MappingtheCleanEnergyInnovationInvestmentEcosystem
Initialglobalscanofkeyplayersfinancingcleanenergyinnovation
June2017
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.
ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
ExecutiveSummary
Objectives
• Establishaninitialknowledgebaseoftheinvestmentecosystemforcleanenergy
innovation,beginningwiththreeInnovationChallenges(ICs):Off-GridAccessto
Electricity,SustainableBiofuels,andCleanEnergyMaterials
• Establishamethodologyfordevelopingprivatesectorengagementstrategiesin
thesethreeICs
Activities
• Identifyinvestors,businesses,incubators/accelerators,governmentinitiatives,labs,
universities,andindustryassociationsthatalignwiththespecificscopeofeachIC
• AnalyzeinvestmentflowsandkeytrendsineachICtosupportdevelopmentof
initialhypothesesregardingkeyparticipantstoengageandtypesofchallengesto
resolvetoattractandencourageinvestmentinemergingtechnologies
Key
Findings
• ThethreeICsvaryintechnologicalandbusinessmodelmaturity
– EachICecosystemhasauniquebalanceofprivateandpublicsectorparticipants
– InvestorengagementwillalignwithICmaturity(fromseedtogrowthcapital)
• EngagementstrategywillbeIC-specific,requiringclosealignmentwithtechnicalteams
NextSteps
• Furtherdevelopengagementstrategybyinterviewingkeyecosystemparticipants
• AlignwithICtechnicalteamstoidentifycriticalareasofinputforprivatesector
participants
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
1
KeyFindings
EachICtargetstechnologiesandbusinessmodelsatdifferentlevelsofmaturity,resultinginvaried
targetedecosystemparticipantsacrossICs
Off-GridAccess
SustainableBiofuels
CleanEnergyMaterials
Maturity
• SolarPVtechnologyisreadily
availableforoff-griduse;however,
adaptableappliancetechnologies
arecurrentlyatlowerTRLs
• Businessmodels,suchaspay-asyou-go,arerapidlymaturing
• Commerciallyavailablesecondgenerationbiofuelsexistandhave
beenusedbymajorcorporations
• Businessmodelsandpotential
supplychainstructuresarewellknown
• Innovationinthematerialdiscovery
anddevelopmentprocessisinearly
stages ofdevelopmentwithlimited
privatesectoradoption,butis
gainingmomentum
• Initialbusinessmodelshavebeen
developed,butarenotyetproven
Target
Ecosystem
• Startupsdevelopingoff-grid
businessmodels
• Incubatorsandinvestorssupporting
thestartups
• Publicsectorbanksandnonprofits
providinggrantfinancingfor
electrificationefforts
• Corporatesinenergyequipment
supplyandfinancialfirmswhomay
assistincredithistorydevelopment
• Corporatesinaviation,shipping,
equipmentmanufacturingand
fueling
• Multinationalandindustry
organizationsinaviationand
shipping
• Investorsactiveinbiofuels
• Startupsdevelopingadvanced
biofuelsfrominnovativefeedstocks
• Universitiesandlabsthatareleading
materialdiscoveryinnovationand
theapplication ofrobotics
• Startupsthatareapplyingmaterial
discoveryinnovation
• Investorsfinancingthestartups
• Corporationsthatareimplementing
materialdiscoveryandroboticsassistedmaterialdevelopment
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
2
Snapshot– Off-GridAccesstoElectricity
ChallengeDefinitionandScope
PrivateSectorChallenges
• Manufacture,financing,delivery,andprovisionof
servicesforstandalonerenewablepowergeneration
systems,withafocusuponisolatedruralhouseholds
andcommunities
• Excludespowergenerationover100kw
• PowergenerationtypeprimarilysolarPV,butalso
includeswind,tidal,storageandotherformsofoffgridgeneration
A. Creditriskandgeographicunfamiliarityconcernslimit
early-stageprivateinvestment
B. Geographicfragmentationofoff-gridmarketrequires
geographic,technological,andculturallyspecific
solutions,whichinturnpresentissuesindeveloping
scalablebusinessmodels
C. Applianceinnovationisinearlierstagesthanenergy
accessinnovation
InvestmentFlows
InitialEngagementHypotheses
USDMM
Deals
$200
$100
$0
2014
Grant 1
SeriesB
2015
Seed
GrowthEquity
2016
SeriesA
TotalDeals
30
20
10
0
• ChallengeA:Shareinformationongeopolitical/
macroeconomicenvironmentsandgeography-specificbest
practiceswithprivatesectorbusinessesandinvestorsto
de-riskperceptionofearly-stageinvestment.
