valley of the death
TRANSCRIPT
Valley of the Death
Major Commercialization Challenge for
Cleantech Start-ups
Opal Financial Group
Energy Investment ForumAustin TX, January 25-26, 2012
cxo360 Wind Portfolio
Q3/2011 Cleantech VC Investments
>>> Storage $514M 19 deals
>>> Solar $350M 33 deals
>>> Efficiency $223M 34 deals
>>> Transport’ $177M 15 deals
>>> Wind 0 0
Stages of Technology Development
Proof of
Concept
CommercialProduct
Stages of Technology Development
$10M-$25M
Proof of
Concept
BankableProduct
Obstacles
Expensive:
>>> A utility scale single turbine cost $1.5-$2M per unit.
>>> Need multiple units for wake impact and statistics
Customers refuse to participate in pilots:
>>> Budget commitments to financer
>>> Warranty/insurance limitations
How to Overcome the Valley of the Death
>>> Government programs (Bloomberg, BIRDF,..)
>>> Partner with a utility size research institute (NREL, NIRE,…)
>>> Buy your own turbines (used?)
>>> Partner early on with a major turbine supplier
>>> Partner with an old wind farm
>>> Find the least resistant path (May be longer but safer)
Summary
Make sure the business plan addresses the Valley of the Death issue at the very beginning and not as an afterthought
Thank you
