Recent Posts:

Cleantech venture capital isn’t baseball

Rob Day: November 10, 2010, 10:09 AM

It's rugby.

Sorry, this is a bit of a stretch but I wanted to illustrate a basic learning many cleantech VCs have had to go through over the past few years (myself very much included).

I hear some investors say all the time that they're looking to "hit 'em where they ain't."  That quote comes from "Wee Willie" Keeler, a professional baseball player from a century ago, and when used by VCs, they're typically meaning that they're going to be looking for investment opportunities in sectors and market segments where other investors aren't also placing bets.  The theory being that therefore you can get out ahead of the crowd and establish investments in early leaders in a...

Smart grid: Lessons from networking?

Rob Day: November 8, 2010, 10:37 AM

In my last post, I mentioned the smart grid / energy intelligence "panel" at the Future Forward event last week.  It ended up being a great informal conversation between the panelists and attendees, so I thought I would share a bit of what I heard that I thought was interesting.

The participants included:

Eric Emmons, of Siemens Venture Capital, and one of the smartest guys I know on all things cleantech-related.

Martin Flusberg, CEO of Powerhouse Dynamics, a networking and energy software serial entrepreneur.  Powerhouse Dynamics has developed a home energy monitoring system.

Tom Pincince, President and CEO of Digital Lumens, a former networking hardware entrepreneur and...

A tale of two communities

Rob Day: November 6, 2010, 9:14 PM

I was asked to moderate a panel at the Future Forward executive retreat, a long-running event in the IT community in Boston.  Pretty impressive group of around 150 C-level IT execs in attendance, good smart speakers.  Made sense that the cleantech panel to be held as one of the breakout sessions would be about smart grid and customer energy information, since that is a sector that has strong overlap with IT.

Nevertheless, whereas the panel on cloud computing had something like 80 people, the panel on smart grid / energy data had 8.  The IT execs at the event clearly had very little interest.

Frankly, I can understand why.  These IT execs don't know any peers who've made it rich...

Q3: Behind the ugly numbers

Rob Day: November 1, 2010, 1:52 PM

The kind folks at Ernst & Young sent over their Q3 cleantech venture deal data this morning.  You've probably already seen the headlines, but suffice to say they've confirmed what many have been saying, that Q3 was a pretty big pullback quarter.  They tallied a 55% decline in deal dollars versus Q3 2009, and not only were deals getting smaller on average, but the total number of deals was also down 22%.

Can't say this was a surprise.  As we've been talking about for a while, it's seemed that the deal and dollar totals this year and last have been somewhat propped up by insider rounds.  And also, VCs are themselves running out of money, and it's a brutal time to be fundraising from...

Are subsidies for EVs a dumb idea?

Rob Day: October 30, 2010, 8:29 AM

I'm already getting pretty frustrated with the unnecessarily politicization and partisanship of clean technologies, particularly by outsiders.

In case you missed it, JD Power came out with a report (note: pdf) concluding that the market for electric vehicles and plug-in hybrid electric vehicles will underperform versus all the hype around the sector, through 2020.  It's well worth reading.

They base their conclusions on some critical assumptions, existing market data, and survey data.  It's a credible effort to forecast the market.  And it's getting talked about among those who opine on political issues:  This morning's WaPo editorial by Charles Lane is particularly breathless...

Much easier said than done

Rob Day: October 26, 2010, 4:20 PM

It's well understood that one of the most critical skills a venture capitalist must have is knowing when to walk away from a portfolio company.

I've heard this aspect of the job described in terms ranging from coldly mercenary to grudging acceptance and regret.  But regardless, no one bats 1.000, so at a certain point you need to cut your losses.  Sometimes the decision is easy, it's effectively made for you.  But in many cases VCs are faced with tough decisions about portfolio companies that went sideways but still have a chance and "just need another round of financing to turn the corner".  The problem is, very few companies do ever turn that corner, so the VC has to decide if...

Unicorn hunting season

Rob Day: October 20, 2010, 10:45 AM

Kind readers, by popular demand (and out of personal necessity), I'm going to start writing these columns a bit more infrequently and certainly with more brevity going forward.  Or at least that's the plan...  What's making me (and other investors) so busy right now?  Turns out right now is a pretty interesting time in our market.

I'm realizing that I've never been more overwhelmed with interesting dealflow.  When I look at the log we keep at my firm of incoming deals, the aggregate number of deals is only slightly up versus what I've historically seen.  But the deals that are coming in are harder to say "no" to at a cursory glance, on average.

For the six years I've been a...