Education

Culture

Business-Government

Provincial Code

Business Ecosystem

“Foreign” High-tech venture

Adopters in a new country’s Local culture

Lack of Experience Lack of Trust

Visionary VCs are�Fishing for

Cleantech Winners.�

How would you approach Visionary Cleantech VCs

in Silicon Valley? Kleiner Perkins Caulfield and Byers

21 partners focused on Cleantech, including Al Gore and John Doerr

http://kpcb.com

Khosla Ventuers Vinod Khosla left KPCB to focus on cleantech

http://www.khoslaventures.com/

Mohr Davidow Ventures Eric Straser was an early mover in cleantech VC

http://mdv.com/

Foundation Capital Foundation Capital recognized for leadership in cleantech. Steve Vassalo was an early mover

http://www.foundationcapital.com/

Draper, Fisher Jurvetson (DFJ)

Global focus, Raj Atluru was early mover in clearntech

http://dfj.com/

Technology Partners Ira Ehrenpreis was an early mover in cleantech

http://www.technologypartners.com/

Lightspeed Venture Partners

Moving rapidly into cleantech. Andrew Chung is a rising star.

http://www.lightspeedvp.com/

Where can you �learn more?

(California) Cleantech Open http://www.cleantechopen.com/

DFJ Entrepreneurial Thought Leaders (ETL) Program http://etl.stanford.edu

Energy Crossroads: http://energycrossroads.org/

Global Entrepreneurial Marketing (GEM) http://gem.stanford.edu

Stanford Technology Ventures Program: http://stvp.stanford.edu

STVP Educators Corner http://ecorner.stanford.edu/

Thank you for your insights in this

workshop!�

Tom Kosnik Skype: thomas.j.kosnik

1-650 450 3330

The Three Horizons

Time

1. Defend & extend current critical businesses

2. Build momentum of emerging new businesses

3. Create options for future businesses

Horizon 1 Next 12 months Market share, revenues, margins

Horizon 2 12 to 30 months away Segment share, profitable growth, CAGR forecast

Horizon 3 Next generation Positioning the Next Big Thing

Adapted from Baghadi, Coly and White (1999) The Alchemy of Growth

The Three Horizons

Time

1. Defend & extend current critical businesses

2. Build momentum of emerging new businesses

3. Create options for future businesses

Adapted from Baghadi, Coly and White (1999) The Alchemy of Growth

Product categories: …………………………….

Markets - geos: …………………………………

Markets – verticals: …………………………….

Product categories: ………………………..

Markets - geos: …………………………….

Markets – verticals: ………………………..

Product categories:……

Markets - geos:………

Markets – verticals:…….

Stanford Center for Professional Development • 26

How might Porter’s Five Forces - And Other Factors – Affect your Cleantech Category?

Technological Change

Ecological Change

Social Activism & Interest Groups

Macroeconomic Change

Political Situation

Regulation, Deregulation, Re-regulation

Changes in Customers’ Customers

Demographic/ Psychographic Changes

Adapted from Porter, Michael (1980), Competitive Strategy, Free Press

Cleantech�Chasm Crossing is scary and fun!

entrepreneurial opportunities in cleantech · lessons from silicon valley: slide #6 launching a...

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