OnGreen caps off successful launch of new site with high level, exclusive networking event

At OnGreen’s launch celebration last week in Hollywood, California, attendees heard from cleantech leaders from around the world and across the green spectrum. The event kicked off with a discussion titled “Chinese Capital for Cleantech Start-Ups,” which included panelists Peggy Liu, Founder of Joint US-China Collaboration on Clean Energy (JUCCCE); Linda Lau, Founder of Global Law Group; Leon Chiu, President of Pioneer Materials, Inc.; and Dr. Peter Adriaens, Professor at the University of Michigan.

Moderator and OnGreen President Stan Holt noted that the Chinese investment climate is vibrant and that China is the most receptive it's ever been to international resources and collaboration, seeking expertise, training, technology, and policy feedback in its quest to go green. Peggy Liu focused on the fact that “the U.S. can capitalize on China's new green intent to create U.S. jobs and increase exports of products and services to China. But it needs to do so in a more methodical fashion, coordinating with local bridges such as JUCCCE, and acting collectively to appear more accessible to Chinese buyers.” Liu emphasized that partnering with China creates a win-win for all sides.

Panelists also advised that help is available from Chinese government entities for U.S. cleantech startups, particularly in the form of land for manufacturing and/or office facilities. This type of barter strategy is somewhat stale in the United States but very alive in China. In addition, U.S. cleantech startups must understand Chinese emphasis on guanxi, or the interpersonal dynamic in all business relationships. Generally, forming relationships with mayors or high-level business executives before a deal greatly improves that deal’s potential for success.

In relation to Chinese investors, panelists said that China is generally interested in start-ups where the technology has already been de-risked. Furthermore, Chinese state-owned investors are willing to take lower financial returns compared with U.S. venture capitalists who expect 60-70% returns. An alternative route to direct investment is through the U.S. governments EB-5 program, an increasingly popular way to get $500k-$1M from foreign investors looking for green cards for themselves or their children. Advantages include minimal expectations about business model or post-investment involvement compared with VC or angel investment. Disadvantages include turnaround time: it can take 9-18 months with bureaucratic hoops to jump through.

The second panel, moderated by Sean Arian, the Founder and President of Eos Consulting focused on how to access all avenues of cleantech funding. Panelists included David Anthony, Managing Partner of 21Ventures; Edward Elliott an Expert Advisor at the Office of Policy & External Affairs in the U.S. Patent and Trademark Office; Robyn Zander, Program Manager at Southern California Edison and Michael Simon the President of Transpower. The panelists first unpacked the chicken and an egg problem of investment, that if startups have no money, they may not be able to afford costs like a patent lawyer or travel costs to meet with global investors. One answer was to start small and local and “network, network network” as much as possible with potential investors who may have broader connections. One example given was Calstar, a great organization for transportation companies as well as TRIO out of UC San Diego.

Securing RFP investment money piqued the interest of several panelists and audience members. Panelists stressed that an entrepreneur must get to know the customer – “what is the entity and what are they trying to accomplish?” Speaking from his personal successful experience, Simon said that companies should always make sure to follow directions and respond in the exact specified format of the RFP. Lastly, panelists agreed that companies should “expect the unexpected and be prepared to deal with lots of variables" and be comfortable with the budgets organizations are willing to allocate towards RFP deals.

Guest speakers at the networking reception included Matt Petersen, President and CEO of Global Green USA and Peggy Liu. Petersen focused on how the debate on the safety of nuclear energy has been reignited by the radiation threat in Japan, a country where nuclear energy accounts for about 20 percent of electrical production. Petersen wrapped up by pointing out that the deals on OnGreen, if commercialized, could create viable solutions for countries like Japan. Liu spoke at length about the possibilities for collaboration between China and the United States to bring new cleantech innovations to market. In addition, she claimed that the American green movement would be more successful if it abandoned climate change as a central rhetorical argument and instead focused on job creation, national security, and innovation.

Hand-picked demo companies also had the opportunity to give a one-minute fast pitch to the audience. OnGreen listed companies included:

· ElioSolar
· Hodapen
· Home Town Farms
· Kinetic Traction Systems
· Proteus Environmental Technologies
· Santa Monica EV·

OnGreen CEO Nikhil Jain capped the night off by peeling the beta sticker off the OnGreen site while highlighting several key milestones that the company hit in just under one year. These included over 280 deals submitted online, a total of $1.9 billion of funding sought, over 30,000 patents listed, closing Series A investment, and the opening of an office in Shanghai. Future developments include the addition of an Opportunities section of the website, a partnership with the Hong Kong Trade Development Council and a satellite office being opened in India. With over 200 attendees at the invite-only event, OnGreen was proud to have brought together so many people from across the growing cleantech investment community.