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Energy and  The Process of Innovation Stephan Dolezalek VantagePoint Venture Partners April 8, 2010
VPVP CleanTech Portfolio Page  Electrification of Transport Energy Storage Grid Management LED Lighting and Building Efficiency Power Generation Bio-chemical Waste to Energy Solid oxide fuel cell Li-ion batteries Utility grade storage Advanced nanosilicon cathodes Electric vehicle enablement Electric vehicle Energy control systems Home energy solutions – North America Home energy solutions - Europe LED light bulb LED arrays Utility-scale solar thermal Municipal waste conversion Wastewater recovery Energy from Black Liquor CIGS panels BIPV 3rd generation solar cells High efficiency windows Bio butanol Algal biofuels Cellulosic ethanol LED wafers Next-gen LEDs Digital Controls Next-gen turbine design
Global Strategic Partners Page  (PG&E affiliate) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],To be announced …
Innovation Drives Economic Growth  Renewable Energy Electric Transport LED Lighting Energy Storage Energy Efficiency Smart Grid Water Technologies Biomaterials and  Biochemicals (with edits to 6 th  wave)
What it takes to build one transformational company INVENTION AND INNOVATION ENTREPRENEURSHIP GROWTH CAPITAL MANAGEMENT PARTNERSHIP EXECUTION…..  $ valuation
Page  1990’s European Entrepreneur Today’s American Entrepreneur The New Global Entrepreneur Perspective Matters Those things  would be great as  long as  I still get  my pension I don’t have to give up on a good  salary to get these stock options do I? I want everything they want and I don’t need much to pay the  rent and for  food
Page  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Land of Equal Opportunity ‘ New jobs come from new companies, not from small or big business’ 2009 Kaufman Foundation Study Result
Page  So how did we get from here…
Page  To here (in less than 5 years)? Now Everyone has an Electric
Example of rapid industry transformation  Page  2005 2006 2007 2008 VPVP invests in Tesla Motors  GM begins working on the Volt GM’s Bob Lutz on Tesla:  “That tore it for me,” says Lutz. “If some Silicon Valley startup can solve this equation, no one is going to tell me anymore that it’s unfeasible.”  VPVP invests in Better Place 2009 2009 Frankfurt Auto Show  Electric vehicles: From “dead” to industry-wide in less than 5 years “ Who Killed the Electric Car”  documentary released, profiling the short-lived EV experiments of the 1990s From the Credit Suisse October 2009 “Electric Vehicles” report: ,[object Object],[object Object],GM CEO Rick Wagoner’s speech opening the 2007 L.A. Auto Show:   “At the end of the day, the transformation from mechanical automobiles to vehicles that run on electricity will be as important as the transition from horses to horsepower.”  2004 2003 GM’s Bob  Lutz to Newsweek:  “The electrification of the automobile is inevitable." * GM’s Bob Lutz proposes that GM pursue an electric vehicle again –  but the idea "bombed" inside GM, he says.  "I got beaten down a number of times.” * Tesla announces  it will release a sports car using the same Li-Ion batteries GM declined to use when Lutz pushed in 2003 GM’s new Volt is showcased  at the 2007 Detroit Auto Show GM had produced the EV1 from 1996 to 1999 (for lease only), but then shut down the production line and pulled the cars off the road. From  Automotive News:   “ Virtually every automaker is displaying an electric vehicle or plug-in hybrid .” *  Newsweek,  Jan. 8, 2008. “Bob Lutz: The Man Who Revived the Electric Car.” VPVP proposes strategic partnership with Ford and Chrysler  (unsuccessful)   Renault and Better Place  commit to bring 100,000 Fluence ZE EVs to market (Tracing the experience of GM and VantagePoint)  Better Place  in talks with other major automakers
Page  Try to buy one of  these recently? Remember how hard TV manufacturers fought the requirement to cross over to digital broadcasting; saying customers would never switch in time?
LED’s are changing more than just TV Page
Moore’s law for Lighting – Haitz’s Law Page
Costs Decline as New Technologies Achieve Scale Page  Source: DisplaySearch; First Solar company website LCD Televisions Solar PV
Fresh off this morning’s press Page
LED’s meet Solar Innovation Merges Light Absorption and Generation Page
Modernization is the Ultimate Driver of Change  Page  1879:  Edison incandescent light bulb  1901:  First GE alternating current power coal plant 1885:  First internal combustion engine automobile produced 1930s:  Build- out of today’s electricity grid 1850 1925 1950 1875 1900 The Stone Age Didn’t End Because we Ran Out of Stones We’ve seen this movie before: Technological innovation yields better and cheaper ways of doing things ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Page  Telecom: from landlines to mobile Photography: from film to digital Energy: from fossil fuels to renewables History has taught us that once industry-transforming tipping points are reached, there is no looking back. In 2008, renewables represented nearly half of all net new capacity installed.  Source: US OECD Source: PMA Marketing Research ;  Source:  EIA
With every major wave of innovation, only a small number of winners emerges early on  1990 2000 1980 Personal computers Software Networking Biotech Internet Wind Solar (PV) Electric vehicles (EVs) EV infrastructure Solar-thermal Smart grid Power storage Biofuels Major winners in CleanTech are now starting to emerge 2010 Internet 2.0 2020
CleanTech Industries are Large, Diverse and Global Page  Electricity $1.9 trillion on  traditional generation Biofuels $442 billion on fuel energy spend Water $480 billion on water infrastructure sales Smart Grid $6.0 trillion on commercial and residential energy spend Storage $374 billion on peak load energy Buildings & Materials $665 billion on concrete and packaging EVs $1.1 trillion on  car sales Lighting $115 billion on electricity and fixtures 2008 Spend 2008 Spend Source: McKinsey
How does the development of clean energy technologies compare to past transformations?  Similarities Differences ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A venture capital view of Natural Gas Page  ,[object Object],[object Object],[object Object]

