My previous post on this topic was about having the right funding group to assist with getting the right money at the right time. This post is more about the difference in getting funding for “Green or Clean Tech” 6  months ago versus what it will take to get funding in 2009. My previous post on this topic was about having the right funding group to assist with getting the right money at the right time. This post is more about the difference in getting funding for “Green or Clean Tech” 6  months ago versus what it will take to get funding in 2009.

Back in the day……(2007-1st half 2008) if an innovator had a good business plan and a solid management team he was able to get at least a few term sheets (except for the bio-diesel folks). There was the swagger that we saw with the internet boom of the 2000’s.

That’s all old news now and it has been suprizing to see how long it took to change….from August of 2008 til now the tables have changed. Moving into 2009 we are seeing that the Clean Tech company will have to have more venture funding to make it to the mezzanine/2nd round money (which in the Clean Tech world is a rather large amount of capital) why? Because the venture funded company will have to bring more to the table than just a proof of concept.

The table stakes are much higher, along with a POC and a solid management team are offtake agreements, personal guarentees, revenue contracts and 3rd party validation of technology.

Funding sources are looking at all areas where risk can be mitigated, technology can be validated and revenue can be almost guarenteed.

Does this mean companies cannot get funded? NO, it means that they must have more of the items normally required for something like a loan versus getting venture or equity funding. This is where the big challenges will be moving forward into 2009/10. A vast amount of Green Technology is still in the Discovery/Start-up phase and does not have revenue. It will be important for the Government to help bridge the gap between the Proof of Concept stage and the Commercialization stage of a company.

Tags: Clean Funding, Green Financing, Green Funding, Green Venture Capital
Posted in Get Funded, What Funders Look For | No Comments »
Clean Technology Convergence
November 27th, 2008 by Kimo Storke

Besides the fact that Holidays are about the things that really matter…..being with loved ones, give back, reflection on eternal things and great food……holidays give me the time to reflect and do what I call “living in the margin”. Margin is the space in our lives that is quiet. Margin is where inspiration comes from, Margin is where the seeds of innovation comes from. It is in a Margin moment that I am writing this blog post.

Since my company funds green or clean technology business I have the privilege to getting to know many amazing entrepreneurs and innovators who are taking their dreams to market, many will fail, some will make it….and its about the ones that make it (or are on the verge) of making it that are exciting because I am seeing a  convergence of proven technologies which when implemented alone are just OK…..but when assembled together form a powerful solution….for instance….Wind, Solar, Water and Geothermal. These are not new technologies…..yes they need some improvement, yes they need government tax breaks to be economically feasible but…….when done properly in the right setting and application (behind the grid, net metering) they can be a powerful tool which can offset power consumption by at least 30-60% annually.

So what’s the takeaway here?…..well this is where U come in….My company and my partners are building an eco-system of clean tech suppliers who are past the proven stage and are into projects. Some of the projects are very specific, some are in conceptual stages……It is the conceptual projects where we are being asked to provide new innovation and “Margin” ideas that work that I would like input from U.

If you have a proven technology in Clean Tech and you are thinking about marrying it to another Clean Tech then I would love to hear from you.

Hope all of you have a great Thanksgiving season, and that you get to “Live in the Margin” a little bit.

Sincerely,

Kimo

Filed under: Green Energy For Business, Green Energy for Entrepreneurs by Kimo Storke