Mgt Building A Green Business Osu Jan09
-
Upload
martintobias -
Category
Business
-
view
848 -
download
2
description
Transcript of Mgt Building A Green Business Osu Jan09
![Page 1: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/1.jpg)
Building a Green Business:Building a Green Business:Lessons and OpportunitiesLessons and Opportunities
Martin TobiasMartin Tobias
January 2009January 2009
![Page 2: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/2.jpg)
Tech nerd to Green and Tech nerd to Green and backback
![Page 3: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/3.jpg)
Martin TobiasMartin Tobias• In the beginningIn the beginning
– Medford HS ‘82, Mensa, the other thing.Medford HS ‘82, Mensa, the other thing.– OSU ‘86, ASOSU Treasurer, Lambda Chi Alpha, Bus/CSOSU ‘86, ASOSU Treasurer, Lambda Chi Alpha, Bus/CS
• Accenture, Information systems consultingAccenture, Information systems consulting– Senior Manager, ‘87-’91, Microsoft, Sullivan Payne, Coopervision Silco, RR Senior Manager, ‘87-’91, Microsoft, Sullivan Payne, Coopervision Silco, RR
DonnelleyDonnelley• Microsoft Corp., Software Microsoft Corp., Software
– Program Manager, ‘91-’97, 4 years in EuropeProgram Manager, ‘91-’97, 4 years in Europe• Loudeye Technologies, Inc., Digital Media servicesLoudeye Technologies, Inc., Digital Media services
– Founder, Chairman, CEO, ‘97-’00, lead investor, $0-$12M revenue.Founder, Chairman, CEO, ‘97-’00, lead investor, $0-$12M revenue.– Grew from 1 to >400 people, senior mgt, board, 5 acquisitions.Grew from 1 to >400 people, senior mgt, board, 5 acquisitions.
• Ignition Partners, Venture CapitalIgnition Partners, Venture Capital– Venture Partner ‘02-present (active ‘02-’04)Venture Partner ‘02-present (active ‘02-’04)– Infrastructure software investments, Cloudmark, Inc.Infrastructure software investments, Cloudmark, Inc.
• Imperium Renewables, Inc., Biodiesel producerImperium Renewables, Inc., Biodiesel producer– CEO/Chairman ‘05-’08 first investor, $0-$89M revenue.CEO/Chairman ‘05-’08 first investor, $0-$89M revenue.– Scaled up tech from pilot to largest BD plant in world. Scaled up tech from pilot to largest BD plant in world.
• Kashless, Inc., ReCommerceKashless, Inc., ReCommerce– CEO/Founder ‘08CEO/Founder ‘08
• OtherOther– 27 personal venture investments27 personal venture investments– Founder Northwest Energy Angel Network.Founder Northwest Energy Angel Network.– Leading man, Biker Dreams the movie.Leading man, Biker Dreams the movie.– Blog www.deepgreencrystals.com, www.frombitstobarrels.com Blog www.deepgreencrystals.com, www.frombitstobarrels.com
![Page 4: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/4.jpg)
From Bits to BarrelsFrom Bits to Barrels• 1982 Timex Sinclair, Kaypro, Basic1982 Timex Sinclair, Kaypro, Basic
• 1984 OSU Cobol, cards, Pascal on MAC1984 OSU Cobol, cards, Pascal on MAC
• 1985 Leading Edge, ASOSU Treasurer, 11985 Leading Edge, ASOSU Treasurer, 1stst lab in MU. lab in MU.
• 1987 RPG on S/38 Andersen Consulting, 2 patents1987 RPG on S/38 Andersen Consulting, 2 patents
• 1989 Microsoft, power to the PC 1989 Microsoft, power to the PC
• 1997 Loudeye, a/v on every computer, 3 patents1997 Loudeye, a/v on every computer, 3 patents
• 2001 Ignition Partners, fund next big thing2001 Ignition Partners, fund next big thing
• 2004 Bored with tech, need next big market2004 Bored with tech, need next big market
• 2005 CEO Imperium Renewables, Biodiesel for all2005 CEO Imperium Renewables, Biodiesel for all
• 2008 Surf2008 Surf
• 2009 CEO Kashless, Inc., ReCommerce2009 CEO Kashless, Inc., ReCommerce
![Page 5: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/5.jpg)
The Scary StuffThe Scary Stuff
![Page 6: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/6.jpg)
WE are the problemWE are the problem
![Page 7: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/7.jpg)
THEY have the resourcesTHEY have the resources
![Page 8: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/8.jpg)
![Page 9: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/9.jpg)
Where is the Peak? We passed Where is the Peak? We passed itit
![Page 10: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/10.jpg)
% of WW GDP for oil% of WW GDP for oil
![Page 11: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/11.jpg)
Oil still relatively cheap
![Page 12: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/12.jpg)
Dramatic Changes: An Ice-free Arctic? 1979-2003:
Progressive Loss of Arctic Ice
![Page 13: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/13.jpg)
The big carbon emittersThe big carbon emitters
![Page 14: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/14.jpg)
The Frequency of Weather The Frequency of Weather Related DisastersRelated Disasters
Data from Swiss Re 2005
![Page 15: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/15.jpg)
Can we actually do Can we actually do anything?anything?
