An overview of what do we mean by green business, as well as a definition of green business ecosystem

1. GREEN BUSINESS
TODAY
Oriol Pascual
oriol@enviu.org

2. AGENDA
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What do we mean by green business?
State-of-art of green business
Opportunities in the digitalisation of green
Green business ecosystems: how-to?
Photo: Amir Kockovic

3. GREEN BUSINESS
Environment
Economy
Society
Refers to business activities that create
environmental, social, and economic value.

4. GREEN BUSINESS
Not all green businesses are equal:
• Micro business: artisan craft, tourist guide
• Small business: service providers, retail
• Scalable business: distribution, cleantech
Photo: LifeInMegapixels

5. MICRO
BUSINESS
SMALL
BUSINESS
SCALABLE
BUSINESS
Sustain lifestyle
Sustain family
Go big
Geography!
Local
Local-Regional
Regional-Global
Entry barrier
Low
Low-medium
High
Job creation
Self (+1)
2-50
+50
Days
Weeks
Months
Business support
Basic accounting
Value-chain
management
Tech. dev.
Financial support
Savings
Personal loan
Subsidies +
participations
Capital risk
Role of technology
Low
- marketing -
Low-Medium
- inventory -
High
- core -
Goal
Time to market

6. BUSINESS IN EUROPE
1%
7%1%
91%
Micro business (1)
Small business (10-49)
Mid-Size (50-250)
Large business (+250)
Source: EU Eurofund

7. COMPOSITION
23%
6%
72%
Industry
Agriculture
Services
Europe
20%
3%
77%
Industry
Agriculture
Services
Jordan
Source: World Factbook

8. CLEANTECH
Cleantech refers to the development and
application of technology with the aim to improve
resource efficiency. It includes, amongst others:
• Renewable energy
• Mobility
• Water-related technologies
Photo: USACE

9. CHARACTERISTICS
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Technology-based: mainly hardware
Capital intensive
Long development periods
Highly dependent on gov. decisions
Photo: Brookhaven Nat. lab.

10. CLEANTECH CHALLENGES
Current challenges are not about fundamental
science. Are about:
• Complex financing & incentives
• Failure to communicate to consumers
• Poor sales channels

11. Many opportunities await in
the digitalisation of green

12. CLEANWEB
Efficiency
CLEANTECH
Cleanweb
INTERNET
OF
THINGS
Data &
networks
COLLABORATIVE
CONSUMPTION
Market
re-structuring

13. ELEMENTS
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Network-based technology is core
Resource-focus
Defined business model
Scalability
Photo: ogimogi

14. VALUE CREATION
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Helping consume resources more efficiently
Making environmental data meaningful
Disrupting cleantech financing models
Photo:MetroMile

15. ADVANTAGES
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Agile development
Capital light
Low-risk
Scalability
Photo: Desarrollando America Latina

16. 6 BUSINESS MODELS
1.
2.
3.
4.
5.
6.
Customer engagement platforms
Collaborative financing models
Decision-making tools
Loyalty programs
P2P lending resources
Data monitoring & management
Photo: szwerink

17. 1. CUSTOMER ENGAGEMENT
PLATFORMS
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Use data from utilities and public service providers
(energy, water, transport) to create customer value
though visualisation of data in ways that is meaningful
and actionable
Who? Opower, Tendrill, Dropcountr, Watersmart

18. 2. COLLABORATIVE
FINANCING MODELS
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Debt-based crowdfunding of renewable energy
projects with a defined return of investment
Who? Solar Mosaic, Milk the Sun, Tangerine Power

19. 3. DECISION-MAKING
TOOLS
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Saas to evaluate the potential of commercial and
private (PV) projects. Simulations include: how
much power can be generated, costs of an
installation, ROI, efficiency
Who? QuickSolar, Solarist

20. 4. LOYALTY PROGRAMS
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Get rewards for your sustainable/green actions:
saving water, energy, produce your own energy,
using public transport
Who? Changers, Ecostastic, PlaytoRide

21. 5. PEER-TO-PEER
LENDING RESOURCES
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Lending and/or renting between individuals of
hight costs goods, like housing and cars.
Access to functionality, instead of ownership
Who? Airbnb, SocialCar, Relay Rides

22. 6. DATA MONITORING
& MANAGEMENT
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Combination of hardware & software to monitor
energy, temperature, or smart homes
Who? Nest, Valta, Envirocar, Metromille

23. HOW TO DO IT?
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Learning by doing approach
Hackathon: bring developers and entrepreneurs
together for a weekend
Jordan & middle east has the ingredients: i.e.
Jordan Open Source Association, Oasis500
foto by BA Data

24. GREEN BUSINESS
ECOSYSTEMS

25. COMMUNITY PLAYERS
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Leaders: entrepreneurs
Feeders: government, universities,
incubators, investors, mentors, service
providers, large companies
Photo:madlynlovewithlife

26. FRAMEWORK TO BUILD
A STARTUP COMMUNITY
1. Entrepreneurs must lead the startup community
2. Leaders must have a long-term commitment
3. Community must be inclusive of anyone that
wants to participate in it
4. Community must have continual that engage
the entire entrepreneurial stack
Based on The Boulder Thesis
Photo: Rocky Mountain Joe

27. ROLES
Entrepreneurs
Lead the community
Government!
Support vs “create”
Provide a “risk-free” environment
Universities
Provide students, professors, research labs,
entrepr. programs, tech transfer offi., space
Investors
Long-term support to the community, connect,
perspective
Mentors
Experience & know-how: for free
Service proviers
Lawyers, accountants, recruiters, consultants
Large companies
Space & resources
Encourage startups to enhance the co. ecosystem