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Energy and the Process of Innovation

  • 1. Energy and The Process of Innovation Stephan Dolezalek VantagePoint Venture Partners April 8, 2010
  • 2. VPVP CleanTech Portfolio Page Electrification of Transport Energy Storage Grid Management LED Lighting and Building Efficiency Power Generation Bio-chemical Waste to Energy Solid oxide fuel cell Li-ion batteries Utility grade storage Advanced nanosilicon cathodes Electric vehicle enablement Electric vehicle Energy control systems Home energy solutions – North America Home energy solutions - Europe LED light bulb LED arrays Utility-scale solar thermal Municipal waste conversion Wastewater recovery Energy from Black Liquor CIGS panels BIPV 3rd generation solar cells High efficiency windows Bio butanol Algal biofuels Cellulosic ethanol LED wafers Next-gen LEDs Digital Controls Next-gen turbine design
  • 3.
  • 4. Innovation Drives Economic Growth Renewable Energy Electric Transport LED Lighting Energy Storage Energy Efficiency Smart Grid Water Technologies Biomaterials and Biochemicals (with edits to 6 th wave)
  • 5. What it takes to build one transformational company INVENTION AND INNOVATION ENTREPRENEURSHIP GROWTH CAPITAL MANAGEMENT PARTNERSHIP EXECUTION….. $ valuation
  • 6. Page 1990’s European Entrepreneur Today’s American Entrepreneur The New Global Entrepreneur Perspective Matters Those things would be great as long as I still get my pension I don’t have to give up on a good salary to get these stock options do I? I want everything they want and I don’t need much to pay the rent and for food
  • 7.
  • 8. Page So how did we get from here…
  • 9. Page To here (in less than 5 years)? Now Everyone has an Electric
  • 10.
  • 11. Page Try to buy one of these recently? Remember how hard TV manufacturers fought the requirement to cross over to digital broadcasting; saying customers would never switch in time?
  • 12. LED’s are changing more than just TV Page
  • 13. Moore’s law for Lighting – Haitz’s Law Page
  • 14. Costs Decline as New Technologies Achieve Scale Page Source: DisplaySearch; First Solar company website LCD Televisions Solar PV
  • 15. Fresh off this morning’s press Page
  • 16. LED’s meet Solar Innovation Merges Light Absorption and Generation Page
  • 17.
  • 18. Page Telecom: from landlines to mobile Photography: from film to digital Energy: from fossil fuels to renewables History has taught us that once industry-transforming tipping points are reached, there is no looking back. In 2008, renewables represented nearly half of all net new capacity installed. Source: US OECD Source: PMA Marketing Research ; Source: EIA
  • 19. With every major wave of innovation, only a small number of winners emerges early on 1990 2000 1980 Personal computers Software Networking Biotech Internet Wind Solar (PV) Electric vehicles (EVs) EV infrastructure Solar-thermal Smart grid Power storage Biofuels Major winners in CleanTech are now starting to emerge 2010 Internet 2.0 2020
  • 20. CleanTech Industries are Large, Diverse and Global Page Electricity $1.9 trillion on traditional generation Biofuels $442 billion on fuel energy spend Water $480 billion on water infrastructure sales Smart Grid $6.0 trillion on commercial and residential energy spend Storage $374 billion on peak load energy Buildings & Materials $665 billion on concrete and packaging EVs $1.1 trillion on car sales Lighting $115 billion on electricity and fixtures 2008 Spend 2008 Spend Source: McKinsey
  • 21.
  • 22.

Notas do Editor

  1. Presentation Title Goes Here Insert Version Number Here © 2003 Citrix Systems, Inc.—All rights reserved.
  2. About the Natural Edge Project, who produced this image: (from http://www.sourcewatch.org/index.php?title=The_Natural_Edge_Project) The Natural Edge Project (TNEP) "is an independent Sustainability Think-Tank based in Australia. TNEP operates as a partnership for education, research and policy development on innovation for sustainable development. "TNEP's mission is to contribute to and succinctly communicate leading research, case studies, tools, policy and strategies for achieving sustainable development across government, business and civil society. Driven by a team of early career Australians, the non-profit Project receives mentoring and support from a range of experts and leading organisations in Australia and internationally. "TNEP's main activities involve undertaking research, creating education material and curriculum, and developing industry and economic policy. This research is supported by a range of grants, sponsorship (both in-kind and financial) and donations.
  3. Presentation Title Goes Here Insert Version Number Here © 2003 Citrix Systems, Inc.—All rights reserved. Instructions for applying a different slide master to a specific slide: Go to the desired slide. Click Format | Slide Design. Hover cursor over the desired slide master (name will appear in popup text). Right-click on slide master and then choose Apply to Selected Slide. Do not perform a regular left click on the slide master; that will apply it to every slide in the deck. If you do that, press Ctrl+Z promptly.
  4. Presentation Title Goes Here Insert Version Number Here © 2003 Citrix Systems, Inc.—All rights reserved. Instructions for applying a different slide master to a specific slide: Go to the desired slide. Click Format | Slide Design. Hover cursor over the desired slide master (name will appear in popup text). Right-click on slide master and then choose Apply to Selected Slide. Do not perform a regular left click on the slide master; that will apply it to every slide in the deck. If you do that, press Ctrl+Z promptly.