growing investments in new clean technologies, but do they match customer demand?
TRANSCRIPT
Cleantech – an investment trend in its infancy?
TBLI EuropeNovember 13, Amsterdam
Richard Youngman, MD Europe, Cleantech Group
Cleantech is way broader a theme than just energy
T y p ic a lly U b iq u it o u s
G lo b a l A p p lic a t io n
s
C L E A N T E C H 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.
E NE RG Y : Includes Energy Generation, Energy Storage, Energy Infrastructure and Energy Efficiency .
TR AN SP O
R TATION :
Includes
vehicles
design,
fuels and
logistics
A IR &
E NVIRO NM EN T : Includes remediation, emission contr
ol, trading and offsets, etc.
R EC YC LIN G &
W AS TE :
Includes
various
recycling
services and wast
e treatment services.
W ATE R
: Includ
es filtration,
purification, water conservation and wastewater treatment, etc.
M AN U
F A CTU RIN G/ IND U
S TRY :
Includes
monitoring/contr
ol appliance and
smart production industries.
M ATE
R IALS : Includes
environmental friendly
nano, bio, che
mical materials, etc.
A GR ICU LTU RE :
Includes
land manageme
nt, natur
al pesticides, natur
al fertilizers, etc.
D o in g m o r e w it h le s s
Cleantech Group – accelerating the next wave of innovation
U p c o m in g , e n t r e p r e n e u r ia l c o m p a n ie s
In v e s t o r s ( VC s , a n g e ls , e t c . )
C le a n t e c h N e t w o r k ™: Introduced “cleantech” concept in 2002; provides d e a l f lo w a n d r e s e a r c h p r o d u c t s and global C le a n t e c h F o r u m s ™; 1 5 0 0 + in v e s t o r m e m b e r s , 5000+ Forum attendees, 17 forums worldwide, $1.3B+ raised by Cleantech Forum™ presenting companies.
T h e C le a n t e c h G r o u p p r o v id e s t h e e v e n t s a n d in f o r m a t io n s e r v ic e s t h a t a llo w t h e r ig h t c o n n e c t io n s b e m a d e , f o r b u s in e s s t o g e t d o n e – a n d t h u s h e lp t h e o v e r a ll m a r k e t a c c e le r a t e
Cleantech Group – accelerating the next wave of innovation
U p c o m in g , e n t r e p r e n e u r ia l c o m p a n ie s
In v e s t o r s ( VC s , a n g e ls , e t c . )
B u y e r s – c o r p o r a t e s ( p r o c u r em e n t p a r t n e r in g , M & A ) & p u b lic s e c t o r
C le a n t e c h A c c e le r a t o r – in t r o d u c e d t o a s s is t c o r p o r a t io n s a n d p u b lic s e c t o r b o d ie s t o id e n t if y c le a n t e c h s o lu t io n s a n d o p p o r t u n it ie s
C le a n t e c h N e t w o r k ™: Introduced “cleantech” concept in 2002; provides d e a l f lo w a n d r e s e a r c h p r o d u c t s and global C le a n t e c h F o r u m s ™; 1 5 0 0 + in v e s t o r m e m b e r s , 5000+ Forum attendees, 17 forums worldwide, $1.3B+ raised by Cleantech Forum™ presenting companies.
R&D/IP creation (universities & research institutes)
Cleantech Group – helping the whole ecosystem accelerate
U p c o m in g , e n t r e p r e n e u r ia l c o m p a n ie s
In v e s t o r s ( VC s , a n g e ls , e t c . )
Advisors & service providers
B u y e r s – c o r p o r a t e s ( p r o c u r e me n t p a r t n e r in g , M & A ) & p u b lic s e c t o r
Capital providers (LPs)
R&D/IP creation (universities & research institutes)New entrants
Govt/Policy makers
A ll p la y e r s in t h e e c o s y s t e m a r e c lie n t s o r p r o s p e c t
c l ie n t s w h o c o u ld b e n e f it f r o m o u r s e r v ic e s
C le a n t e c h N e t w o r k ™: Introduced “cleantech” concept in 2002; provides d e a l f lo w a n d r e s e a r c h p r o d u c t s and global C le a n t e c h F o r u m s ™; 1 5 0 0 + in v e s t o r m e m b e r s , 5000+ Forum attendees, 17 Forums worldwide, $1.3B+ raised by Cleantech Forum™ presenting companies.
C le a n t e c h A c c e le r a t o r ™: Assists corporations, investors & governments, to develop cleantech markets and opportunities
Around the cleantech innovation world….
…the big picture in numbers and charts
…using Venture Capital as the proxy
…looking at it sectorally, first
Cleantech has fast developed into a VC category
T o p 6 U . S . V e n t u r e C a p it a l In d u s t r ie s , P e r c e n t C h a n g e 2 0 0 1 t o 2 0 0 7
Source: Cleantech Group & Thomson
Global Venture Capital - still seeing strong growth….Q4 will be fascinating
• 3Q08 all-time record quarter: $2.2B+
• 2008 record ytd at $6.2B - already exceeds 2007 ($6B)
Breakout for Smart Grid?
• Market catalyst: grid companies responding to pending introduction of EV’s?
And investment in Green Building technologies remains a disappointment for us - Q2 ‘08 looks like it might be a blip
Around the cleantech innovation world….
