Transcript Presentation - Sustainable Silicon Valley

Creating an Ecosystem for a Carbon
Based Planet
Sustainable Silicon Valley & Center for Carbon Removal
DLA Piper
October 18th, 2016
Nancy E. Pfund
Founder & Managing Partner
DBL Partners
Confidential, Not for Distribution
DBL Partners: A Double Bottom Line Venture Capital Firm
We are a San Francisco-based firm with a “Double Bottom Line”
approach to venture capital investing
• Pioneering impact venture capital firm: No Sacrifice approach to investing
• Spun out from JPMorgan in 2008, legacy Hambrecht & Quist ventures group
• Over the last twelve years , the success of our portfolio companies and double bottom line assistance to our management teams has
helped to put impact investing on the map
• As a result, many long-held biases are melting away as mission-related business moves to the mainstream
• Our approach allows for hands-on, proactive pursuit of mission and return, meeting a growing demand among investors for positive,
not passive, portfolio development
Results:
•
•
•
•
$75M Fund I (2004 vintage) – Seven exits, five IPOs
$150.8M Fund II (2010 vintage) – One IPO, One M&A Exit
$408M Fund III (Closed June 2015) – Currently Investing
Market leading companies creating thousands of jobs with meaningful impact
2
Why Cleantech?
•
Enormous Markets
• $6 Trillion Global Energy
Market
•
Climate Change Imperatives
•
Centuries old technology was
ripe for disruption
•
Huge advances in technology
and cost reduction
•
Changing consumer
preferences
What initially interested venture capitalists in clean
technology?
Image: Techcrunch.com
Cleantech Investment: Not for the Faint of Heart
Performance of WilderHill Clean Energy Index since inception: 3/1/2015
PBW
Nasdaq
Bubble building: valuations
over-inflated
S&P
Bubble burst:
valuations
correction
Over-correction of
valuations
Ongoing recovery of valuations
New Investment in Clean Energy hits new high: $329B Globally in 2015
(includes all asset classes: VC, PE, Public Equity, Corp R&D, Gov’t R&D, Project Finance)
VC/PE New Investment in Clean Energy: continuing to rebuild
$B of Global new VC/PE investment in clean energy: source: Bloomberg New Energy Finance
$B of US new VC investment in clean energy: source: PWC Moneytree
Tourist Trap
Over-Investment at
Overheated valuations
Supportive Investments
during industry consolidation
Under-Investment and
US/Global divergence
Market Opportunities are Increasing
The sharing Space tools
economy Smart Cities
Shared Assets
Off Grid
Graphene
Population
CCS
Big Data/
Agriculture
Smart Grid
Efficiency
Circular Solar 2.0
Batteries Home Energy Mobility
economy
Tech
Financing 2.0
3D
Electric
Internet
Biofuels
Functional
Printing
Vehicles
of things
Waste
Energy
Distributed materials
Solar, Wind
Water Tech
2Energy
Prosumers
energy
Developing World
Climate Change
Urbanization
Population Growth
Energy Security
Water Scarcity Recycling
Resource Scarcity
1990s
Pollution 1980s
2000s
7
The Cleantech “Valleys of Death:” Useful, but
Not Predictive
Image: Sandia National Labs
Where is pre-venture money available?
Foundations
Impact Firms
Family Offices
Case Study: Carbon Removal
• Important part of 21st clean economy, but very difficult
• Lack of historical data for measuring and monetizing risk
pose obstacle for insurance and financial institutions.
• The CCS market is extremely sensitive to policy
• High profile failures with very few successes
C6
Resources
• Many Carbon Capture companies still too focused on
fossil fuel applications
Time to Get Creative
• Regenerative and Carbon Farming – These
investments can be profitable regardless of
carbon removal potential
• Example – Soil sequestration with
compost application on grazing
rangeland
• Conservation, Reforestation and
Sustainable Forestry– Garners Support from
important stakeholders
• Example – Sustainable Forestry
Initiative
• Cemeteries? Better Place Forests
• Example – Creates, operates and
maintains forest cemeteries
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The Case of Primus Power – A Long Road ahead for
Carbon Removal
$2M
Russia Kazakhstan
Nanotechnology Fund
Series A
Grant
$14M
2009
Grant
Grant
Series B
Series C
$1M
Series D
2015
2016
Building the 21st century clean energy
economy requires many approaches…
Keep your eye on the market
opportunity and how well it competes
for mind share and market share