28. INCUBATION PROGRAMS
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Designed to support entrepreneurs and reduce
startup risks
Structured program, typically offering space,
mentoring, access to network, & capital
Also known as “accelerators”
Public & private
Photo:rundedbygravity

29. INCUBATION PROGRAMS
TRADITIONAL
MODEL
Funding
Goal
Format
Costs!
for entrepreneur
Entry barrier
NEW
MODEL
Public
Private
Increase
# local business
Investment-ready
Lectures
Mentor intensive
Subsidised
Equity
Low
High

30. M
!
H
T
Y
US has MORE support
programs to early-stage
entrepreneurs than the EU

31. Accumulated number of incubators in
top 10 EU countries by GDP

32. BARCELONA
ECOSYSTEM

33. Spain
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The first incubation program launched in 1989
Currently, Spain hosts 38 startup programs - most
launched after 2010
Ticket size: between 20-60K
Average equity share across accelerators: 8-14%

34. Catalonia
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7 m. inhabitants - Barcelona: 5.1 m
Catalonia produces 1% of the world’s scientific
output

35. Barcelona
9 accelerators/incubators in Barcelona
Barcelona, leads in clean tech sub-categories:
• Smart City
• World Mobile Capital
• Large “sharing economy” community

36. Rise of the renewables
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1997-2013: Spain became a world leader in PV
and wind energy production
Of all Spanish patents, 43,6% are related to solar
Spain is the 5th country in the world in number of
patents in renewables, after US, Japan, Germany
& UK

37. Fall of the renewables
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Today, Spain is an unattractive and risky market to
invest in renewables
Of the 50 factories PV silica and related in 2011,
only 10% remain open today, with a focus in
inverters and exports
photo by treedork

38. The Barcelona entrepreneur
Barcelona
Silicon Valley
33.29
34.12
5% / 95%
10% / 90%
Education (dropout vs. master+PhD)
1 : 10
1 : 2.5
Serial entrepreneur
41%
56%
% non-technical founding teams
12%
16%
Customer (B2B vs B2C)
5:2
2:1
Working hours per day
8.25
9.95
Age
Gender (F/M)
Source: Telefonica

39. Ecosystem
Government
programs
Trade Shows
Incubators
Startups
Clean tech
entrepreneurship
BARCELONA
Universities
Investors
Dedicated
Spaces

40. Clean tech Incubators
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KIC InnoEnergy
Fundación Repsol
Eco-Emprenedor XXI

41. Government programs
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Green Economy Plan
TECNIO/ACC10
Biocat

42. 22@
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Transformation of a neighbourhood
Private foundation managed the transition
After 10 year: +1500 (tech) companies

43. Universities
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UPC - Campus Energia
ESADE
IESE - Clean tech Venture Forum

44. Investment
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Business Angel Networks
Business School forums (ESADE -IESE)
Engineers’ fund
Keiretsu

45. Other Interesting players
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Sant Pau
Regional Centre for Cleaner Production
Barcelona Lab
IAAC + Valldaura

46. Trade shows
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EV Symposium
Smart City Expo
Mobile World Congress

47. BARCELONA
Green Startups

48. Smart Citizen
Environmental data monitoring board &
community

49. Enerbyte
Using behavioural science to change
consumption patterns

50. Urbiotica
Smart City solutions

51. BNstar
Smart water & energy consumption

52. Volta BCN
Electric motorbike made in BCN

53. What works
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Barcelona attracts international talent, and retains
local due to the attractiveness of the city itself
Barcelona is Mobile World Capital
Proactive local government; “business friendly”
Bottom-up entrepreneurial community
Catalonia produces 1% of all research in the world but does’t have a direct translation in valorisation of
this science

54. To improve
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Lack of ambition: local startups think small, a local win is
enough rather than conquer the world
English is not yet common language amongst all society
To fund a limited company is expensive and bureaucratic
Need for more “learning by doing” education, rather than
fact-based education

55. To improve
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More success stories
Early stage funding clearly insufficient
Many players, but fragile ecosystem due to insufficient
funding resources
Not enough clean tech projects with high growth potential

56. SILICON VALLEY
ECOSYSTEM

58. RECIPE FOR SUCCESS
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Political will & smart policy
Entrepreneurship & innovation
Money; Ca 40% of global VC in clean
Circumstance
Time!

59. SAN JOSE
GREEN VISION 2015
1. 25.000 new clean-tech jobs
2. 50% energy reduction per capita
3. 100% renewable electricity
4. Green buildings; 50 m. sq. feet
5. Zero waste landfill
6. 100% re-use of waste water
7. Development general plan
8. 100% public fleet using alternative fuels
9. Smart, zero-net street-lighting
10.100 miles interconnected bike trails
Photo:tq2cute

60. INCUBATORS
1. San Jose Environmental Business Centre (public)
2. Plug & Play (private)

61. INVESTORS
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740 funds in the Valley
20+ angel investors groups
2930 deals = 22 b (2008)
Photo: stevendamron

62. INVESTMENTS TODAY
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Winners:efficiency software, enhancement
clean energy
Losers: capital-intensive, batteries, fuels
Photo: stevendamron

63. SILICON VALLEY
Green Startups

64. SUNPOWER
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The most efficient PVs on the planet
1985; Stanford spin out
First used by NASA
400 employees
Vertical approach
Photo:Hermisillo & Asociados

65. TESLA MOTORS
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High-end electric cars
Innovation; unique engine & battery technology
Partnering with Ford to provide battery technology
Photo: GiuDAlberti

66. Final thoughts
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Regulation can be an enabler or barrier for clean
tech to create a positive impact
Clean tech is evolving towards new forms that have
IT as central element
Startup ecosystems start with the entrepreneurs, they
lead the way
It takes time to build an entrepreneurial ecosystem

67. Oriol Pascual
oriol@enviu.org
Oriolpascual.com
@onsustain