By Alison van Diggelen, host of Fresh Dialogues
A capacity crowd packed Sun Microsystem’s historic Santa Clara campus auditorium last Friday.
After introductions by hosts Susan Lucas Conwell of SDForum and Linda Holroyd of FountainBlue, a rousing challenge to the green tech crowd came from Mayor Chuck Reed : “We want YOU to make us energy independent and pull us out of this recession!” Tall order, no pressure guys.
The Green Mayor emphasized the trillion dollar opportunity in the energy market and anticipates clean tech will receive between $40-$60 billion from President Obama’s stimulus package, most of which will benefit Silicon Valley. He underlined Silicon Valley’s reputation as the best place in the world to start and grow a business; and urged entrepreneurs to call him if they need land or buildings. The guy is serious and announced his number several times: (408) 535-4800.
The first panel “Where’s the Green in Clean?”assembled a group of top VCs: Laurie Yoler of Growth Point Technologies, Nancy Pfund – DBL Investors, Kjerstin Barley – GE Capital, and Stephen Eichenlaub -Intel Capital. Nancy Pfund addressed the issue of the price premium for clean tech products. She says some consumers are willing to pay a premium for efficiency improvements, but for a global thriving business, we need to get to parity with existing energy sources. Looking at the total cost of ownership (TCO) is key. ie a Tesla Roadster may cost a fortune to buy, but a “fill up” only costs $4.
Consumer sentiment is strongly in support of clean tech, says Laurie Yoler and cited Palo Alto where consumers were offered “green” electricity for a 15% premium. So far, the sign up rate is 60%. Of course, Palo Alto is hardly representative of the rest of the world, but what starts in Silicon Valley seldom stays in Silicon Valley.
The credit crunch is impacting investment activity especially for capital intensive solar comanies. Startups with smaller capital demands will do better, says Yoler and points out there’s a vibrant market for companies focused on energy efficiency: especially virtualization software and clean tech construction companies looking for $10 million/ round.
Someone had the audacity to ask what we can learn from the Europeans who invested heavily in clean tech, especially solar, over a decade ago. I look forward to discussing this issue further with Nancy Pfund at a later date.
Steve Eichenlaub emphasized the importance of keeping the green buzz going and credits the Obama administration for talking about the environment, global warming, energy independence and green tech almost every day since he took office. What a difference a Bush-less fortnight makes!
Check back soon for more on the conference from the Green Czars from Sun, HP, SAP, Intel and IBM
