Thursday 5 March 2009

Clean Tech Forum & Angel Investors Conference

The Clean Technology Investor Forum was held in Brisbane on the 18^th February in conjunction with the Australian Association of Angel Investors annual conference.  Keynote speaker Susan Preston from the Californian Clean Energy Investment Fund provided an overview of the US clean technology sector from an investment perspective.  Notable points included:

      1. The current US Global Stimulus package contains $150B for Clean Energy investment over the next 10 years

       2. The US has set a target of 1 million plug-in hybrid cars by 2015

      3. The US has set a target of doubling usage of renewable energy in the next 3 years

      4. Global Clean Energy investments to date are three times the size of total US Clean Energy investment.

Ms Preston also made the point that government signals, through its policy incentives, are the key to driving clean energy change and investment.  She explained that the Obama Administration has been proactive in stimulating the sector in the US since taking office.  This has given US investors a renewed confidence in investing in clean energy.  

While Renewable Energy technologies are the most talked, about it is the already available energy efficient technologies that are providing a positive return on investment for both investors and customers.  

There is also a major investment push to commercialise more non-foodstock bio-mass to reduce the issues associated with limited global foodstocks being used for energy generation. 

The conference also explored angel investing in general, and included a master class on dealing with companies post investment in Australia . Long held myths were discussed. Some interesting facts raised were: 

1. The average angel investment is around $200,000. International guests reported similar amounts

2. A large proportion of early stage funding comes from people known to those seeking the funds

3. Most angel activity currently occurs outside groups, but there is evidence that groups may offer benefits for early stage investors

4. Around 50% of angel investments are written off, and most exits are trade sales.

5. In the US 77% of angel groups did not have a positive exit from at least one of their portfolio companies in 2008

6. The success rates are higher for investors where they invest in companies they personally understand.

There are several companies where significant dollar–for-dollar funds are available for co-investment with angels, making a huge difference to the early stage capital pool. 

Tax incentives, which some governments make available to investors in early stage companies, are also a powerful incentive. However, the community continues to await a replacement for the Commercial Ready program, since our high growth companies need support as much as ever to create new jobs during the current financial crisis.  

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