clean tech presentation - mike rosenfeld
TRANSCRIPT
Mike Rosenfeld, Vice Consul USA Clean Technology Sector Lead
UK Trade & InvestmentBritish Consulate-General
Clean Tech Industry OverviewClean Tech Industry Overview
UK Trade & InvestmentUK Trade & Investment
US Network ConferenceUS Network Conference
Global Annual VC Investment
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2003 2004 2005 2006 2007 2008
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Invested
Number of Deals
Inve
stm
ent (
$ in
bill
ions
)
Q3 ‘08 represents a new record for quarterly investment total
•$2.6B globally
•$1.7B in North America - almost 70%
$6.6B ‘08 YTD vs. $6.1B same period ‘07
Num
b er
o f d
e al s
357
$4.4
$6.1
427 $6.6
328
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Current Situation & TrendsAnnual investments have steadily increased, with the industry picking up pace in 2006.
Investment profile follows a similar pattern in clean tech focused venture and private equity fund raising.
The first three quarters in 2008 have already seen more investment than all of 2007 and may reach up to $6 billion.
North America Annual Clean Tech VC Investment
($ billions)
$279m
$708m $477
m
$753m
$883m
$912m
$1.3b
$2.8b
$4.0b
$4.35b
Clean Tech Represents at Least Nine Different Markets
Water Desalination Purification/Filtration/Disinfection Remediation Wastewater Treatment Water Management
Recycling/Waste Mgmt. Reuse Reduction Reclamation Landfill
Air Emissions Measurement Controls Remediation
Greenbuilding Design/Build Green Building Materials Systems Optimization Retrofit/Refurbishment
Carbon Markets Registry Trading Reporting/Verification Finance
Energy Efficiency Lighting HVAC Power Optimization/Consumption Monitoring/Metering/Control
Carbon Abatement Technologies
Generation Technologies Low Carbon Fuels Carbon Capture & Storage Asset Management
Energy Storage Fuel Cells/Hydrogen Battery Technology Power Management Battery Management Nanomaterials Ultracapacitors
Smart Grid Energy Infrastructure Intelligent Network Grid Management Software Applications Load Management Optimization/Storage
Water Treatment & Conservation
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$901
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Water Treatment
WaterConservation
Wastewater
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Recycling
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GreenBuilding
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Smart Grid
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Transportation
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$4001Q
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Global Biofuels & Biomass
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Energy from Waste/Waste to Energy
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Growth of cumulative fuel cell units per
application between 1997 and 2006
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1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Large Stationary Small Stationary Portable Transport Courtesy & copyright of Fuel Cell Today
Thin Film Solar PV
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Concentrated Solar Thermal
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4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
40% of all Clean Tech VC investment is in Solar, due in large part to thin film and Concentrated Solar Thermal.
Thin film solar companies are raising massive war chests and ramping up quickly with next-generation manufacturing facilities.
Biofuels 2.0 has revived the sector with cellulosic biofuels and algae leading the way with large raises and capital expenditures.
Smart grid and water and beginning to gain momentum within VC investment community.
Green Building companies considered to be underinvested, although investment may come at decreased valuations, given the downtown in housing.
Other sectors continue to receive interest but have not experienced the sustained capital flows of these primary industry sectors.
Current Situation & Trends - RecapCurrent Situation & Trends - Recap
While record amounts of capital continue to flow into start-up and established companies, investors are placing bets with care.•The economic contraction may have caused even more capital to flow into the sector as investors gird their portfolio companies for what looks to be an extended recession.
First generation failures, such as biofuels, are an eyesore but important reminder in today’s investment community
Valuations, formerly stratospheric across the board, have come in line with a more appropriate risk/reward profile•Thin film solar may be the only exception, as massive late rounds come on billion dollar valuations.
Investors are placing a premium on established companies with significant revenue and traction.•Venture funds are still willing to take execution and technology risk, but market risk has become a non-starter.
Clean Tech in a Turbulent EconomyClean Tech in a Turbulent Economy