Most of the planet has been engaged in discussions on how to reduce greenhouse gases (GHG). The 1992 UN Rio conference, also known as “Earth Summit” focused on GHG, which ultimately led to the Kyoto Protocol. Twenty years later, the 2012 UN Rio conference was held again (June 20-22, 2012). In addition to determining where… Continue Reading
Category Archives: Capital and Funding
Subscribe to Capital and Funding RSS FeedCan a New Political Consensus be Found to Keep a 75-Year Supply of Natural Gas from Dooming Renewable Energy?
Posted in Capital and Funding, Legislation, Natural Resources and Environment, TechnologyIn an April 12, 2012 article in the New York Times, Jad Mouwad wrote about the transformation in United States’ energy fortunes that is fundamentally changing much of what we thought we knew about domestic and international realities. After decades of viewing ourselves as energy depleted, he writes, the United States now finds itself cutting… Continue Reading
Energy Provisions in Budget Show President’s Priorities
Posted in Capital and Funding, Energy Conservation, Legislation, Tax and Tax StimulusOn February 13, 2012, President Obama sent Congress a $3.8 trillion budget proposal for the 2013 fiscal year, which begins October 1. The budget proposal contains a number of energy-related provisions, including the following: Tax Credit for Wind Facilities – The U.S. Tax Code currently provides a production tax credit (PTC) for wind facilities. The… Continue Reading
Valuing Your Greentech Business
Posted in Capital and Funding, EntrepreneursAs an attorney to entrepreneurs and investors of greentech startups, I am often asked the seemingly simple question of “what’s the value of my shares?” This is a simple question with, of course, no simple answer. There are a number of reasons why someone may want to know the value of their startup—in order to… Continue Reading
On Disappointment
Posted in Capital and Funding, Clean Energy, Events, Smart Grid, TechnologyVery early in the morning on November 17, 2011, long before the sun came up, the president of smart grid company GridMobility and I drove from San Jose to SFO for a first flight back to Seattle. The prior two days, the CleanTech Open had held its national business competition. The vehicle was thick with… Continue Reading
The Top Five Cleantech Stories of 2011, Part I
Posted in Capital and Funding, EntrepreneursThe end-of-year holidays are all about family gatherings, religious celebration, retail mania, and of course, lots and lots of calories! But they are also a time to pause and take stock of the year gone by—to reflect upon our successes and failures, and then “resolve” to improve ourselves in the year to come. As our… Continue Reading
Last Chance to Fix Up Your House and Get a Tax Break – Expiring Energy Tax Incentives for Individuals
Posted in Capital and Funding, Energy Conservation, LegislationA number of financial incentives offered by the federal government to encourage the development and adoption of clean energy technologies and practices are set to expire at the end of 2011. We discussed one of the expiring incentives, the Section 1603 cash grant program, in an earlier blog posting. See “Last Chance to Take Advantage… Continue Reading
Last Chance to Take Advantage of Cash Grants for Renewable Energy Projects
Posted in Capital and Funding, Legislation, Renewable EnergyThe Section 1603 cash grant program is coming to an end. If you have not already started construction on your renewable energy project, or you are not about ready to do so, then it is probably too late for you to take advantage of it. This blog posting is just a reminder that actual construction… Continue Reading
Section 1603 Cash Grants – Here Comes the IRS
Posted in Capital and Funding, Tax and Tax StimulusThe spectacular and very public collapse of Solyndra has left both opponents and proponents of the Obama administration’s renewable energy policy wondering about government oversight of energy projects funded with taxpayer dollars. Solyndra, of course, is the solar panel manufacturing company that filed for bankruptcy last month, leaving taxpayers on the hook for a $535… Continue Reading
Alternative Energy – Get Ready For Some Tough Years
Posted in Alternative Fuels, Capital and FundingFinancing of alternative energy projects will likely be challenging in coming years. Many of the government subsidies that have sustained those projects are going away. According to the White House Office of Management and Budget, alternative energy subsidies are expected to fall 77% by 2016 from a record high in 2010. The precipitous decline in… Continue Reading
Clean Tech Funding Becomes Battleground in Latest Congressional Budget Fight
Posted in Capital and Funding, Clean EnergyA Department of Energy clean tech initiative known as the Advanced Technology Vehicles Manufacturing (ATVM) program became the battleground earlier this week in the latest round of congressional budget fights. The dust-up started when the Federal Emergency Management Agency (FEMA) announced that its disaster relief fund would run out of money some time this week…. Continue Reading
GOVERNMENT SUPPORT OF ALTERNATIVE ENERGY – STAYING THE COURSE?
Posted in Capital and Funding, Renewable EnergyThe recent spectacular and very public failure of Solyndra has some observers questioning the current administration’s clean-energy stimulus program and, more generally, the wisdom of the government picking winners and losers of particular technologies and industries. For those who have not been following the news, Solyndra is a manufacturer of industrial solar panels that filed… Continue Reading
A Fundraising Idea
Posted in Capital and Funding, EntrepreneursHow can a startup legitimately incentivize someone to raise money is a frequent question for start-ups, including cleantech companies. The someone can be a founder, board member, advisor, employee, or other person. To put the question more specifically, what legal tools are available to implement a strategy of incenting startup fundraising which: (A) does not undeservedly… Continue Reading
Green Power Becomes Fashionable
Posted in Capital and Funding, Energy Conservation, Legislation, Renewable Energy, Sustainable BusinessSeveral weeks ago, a headline caught my eye: “Flagship Lord & Taylor to be 100% Wind-Powered.” I read the short article that followed and learned that Lord & Taylor’s flagship store on New York’s Fifth Avenue and another store will be powered by renewable energy after the company signed a two-year contract with Green Mountain… Continue Reading
New Federal Investment to Promote the Production of Drop-In Fuels
Posted in Alternative Fuels, Capital and FundingPresident Obama announced on March 16 that the U.S. Departments of Agriculture, Energy and Navy will invest up to $510 million over the next three years in a program to promote the production of biofuels that can be used to meet the country’s military and commercial transportation needs. Each of the government agencies will contribute… Continue Reading
Washington Start-ups Should “Swing for the Fences” in the Efficient Energy Sector
Posted in Capital and Funding, Entrepreneurs, TechnologyI was struck at a recent meeting with a “player” in the Cleantech financing space that all of the deals on which that firm is working involve companies located elsewhere than the State of Washington. Why should that be when Washington continues to rank as the #2 sustainable state in the U.S.? Part of the… Continue Reading
The Constellation, the Entrepreneur, and the Angel
Posted in Capital and Funding, EntrepreneursAmong the themes here at the GreenTech blog is, green entrepreneurs, know your financing options! Here is a quick map of those options, and a description of one approach to angel financing– “straight” debt in conjunction with an outright grant of equity– that results in a high degree of alignment between the entrepreneur and the angel…. Continue Reading
Funding Cuts for Clean Energy
Posted in Capital and Funding, Legislation, TechnologyPressure to trim the U.S. budget deficit means cuts in funds available to the Department of Energy (DOE) to support the development of technologies that can help us achieve our energy efficiency and renewable energy goals and to encourage use of such technologies. The U.S. House of Representatives Appropriations Committee released information last week on… Continue Reading
Financing Your Greentech Startup: Typical Terms in the “Seed” Round
Posted in Capital and Funding, EntrepreneursIn my last post, I discussed basic guidelines to keep in mind before embarking in your first, “seed” round of financing. This is typically the first round of financing sourced from family and friends, and is often the first place you’ll look when starting your new greentech company. There are typically two ways of seed… Continue Reading
Green Bank – Additional Funding Source on the Way?
Posted in Alternative Fuels, Capital and Funding, LegislationA proposal to create a “green bank” that would focus on funding clean energy technologies has resurfaced. The proposal was the subject of a U.S. Senate Energy Committee hearing this week. The chairman of the committee said he hoped to send the proposal to the full Senate for its consideration in the next few weeks…. Continue Reading
Financing Your Greentech Startup: Tips for Raising Capital in the “Seed” Round
Posted in Capital and Funding, Entrepreneurs, Sustainable BusinessAfter you’ve formed a company and poured your meager life savings into your new Greentech startup, you probably will have a need to raise capital. Oftentimes, the first place startups look for initial capital outside of their own piggy banks is from their friends and family. This “friends and family” round of financing is often… Continue Reading
The Bank Test
Posted in Capital and Funding, EntrepreneursWhether your greentech business is a pre-revenue start-up or a middle market-sized company, regardless of segment from smart grid to alternative fuels to clean technology generally, do you have at least monthly discussions with two or more business or commercial bankers? If you are not, you may well be missing conversations you should be having,… Continue Reading
FEDERAL BUDGET BATTLE THREATENS ENERGY AND ENVIRONMENTAL PROGRAMS
Posted in Capital and Funding, RegulatoryThe Republican-controlled House passed a budget resolution a few day ago that would have a significant impact on U.S. energy and environmental policies and programs if enacted into law. The budget resolution, H.R. 1, makes large cuts to federal funding for programs administered through the U.S. Environmental Protection Agency and the U.S. Department of Energy…. Continue Reading
Mechanics of the Investor Pitch: Part II
Posted in Capital and Funding, EntrepreneursAs introduced in my prior blog post, below is an outline of my suggested mechanics for an investor pitch: PHASE I: This is the teaser. Treat this part of the presentation as a customer pitch. You want potential investors to get excited about your product or service. o Introduction: Tell them your name, your company’s… Continue Reading