![Page 16: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/16.jpg)
New York City circa 1950New York City circa 1950
![Page 17: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/17.jpg)
New York City December 2001New York City December 2001
![Page 18: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/18.jpg)
Diesel Grew Quickly in Diesel Grew Quickly in EuropeEurope
49.3%
0%
10%
20%
30%
40%
50%
60%
1990 1995 2000 2005
EU-15 Diesel-Fueled Vehicle Share of New Car Registrations
Source: ACEA www.acea.be
0%
10%
20%
30%
40%
50%
60%
1992 1996 2000 2004
EU-15 Diesel Share of LDV Fleet & New Sales
Share of Fleet
Share of New Sales
![Page 19: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/19.jpg)
![Page 20: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/20.jpg)
Yes we canYes we can
![Page 21: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/21.jpg)
ReadingReading
• The Bottomless WellThe Bottomless Well, Peter Huber, Peter Huber
• The PrizeThe Prize, Daniel Yergin, Daniel Yergin
• Sleeping with the DevilSleeping with the Devil, Robert Baer, Robert Baer
• InfidelInfidel, Ayaan Hirsi Ali , Ayaan Hirsi Ali
• Energy at the CrossRoadsEnergy at the CrossRoads, Vaclav , Vaclav Smil Smil
![Page 22: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/22.jpg)
Key InsightsKey Insights
• Oil crisis, not energy crisisOil crisis, not energy crisis
• Americans are lazyAmericans are lazy
• Solutions must be upgrades not Solutions must be upgrades not platformsplatforms
• Entrepreneurs will find the solutionsEntrepreneurs will find the solutions
![Page 23: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/23.jpg)
23
• Corn Ethanol
• Biodiesel
• Solar PV
• Wind
• Geothermal
The Markets You Think OfThe New Green
• Engines ($200B)
• Lighting ($80B - US)
• Appliances ($10’sB+)
• Batteries + Flow Cells ($50B+)
• Gasoline ($500B+)
• Diesel ($500B+)
• Jet Fuel ($100B+)
• Cement ($100B+)
• Water ($500B+)
• Glass ($40B)
• BioPlastics ($10’sB+)
Generation - $250B - US
• Solar Thermal
• EGS
• Clean Coal
• New Nukes
Think big markets not Think big markets not ““greengreen””
![Page 24: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/24.jpg)
Areas of promiseAreas of promise
• Software meets energySoftware meets energy• Next generation liquid fuels, esp Next generation liquid fuels, esp
feedstockfeedstock• Enhanced GeothermalEnhanced Geothermal• Unregulated water powerUnregulated water power• Captive energy markets (NE, Hawaii, etc.)Captive energy markets (NE, Hawaii, etc.)• Materials with strong IPMaterials with strong IP• Waste to energy, enhanced biomassWaste to energy, enhanced biomass• Consumer solutions today.Consumer solutions today.
![Page 25: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/25.jpg)
How I decideHow I decide
• Early market with meta trends I believeEarly market with meta trends I believe
• Technology advantageTechnology advantage
• Personal advantagePersonal advantage
• Some kind of fundamental inefficiencySome kind of fundamental inefficiency
• Direct path to marketDirect path to market
• Minimal regulatoryMinimal regulatory
• Capitalization matches environmentCapitalization matches environment
![Page 26: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/26.jpg)
Why Loudeye?Why Loudeye?
• Trend: Audio/video become standardTrend: Audio/video become standard
• 1997: 14.4 modem, Real Audio, QT CD only, 1997: 14.4 modem, Real Audio, QT CD only, MS Netshow, $100/minute encodingMS Netshow, $100/minute encoding
• Problem: multi-format, cost of encoding, Problem: multi-format, cost of encoding, software applications.software applications.
• Value prop: Scale multi-format input/output Value prop: Scale multi-format input/output encoding and mgmnt apps.encoding and mgmnt apps.
• Result: the first large scale digital media Result: the first large scale digital media deployments, Apple iTunes, XM Sat, etc.deployments, Apple iTunes, XM Sat, etc.
![Page 27: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/27.jpg)
Why Imperium Renewables?Why Imperium Renewables?
• Trend: Peak oil, lack of drop in alts.Trend: Peak oil, lack of drop in alts.
• 2004: $45/brl oil, 25MG BioD, peak oil2004: $45/brl oil, 25MG BioD, peak oil
• Problem: scale of alternative liquid fuels.Problem: scale of alternative liquid fuels.
• Value prop: Scale up capacity, grow alts.Value prop: Scale up capacity, grow alts.
• 2007: $145/brl oil, 300MG BioD, peak oil.2007: $145/brl oil, 300MG BioD, peak oil.
• Result: the largest biodiesel Result: the largest biodiesel manufacturing in world, world wide plan, manufacturing in world, world wide plan, biojet, algae. biojet, algae.
![Page 28: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/28.jpg)
Some lessons from Some lessons from ImperiumImperium
• The GoodThe Good– Technology and scale up workedTechnology and scale up worked– Right about petroleum prices, structural change.Right about petroleum prices, structural change.– Capital markets initially favorable.Capital markets initially favorable.– Biodiesel fundamentals WAY better than Ethanol.Biodiesel fundamentals WAY better than Ethanol.
• The BadThe Bad– Tech not enough when inputs rise faster than outputs.Tech not enough when inputs rise faster than outputs.– Long term debt for new build technologies VERY HARD.Long term debt for new build technologies VERY HARD.– When your comps tank (ethanol), you tank.When your comps tank (ethanol), you tank.– Don’t give your first big customer equity.Don’t give your first big customer equity.– