1、The CleanTech Market OpportunityConfidential Element Ventures-Highlights$250+million-capital under managementFocused exclusively on CleanTechInstitutional Limited Partner baseExperienced General Partners with deep domain expertiseSuccessfully managed$375 million in four prior CleanTech fundsAdvent E
2、nergy I,Advent Energy II,EnerTech I,EnerTech IIStrong financial performance72%gross IRR since 1995 in CleanTech 3.5x cash-on-cash return on realized investmentsProven strategy Invest where resource constraints are economically importantFocus on market-driven solutions with compelling value propositi
3、onsExceptional reach and world-class investment infrastructureUnique network for technical expertise and portfolio company supportWhat is CleanTech?CleanTech:Resource Management through Resource LifecycleVariety of Resources:Affects most Industries:Sourcing&Delivery Management&Optimization Disposal&
4、ReuseResource Lifecycle Commodities Materials Chemicals Water Power Fuels Air Emissions Utilities Chemicals Electronics Agriculture Consumer Services Industrial Transportation ManufacturingEnviroTech to CleanTechRegulatory Driven DecisionsCompliance-based PurchasingReactive(“end of pipe”)Chemical Sc
5、ienceTraditional EngineeringSlow Growth Markets“Save the World”Economic DecisionsProductivity-based PurchasingProactive(“clean fuels”)Material ScienceCollaborative EngineeringRapid Growth Markets“Entrepreneurial”MentalityCleanTech(Late 1990s Today)EnviroTech(1980 Early 1990s)CleanTech Market Overvie
6、wCleanTech products&services account for$150 billion globally with 5 10 year growth rates projected at 35%4Sources:1.http:/ typical eight inch silicon wafer requires 2,800-3,200 gallons of“high purity”water to manufacture.PPRC.3.US Department of Commerce;Manufacturing in America,January 2004.4.Clean
7、Tech Venture Network,CleanTech Achieving Competitive Venture Returns”October,2004.Transportation and Logistics Material Sourcing and Replacing Resource Optimization Material Handling Enabling Technologies Recovery and Recycling Environmental ComplianceManufacturing and Industrial Fuel Recovery Power
8、 Generation Energy Storage Energy Infrastructure Energy Efficiency Alternative Energy Advanced/Alternative Fuels Energy and Power Water Purification Water Filtration Desalinization Wastewater Treatment Water Management Air Quality Emissions abatement Air and Water CleanTech Market DriversResource co
9、nstraintsEnergy supply and demand imbalanceShortages of clean air,clean water,and clean powerAging power and water delivery infrastructureGlobal competition Increasing focus on resource efficiency and cost of productionCorporate responsibility for product“lifecycle management”Tightening environmenta
10、l regulationAcceleration of global concern and government mandatesPublic awareness and shareholder influence Technological advancesAbility to apply advances in other fields to resource constraint problemsBiotech,sensing,communications,IT,advanced materials,and power electronics Historical Commodity
11、PricesSource:FactSet Research Systems;Bloomberg.Attractive Investment OpportunityCleanTech has emerged as a high-potential investment spaceAccelerating rate of new CleanTech business formationMore seasoned entrepreneurial poolLeveraging technology advances across multiple fieldsCurrently undercapita
12、lized by institutional venture capitalReasonable valuations(but changing)Less competition(but changing)Poised for aggressive growth over the next decadeFueled by strong economic,regulatory,and technology driversImproving capital marketsMore than$4 billion invested in upwards of 500 CleanTech venture
13、 deals since 20021Over the last two decades the number of exits and the acquisition multiples have increasedSource:1.Vortex Energy LLC;“CleanTech Venture Investing:Patterns and Performance;”March 2005.Environmental Tech vs.CleanTechSource:Vortex Energy LLCWAVEWAVEEnvironmental TechnologyCleanTechGro
14、wing CleanTech Exit Opportunities M&A activity has increased at a 95%CAGR over the last four years IPO activity has increased at a 73%CAGR over the last four yearsSources:Capital IQ,New Energy Finance.As of 12/31/2005.Emerging:Number of Nanotech&Cleantech Cos 2005726441101United StatesEuropeBiopharm
15、a:13Biopharma:1Med Devices:3Comm:4Electronics:8Electronics:10Info Services:1Semi:18Semi:1Software:4Software:4Products:1Products:1Services:1Mat/Chem:16Mat/Chem:8Agriculture:2Energy:3Energy:21Other:1Other:15NanoClean TechBiopharma:8Biopharma:4Med Devices:6Comm:1Electronics:4Electronics:7Semi:3Semi:1So
16、ftware:1Software:1Products:8Services:2Services:6Retail:1Mat/Chem:14Mat/Chem:15Agriculture:1Energy:1Energy:24Other:1Other:33NanoClean TechSource:Ernst&Young/Dow Jones VentureOne Emerging:Cumulative Capital in Nanotech&Cleantech 2005165 M$1182 M348 M$1173 MUnited StatesEuropeBiopharma:$276Biopharma:$7
17、8Med Device:$18Comm:$146Electronics:$107Electronics:$245Info Services:$5Semi:$320Software:$87Software:$86Products:$20Mat/Chem:$207Mat/Chem:$105Agriculture:$70Energy:$8Energy:$407Other:$6Other:$166NanoClean TechBiopharma:47Biopharma:9Med Device:13Electronics:16Electronics:46Semi:9Semi:3Software:0.1So
18、ftware:1Products:11Services:0.4Services:23Mat/Chem:79Mat/Chem:42Agriculture:1Energy:0.1Energy:135Other:0.2Other:80NanoClean Tech$197 M$415 MSource:Ernst&Young/Dow Jones VentureOne Generation Technology Costs,19802004500DollarsperMWh4001980030020010020041985199019952000Solar PVWindGeothermalSupercritical CoalCoal IGCCNuclearGas CCGTSource:Cambridge Energy Research Associates.40321-5Drivers:technology changes,fuel prices and interest rates