…the big picture in numbers and charts
…using Venture Capital as the proxy
…looking at it geographically
But there are early indicators that Cleantech will increase its diversification outside of Energy Generation
•M a n u f a c t u r in g / In d u s t r ia l d o u b le d , led by UK Metalysis €20M and France Bionersis €20M deals.
•M a t e r ia ls q u a d r u p le d , driven by UK Plastic Logic €76M deal.•R e c y c lin g & W a s t e m o r e t h a n t r ip le d , led by Germany Sic Processing €53M deal.
•T r a n s p o r t a t io n u p 9 X , dominated by Norwegian Think Global €44M deal.
Cleantech investment – where are we, where are we heading?
• 2 0 0 2 - 0 6 – t h e p io n e e r in g • S m a ll n u m b e r o f s m a ll c le a n t e c h f u n d s s t r u g g lin g f o r r e c o g n it io n .
A ‘ c lu b ’ f e e l.
• P le n t y o f ‘ c le a n t e c h ’ d e a ls d o n e b y o t h e r s , b u t n o t n e c e s s a r ily t h o u g h t o f a s ‘ c le a n t e c h ’
• 2 0 0 7 - 0 8 – t h e f ir s t g o ld e n a g e o f c le a n t e c h in v e s t m e n t
• P e r c e p t io n s c h a n g e a s t o t h e n a t u r e o f t h e c h a lle n g e s a n d w h o it im p a c t s . R e c o r d le v e ls o f d e a ls d o n e , d r iv e n b y h ig h o il / c o m m o d it y p r ic e s & le g is la t io n .
• H ig h le v e ls o f ( c r o s s - b o r d e r ) c o lla b o r a t io n .
• L o t s o f n e w m o n e y e n t e r s t h e s p a c e – w e h a v e c o u n t e d o v e r 4 0 0 u n iq u e in v e s t o r e n t it ie s w h o h a v e in v e s t e d in a t le a s t o n e c le a n t e c h c o m p a n y in E u r o p e in t h e la s t 1 8 m o n t h s a lo n e – a n g e l f u n d s , f a m ily o f f ic e s , V C f u n d s , C V C s . . .
• 2 0 0 9 –1 0 - b e y o n d t h e c r e d it c r is is• D r iv e r s a r e s t il l t h e r e b u t e x p e c t in g t o s e e in v e s t o r s p u ll b a c k ,
n o t p u ll o u t – p a r t , a p s y c h o lo g ic a l im p a c t a n d p a r t a r e a c t io n t o t h e n e e d s o f p o r t f o lio c o m p a n ie s
• S o m e g r e a t o p p o r t u n it ie s f o r e a r ly - s t a g e in v e s t o r s ? V a lu a t io n s d o w n ? L o t s o f w a s t e a n d in e f f ic ie n c y w it h in c u r r e n t p r o c e s s e s a n d in d u s t r ia l t e c h n o lo g ie s
• L e a d e r s h ip in C o p e n h a g e n – a n im p o r t a n t s ig n a l? C r e a t in g m a r k e t s , in c e n t iv e s , p r ic e s ig n a ls , s t a n d a r d s , t o s t im u la t e p u r c h a s in g b e h a v io u r
Challenges on the Road Ahead for Cleantech (venture) investment
• G o in g B e y o n d VC • C r e a t in g In n o v a t io n s a n d L in k a g e s in D e b t a n d E q u it y M a r k e t s -
P r o je c t F in a n c e , P r iv a t e E q u it y , L e a s in g , C a r b o n C r e d it s , e t c .
• G o in g b e y o n d E n e r g y G e n e r a t io n .
• C h a n g in g p e r c e p t io n s a s t o t h e n a t u r e o f t h e c h a lle n g e s a n d w h o it im p a c t s
• G o in g B e y o n d D e v e lo p in g Te c h n o lo g y ( le s s p u s h , m o r e p u ll)
• B u ild in g b ig - s m a ll b u s in e s s p a r t n e r s h ip s ( J V s , l ic e n s e s , R & D , m a r k e t in g a ll ia n c e s , p ilo t s a n d d e m o s , t e s t c e n t r e s , e t c . ) – c o r p o r a t e f r ie n d s o r f o e s ?
• In n o v a t in g w it h n e w b u s in e s s m o d e ls n o t ju s t t e c h n o lo g y ( e . g . B e t t e r P la c e ) – t h r e a t s a n d o p p o r t u n it ie s f o r in c u m b e n t s
• P u b lic o r g a n is a t io n s c a n le a d t h e w a y in t h e ir o w n p r o c u r e m e n t • D r iv in g D o w n C o s t !!!
Thank You!
J o in t h e C le a n t e c h N e t w o r k ™A c c e s s o u r s e r v ic e s . P r o f it f r o m a c c e le r a t in g t h e n e x t
w a v e o f in n o v a t io n
See You At:
Cleantech Forum XX Shanghai * December 3-5 2008Cleantech Forum XXI San Francisco * February 23-25 2009
C le a n t e c h F o r u m X X II C o p e n h a g e n * A p r il 2 8 -3 0 2 0 0 9
w w w . c le a n t e c h . c o mr ic h a r d . y o u n g m a n @c le a n t e c h . c o m