E-Energy: exploring the future of energy in Germany

Friday, March 26th, 2010

Although having met the Kyoto protocol quota in 2008, Germany continues to make efforts for a cleaner environment. Offshore wind turbine parks are the rising stars on sea and German multinationals such as Siemens, Deutsche Bank and E.ON have joined forces to build solar fields in the Sahara desert.

However, nowadays, governments and multinationals are not the only actors anymore: there is an overall growing demand for clean technology solutions. Households and small companies are starting to produce their own electricity, generating energy with mini power plants or solar panels. The “electricity era” est arrivé.

E-Energy is one of Germany’s approaches for a society where all Germans can actively contribute to the energy supply system. In accordance with words such as E-Commerce or E-Government, the notion refers to ICT on the one hand and electricity on the other. The project demonstrates “how the immense potential for optimization presented by information and communication technologies (ICT) can best be harnessed to enhance the efficiency and environmental compatibility of the power supply and to ensure supply security.”

Originators of the E-Energy project are the German Federal Ministry of Economics and Technology (BMWi), whose Exist program will be presented on the EVM by Dr. Jens Mundhenke, the German Federal Environment Ministry (BMU) and several big German multinationals and energy producers such as Siemens, SAP, EnBW, RWE and Vattenfall. These players have brought together € 140 million for the setup of research studies on the individual production of green energy in six German model regions.

By making private households single energy providers, the four-year project aims to optimize the energy supply system from distribution to consumption and wants to rethink the current power grid. With smart electricity meters, individual households that produce energy are connected with the bigger, already established energy producers. In case the household’s energy production exceeds its own consumption, the excess electricity can be sold back to the energy providers at a profit. That way, individuals feed the power grid and become an active participant in the energy market.

Has your company developed a consumer-oriented clean technology solution? What clean tech projects have already been originated in your country? Feel free to leave a comment!

On life science venture capital funding

Thursday, March 25th, 2010

PricewaterhouseCoopers released a 2009 industry report on venture capital in the life science sector, which consists of the biotechnology and medical device and equipment industries.

Last year, the life science sector received most of the fundraising, namely 34% of all invested money. The biotechnology industry raised $ 1 billion in 108 deals; 87 medical device deals totalled $ 719 million. Even though the sector outpaces funding in all other industries, one should keep in mind that 2009 was the year with the lowest investment level since 1997.

Venture capitalists see opportunities for further growth within the sector, and the investment level is expected to increase in 2010. Tracy Lefteroff, global VC managing partner at PricewaterhouseCoopers, explains: “As the worldwide population ages and more people enter their years of greatest healthcare need, demand for new pharmaceuticals, diagnostics, and medical devices has the potential to go higher than we’ve ever seen.”

An increased amount of deal-making is expected in early-stage life science companies, as their need for venture capital is bigger, and they do not have an exit strategy yet. “Later-stage companies are finding other ways to generate cash, such as partnerships and licensing agreements with larger companies looking to expand their product pipelines.”, so Lefteroff.

The power of the battery business

Friday, March 19th, 2010

In our previous blog entry, we have pointed out that the clean technology market is getting bigger and the investment industry is closely watching innovations in the energy storage and efficiency sector. In a BusinessWeek article, Michael Butler, chairman and CEO of Cascadia Capital, a US investment firm, forms his view on the future of the battery business.

Driven by new technologies and innovation, the storage battery market is expected to grow worldwide from $36 billion in revenues today to more than $50 billion by 2015. Thereby, Butler alludes to the overall rising demand for clean technologies and the increasing need for cutting-edge batteries and energy storage innovations. Without them, “we run the risk of remaining stuck in the petroleum era”, which he regards a dangerous place when aspiring long-term prosperity.

According to Butler, the increasing need of clean technologies is generated by the growing demand for hybrid car batteries (for hybrid vehicles), ultracapacitors and renewable energy, such as solar and wind power. The private sector and also governments are starting to see the industry’s opportunities and have developed research projects and funding programs in order to stimulate innovation in the green energy sector.

Despite government and private sector efforts, which Butler considers essential for the battery business’ future, he claims that we have not been able to fully grasp the array of possibilities of the energy storage market yet: “We also need to look beyond batteries, to a combination of available and efficient next-generation energy storage technologies that can help us reach our commercial and environmental goals.” Only by constant improvement of battery performance, continuous innovation in ultracapacitors and experimental research on battery technologies conducted by universities worldwide, the market’s full potential can be discovered.

KPMG survey confirms positive turn for venture capital in 2010

Thursday, March 18th, 2010

In Looking forward: Venture Capital in 2010, we have briefly outlined the results of a NVCA predictions survey on venture capital in 2010. The study concluded that venture capitalists are cautiously optimistic on venture capital this year. A recent predictions survey of KPMG, a global audit, tax and advisory firm, now confirms the outcomes of the NVCA study.

The respondents of KPMG survey expect that the venture capital industry will take a positive turn this year compared to last year. 67% of the polled venture capitalists, investors, entrepreneurs and bankers believe a rebound in the investment level will occur in the next couple of months.

The clean technology sector is expected to be the investment industry’s main focus. More than three-fourths (77 %) of the respondents forecast that venture capital in green technology will resurge in 2010 in comparison with 2009. More specifically, 38% of those polled say that the clean tech sector’s sub segment energy storage and efficiency will attract most funding this year.

An increased government’s emphasis on stimulus funding and the development of federal support initiatives worldwide, which create an improved economic climate and a more dynamic investment environment, are considered the reasons for the investment focus on clean technologies and innovations.

To read the full article click on this link: http://www.vcaonline.com/news/news.asp?ID=2010030421

Lessons in European entrepreneurship

Thursday, March 11th, 2010

Almost a year ago, Stefano Bernardi, a junior venture capitalist and entrepreneurship aficionado, has started up thestartup.eu. On this blog, which tackles topics on the European start-up scene, he has recently discussed a European entrepreneurship and innovation seminar held at Stanford University.

During eight classes, European hi-tech tycoons have shared their insights on technologies, innovation, venture finance, entrepreneurship and research, thereby focussing on regional differences in Europe.

The sessions took place this winter but have afterwards been put online as video presentations. Interested in learning more about European entrepreneurship? Visit http://www.thestartup.eu/2010/02/european-entrepreneurship-stanford and http://www.europeanentrepreneursatstanford.com/.

EVM @ Innovact, the European forum for innovation

Friday, March 5th, 2010

This week, on the 2nd and 3rd of March, about a thousand innovation enthusiasts gathered in the sparkling city of champagne, Reims (France) to attend Innovact, a European forum for young and innovative enterprises organised by the Chamber of Commerce and Industry of Reims and Épernay.

A delegation of the Continua team travelled to France and saw innovation in all its aspects: young enterprises, incubators, universities, delegations, (governmental) associations, research organisations, consultancies and investment firms coming from 20 European countries. During the two forum days, we all have intensively networked, discussed products, projects, problems and solutions, took part in workshops on innovation, technologies and entrepreneurship and listened to keynote speeches on strategies and other industry-specific issues.

As the Innovact forum and the European Venture Market are striving for the same goals, namely to promote European innovation and entrepreneurship and to improve communication and networking between entrepreneurs and investors, we have engaged in a long-lasting partnership. With both the Innovact forum and the EVM, we are eager to create new business opportunities, while aiming for a more competitive and dynamic economy in Europe!

We have met a great deal of fellow innovation addicts and look forward to being in touch with them in the future. Innovact team: merci beaucoup for organising this outstanding event!