• ChallengeB:Facilitateinteractionacrossregional
participantsandtechnologyproviderstoidentifypotential
synergiesandopportunitiesfordevelopingscale
• ChallengeC:Evaluateopportunitiestobuildappliancefocusedbusinessmodelsoffofenergyaccessprogress
Source:CTGi3database,CTGresearchandanalysis
1Includes grants made to for-profit entities
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
3
InvestmentFlows– Off-GridAccesstoElectricity
2014-2016InvestmentOverview
Observations
DealCountbyStage
Deals
40
20
0
2014
Grant
Deals
Seed
2015
SeriesA
SeriesB
2016
GrowthEquity
DealParticipationbyInvestorType
50
0
2014
VentureCapital
PrivateEquity
2015
Corporation
Other 1
2016
PublicSector
• Totaldealcounthasincreasedsince2014,representing
bothincreasedpublicandprivateparticipation
• Publicsectorgrantfundinghasincreasedsince2014,
representinganincreaseingeneralawarenessandpublic
sectoractivity,drivenbyfactorssuchastheParis
Agreementin2015
• Growthequityinvestmentinparticularhasbeenbuoyed
bymajorprivateinvestmentsin2016,inLumos Global
($90MM)andOffGridElectric($58MM),indicating
privatesectordemandforestablishedoff-gridcompanies
• However,early-stagefundinghasbeenscarce,asthe
majorityofinvestorsareinNorthAmericaandEurope.As
such,manyareunfamiliarwithinvestmentinsubSaharanAfricaandIndiaandthepathtolarge-scale
businessmodelsisuncleartoinvestorsconcernedabout
geographicfragmentation,resultinginahigher
perceptionsofrisk
Source:CTGi3database,CTGanalysis
1Includes angel investors, individuals, crowdfunding, andother sources
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
4
PrivateSectorEngagement– Off-GridAccessto
Electricity(1 of2)
• Early-stageprivatesectorinvestmentinoff-gridstartupsislimited,especiallyinseedroundfunding.
– Thoughinvestorsareawareofthevastpotentialmarket,unfamiliaritywithdevelopingworldinvestment
ecosystem(s)increasesriskperceptions.Country-levelriskbriefsfrompublicorganizationswouldhelpreducerisk
perceptions
– Integrationofadvancementsincreditevaluation,potentiallyfromfintech,bigdataand/orIoT,mayunlock
furtherearly-stageprivateinvestment.Energypaymentpatternscanalsohelpestablishcredithistoryto
consumerfinanciers
• Publicsectorgrantsandcharitablefundshavebeencriticalinenablingearlyoff-gridsuccess,but
morediversemechanismsarerequiredforearly-stagestartupfunding.
– Growingstartups suchasd.Light andBBOXX,amongothers,havereceivedearlyfundingfrompublicsectorgrant
programssuchasUSAIDScalingOff-GridEnergyGrandChallengeEnterpriseandtheAfricaEnterpriseChallenge
Fund(AECF).
– Off-gridstartups havearguedthatequitycapitalispreferabletodebt(whetherfrompublicsectorsuchasAfDB
FacilityforEnergyInclusionorprivatesector),suggestingthatdebtfinancingistooexpensiveinitsexistingform
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
5
PrivateSectorEngagement– Off-GridAccessto
Electricity(2of2)
• Acceleratorsareplayinganimportantroleinthedevelopmentofoff-gridstartups
– InnoEnergy,ClimateKIC,andPowerHouse have20off-gridcompaniesintheirportfolios,primarilyfocusedonthe
technologyportionsofthevaluechain
– SelcoIncubationCentre,locatedinBangalore,supportslocalentrepreneursaddressingelectricityaccess
challenges
• Incubationsupportforlocalentrepreneursdevelopingsales/customersolutionsbusinessmodelsratherthan
off-gridtechnologypackages
• SupportedbySmallScaleInfrastructureDevelopmentFund,withinvestorsincludingsocially-focused
organizationsE+Co,TheLemelson Foundation,andTheGoodEnergiesFoundation
• Innovationinenergy-efficientappliancescompatiblewithrenewablegenerationisinveryearlystages
– Customerrelationships,brandreputation,andchannelaccessfromenergyaccessprovidersmayprovide
opportunitiestoshortcutbusinessmodeldevelopmentforapplianceproviders
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
6
Snapshot– SustainableBiofuels
ChallengeDefinitionandScope
PrivateSectorChallenges
• Todevelopwaystoproduce,atscale,widelyaffordable, A. Whiletheaviationindustryhasbeenactiveinpiloting
andadoptingbiofuels,shipping/marinehasmadeless
advancedbiofuelsfortransportationandindustrial
progress
applications
B. Feedstockscalabilitypotentialisuncertain
• Excludesfirstgeneration(food-based)solutions
C. Investmentinearly-stage(seed-SeriesB)startupshas
• Transportationapplicationsfocusonaviationand
beenlow,suggestingshrinkingfuturepipelineofbiofuels
shippingindustries,ratherthanpersonalvehicles
companies
InvestmentFlows
InitialEngagementHypotheses
USDMM
Deals
$1,000
60
40
$500
20
$0
2014
Grant
SeriesB
1
2015
Seed
GrowthEquity
Source:CTGi3database,CTGresearchandanalysis
1Includes grants made to for-profit entities
2016
0
SeriesA
TotalDeals
• ChallengeA:Engagewithbiofuelsusersthrough
industry-specificmultinationalorganizationssuchasICAO
andSAFUG(aviation)andIMOandtheSustainable
ShippingInitiative(shipping)totargetspecificneedsper
usecase
• ChallengeB:InconjunctionwithAdvancedMaterialsIC,
investigatepotentialformaterialsdiscoveryplatformsto
acceleratebiofueladoptionthroughfeedstockinnovation
• ChallengeC:Facilitatediscussionswithinvestorsto
identifyspecificconcernsandpotentialmitigation/
supportstructureoptions
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
7
InvestmentFlows– SustainableBiofuels
2014-2016InvestmentOverview
Observations
DealCountbyStage
Deals
50
25
0
2014
Grant
Seed
Deals
2015
SeriesA
SeriesB
2016
GrowthEquity
DealParticipationbyInvestorType
100
0
2014
VentureCapital
PrivateEquity
2015
Corporation
Other 1
2016
PublicSector
• Totaldealcountshavedroppedoffsignificantlysince
2014,withcorporateandpublicsectorinvestment
accountingformuchofthedecline
• Venturecapitalparticipationhasremainedsteady,butis
largelyparticipatingingrowthequityroundsratherthan
earlierstages
• Earlierstage(seed,SeriesA,andSeriesB)financinghas
beenscarce,withonly23totaldealsover2014-16in
comparisonto50growthequityfinancings
– Thedeclineinearlystagefinancingsindicatesa
capacityissueforfurtherinvestigation
• GinkgoBioworks andZymergen arestrainimprovement/
discoveryplatformsleveragingadvancedcomputational
techniquesandhaveraisedover$300MMincombined
financing,indicatingstronginterestfrominvestorsinthe
potentialofsuchtechnologiesandbusinessmodels
Source:CTGi3database,CTGanalysis
1Includes angel investors, individuals, crowdfunding, andother sources
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
8
PrivateSectorEngagement– SustainableBiofuels (1of2)
• Corporatesacrossthevaluechainfromengines/turbinestofuelendusershavebeenactive
participantsacrosstheinnovationspectrum,fromtechnologydevelopmentpartnershipsto
investmentinstartupstobiofueldemonstrationandofftakeagreements.
• Theaviationindustryprovidescasestudiesforbiofueladoptionanddevelopment:
– The Sustainable Aviation Fuel UsersGroup(SAFUG) includes 28 airlines and major manufacturers Boeing,
and Embraer
Airbus,
– SAFUG members United Airlines and CathayPacific have invested in biofuels startups and others such as
KLM, Lufthansa,
ScandinavianAirlines,
Southwest,
andJetBluehavesignedofftakeagreements
– Offtakeagreements includeparticipationfrom majorfuelsuppliers suchas Neste,AirBP,andTotal;startups
suchas FulcrumBioenergy, AltAir Fuels, Amyris,Gevo, and SkyNRG; and aviation servicescompany World
Fuel Services
– Scalability of feedstocksforairlineusespecificationsremainsa key concern
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
9
PrivateSectorEngagement– SustainableBiofuels (2of2)
• Thoughtheshippingindustryhasbeenlessactive,notabledevelopmentsinclude:
SustainableShippingInitiative, whichi
– Formationof the
ncludes shipowner/operators Maersk, U-Ming
IMC, Cargill,
and Bunge; engine manufacturer
and NGOs
Forum
for the Future
World Marine,
Wartsila;
and
Wildlife Foundation
GoodFuels
a
2-year development
– Royal Boskalis
Westminster, Wartsila,
and
partnering for
program for drop- in biofuels
running
methanol,
operator Waterfront Shipping Co.
– MAN B&W
delivering
its dual-fuel
tankers, capable
of
on
to
– Shippinghas focused
onmethanol, while
aviationhas focused
onfuels basedonjatropha or waste vegetable oil
• InvestorsofnoteincludeNorthBridgeVenturePartners,DataCollective,DraperFisherJurvetson,and
Braemar EnergyVentures,whohaveallparticipatedin3ormoreventurefinancingsover2014-16
• EuropeanacceleratorsInnoenergy andClimateKIChaveacombined14biofuelscompaniesintheir
portfolios;ElementalExcelerator istheonlyNorthAmericanprogramwithmultiplebiofuelscompanies
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
10
Snapshot– CleanEnergyMaterials
ChallengeDefinitionandScope
PrivateSectorChallenges
A. Innovationinmaterialssynthesisandtestinghasshown
• Toaccelerateby10xtheinnovationprocessforthe
limitedpublicsectorpilotingandhasnotyetshown
exploration,discovery,anduseofnew,highprivatesectoradoption
performance,low-costcleanenergymaterials.
• Directedtowardsdevelopingafullyintegrated,end-to- B. Uncertaintyaboutwhetherdevelopmentofpublic
endplatformthatwillacceleratematerialsdiscovery
sectoropendatainitiativeswilloverlap/competewith
alongthewholeprocessfromlowtohightechnology
currentprivatesectorbusinessmodels
readinesslevels(TRLs).
InvestmentFlows
InitialEngagementHypotheses
Deals
USDMM
$300
$200
$100
$0
2014
Grant 1
SeriesB
2015
Seed
GrowthEquity
2016
4
3
2
1
0
• ChallengeA:Exploreopportunitiesforpublicsector
effortstocomplementprivatesectorinterestsand
limitations,particularlywiththepotentialuseofrobotics
formaterialsdevelopmentandtesting
• ChallengeB:Engagestartupsandinvestorsinmaterials
discoverytodevelopaclearunderstandingofbusiness
andrevenuemodels,particularlywithregardtolegal/IP
SeriesA
TotalDeals
Source:CTGi3database,CTGresearchandanalysis
1Includes grants made to for-profit entities
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
11
InvestmentFlows– CleanEnergyMaterials
2014-2016InvestmentOverview
Observations
DealCountbyStage
Deals
5
0
2014
Grant
Deals
20
0
Seed
2015
SeriesA
2016
SeriesB
GrowthEquity
DealParticipationbyInvestorType
2014
VentureCapital
Accelerator/Incubator
2015
2016
PrivateEquity
Other 1
Source:CTGi3database,CTGanalysis
1Includes angel investors, individuals, crowdfunding, andother sources
• Financingofprivatesectorstartupsinadvancedmaterial
discoverytechniqueshasbeenlimitedincount,butlarge
SeriesBandgrowthequityfinancingsin2016suggest
rapidmomentumgains
• Fourinvestorshaveparticipatedinfinancingofmultiple
companiesinthissector,withbiologycompanies
Zymergen andGinkgoBioworks featuringprominently
– AMECloudVentures
– DataCollective
– InnovationEndeavors
– PreludeVentures
• Whileinvestorshaveshowninterestinmaterialdiscovery
throughadvancedcomputation,synthesisandtesting
companieswithoutdiscoverycapabilityhavenotgained
tractionwithinvestors
– Withuncertaintyregardingbusinessandrevenue
models,thismaybeakeyareaforpublicsector
participation
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
12
PrivateSectorEngagement– CleanEnergyMaterials
(1 of2)
• Organizationsandinitiativesapplyingadvancedcomputationaltechniquestomaterialsdiscovery
include:
– PublicsectorinitiativessuchastheMaterialsGenomeInitiative,NovelMaterialsDiscovery(NOMAD),theEnergy
MaterialsNetwork
– Startupcompaniesinadvancedmaterials/chemicals(CitrineInformatics,Exabyte.io)andbiology(Zymergen and
GinkgoBioworks)
– CorporatessuchasBASF,DowChemical,andSchrodinger
– NonprofitlaboratoriessuchasBattelleMemorialInstitute,SouthwestResearchInstitute,ToyotaResearch
Institute,andSRIInternational
– AcademicinstitutionssuchastheUniversityofLiverpoolandUniversityCollegeLondon
• DowChemicalhasalsodevelopedautomatedtechniquesleveragingroboticsforhigh-throughput
synthesisinindustrialcoatings
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
13
PrivateSectorEngagement– CleanEnergyMaterials
(2 of2)
• MaterialsdiscoveryandtestingcompaniesfocusingonbatterychemistriessuchasWildcatDiscovery
Technologies,PolarisBatteryLabs,andIlika havealsoreceivedventurefinancing
– ThebusinessmodelsandapproachtoIPthesecompaniesusemayprovideexamplesforprivatesector
development
• InvestorsAMECloudVentures,InnovationEndeavors,andPreludeVenturesstandoutfortheir
financingofbothCitrineInformaticsandZymergen;DataCollectiveVentureCapitalhasfinanced
Zymergen andGinkgoBioworks
• Pharmaceuticalsareapotentialsourceofsynergies,asanumberofstartupsareapplyingmachine
learningfordrugdiscovery
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
14
SummaryofInitialEngagementHypotheses
Off-GridAccess
Participants
Topics
• Facilitateinteractionacross
regionalparticipantsand
technologyproviderstoidentify
potentialsynergiesand
opportunitiesfordeveloping
scale
SustainableBiofuels
• Engagewithbiofuelsusers
throughindustryorganizations
suchasIMOandICAOtotarget
specificneedsperusecase
• Facilitatediscussionswith
investorstoidentifyspecific
concernsandpotential
mitigation/supportstructure
options
• Shareinformation ongeopolitical/ • InconjunctionwithAdvanced
macroeconomicenvironments,
MaterialsIC,investigatepotential
andgeography-specificbest
formaterialsdiscoveryplatforms
practiceswithprivatesector
toacceleratebiofueladoption
businessesandinvestorstode-risk
throughfeedstockinnovation
perceptionofearly-stage
investment.
• Evaluateopportunitiestobuild
appliance-focusedbusiness
modelsoffofenergyaccess
progress
CleanEnergyMaterials
• Engagestartupsandinvestorsin
materialsdiscoverytodevelopa
clearunderstandingofbusiness
andrevenuemodels,particularly
withregardtolegal/IP
• Exploreopportunitiesforpublic
sectoreffortstocomplement
privatesectorinterestsand
limitations,particularlywiththe
potentialuseofroboticsfor
materialsdevelopmentandtesting
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
15
NextSteps
• SharefindingswithICtechnicalgroupsandcollectfeedback
• Furtherdevelopprivatesectorengagementhypothesesbyinterviewingspecificallyselected
ecosystemparticipantsforeachIC
– Off-GridAccesstoElectricity
• Interviewventurefundswhohavebackedearly-stagestartupsabouttheirinvestmentevaluationmethodsin
off-gridaccesstodeterminekeyaspectsofstartupswhohavebeensuccessfulinraisingfunds
• Interviewstartupswhoseekawiderrangeoffinancingoptionsandstructures,andprocurestartup
perspectivesonpotentialforappliancesadaptedtooff-gridusecases
– SustainableBiofuels
• Assessinvestorperspectiveondeclineinearly-stagefinancingsandpastchallengesingrowingcompanies
• IdentifysynergieswithindustryassociationsforbiofuelsandhowMIresourcescanbebestleveraged
– CleanEnergyMaterials
• InterviewstartupstodevelopunderstandingofrevenueandbusinessmodelsandhandlingofIP
• Establishinvestorperspectiveonkeyuncertaintiesandareasforpublicsectorinvolvementinmaterials
synthesisandtesting
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
16
GLOSSARY
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
17
EcosystemParticipantDefinitions
• Fund:Privatesectorvehiclesinvestingdirectlyintostartupsand/orstartupprojectsviaequity,
venturedebt,orprojectfinancingmechanisms.
• Corporate(investor):Publiclytraded(orotherwisematureandestablished)companiesinvesting
directlyintostartupsand/orstartupprojects.
• Corporate(non-investor):Publiclytradedcompaniesengagingwithinnovationwithoutinvesting
(jointdevelopment,technologypartner,licensee,etc).Excludescorporate-owned
incubators/accelerators.
• Government:State-ownedentitiesenablinginnovation,includinginvestment.Caninclude
investmentarms,researchorganizations/labs,one-offinitiatives.
• Incubator/Accelerator:Organizationsprovidingstartupsdevelopmentalandoperationalsupport.
Canincludefinancialsupportandinvestment.Includesstand-alone,corporate,andgovernmentsupportedincubatorsandaccelerators.
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
18
StageDefinitions
• Grant:Non-repayablefunds,consistingofcashandpotentiallyothertypesofsupport,forspecificuse
purposes.
• Seed:Thefirststageofventurecapitalfinancing,oftenfortheearlydevelopmentofanewproduct
orservice.Commonlyusedforproductdevelopment,marketresearch,building amanagementteam
anddevelopingabusinessplan.
• SeriesA:Thefirstroundoffinancing,oftenwhenexternalinvestorsaregivencompanyownershipfor
thefirsttime.Commonlyraisedforgainingproducttraction.
• SeriesB:Secondroundthefinancing,commonlyraisedforscalingproductwithexistingtraction.
• GrowthEquity:SeriesC,D,etc.,raisedbygrowingcompaniesforongoingscalingofthebusiness
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
19
RelationshipDefinitions
• ChannelPartner:Apartnershipwhereonecompanyprovidesanotherwith asalesavenueinwhich
tosellitsproduct.
• Customer:Customersarethosethatbuythecompany’sendproduct,aswellasthosecompanies
whoseproductsitbuys(i.e.suppliers).
• DevelopmentPartner:When 2ormorecompaniesworktogethertodevelop aproductorproject,
butnotintegratetheirtechnologiestogether.Examplesmightincludeacompanyallowinganotherto
useitsfacilitiestopilot/testitsproductor autilityputtingoutanRFPtovendorsfortheirsmart
meterdeployment.Itmightincludeamanufacturingpartnershipswherecompaniesmaybuilda
factorytogetherorexpandintoanewregion.Itmayincludecompaniesworkingonaparticular
projecttogether.
• JointVenture:Two ormorecompaniessettingupandjointlyinvestingin anewcompanysetupfor a
specificpurposeinordertoleveragetheirdifferentskillsets.
• Licensee:Thecustomer(licensee)insteadofoutrightbuyingthelicensersendproduct,paysthe
licenser afeetouseitstechnologyandIPinitsownproduct.
• ProjectDevelopment:Apartnershipwherebytwoormorecompaniesworktogethertobuild a
particularplanttogether.
• TechnologyPartner:When 2(ormore)companiesintegratetheirtechnologieswithoneanother
ThisanalysiswascommissionedbyNaturalResourcesCanada,andperformedbytheCleantech Group.ItdoesnotnecessarilyrepresenttheviewsoftheGovernmentofCanada.
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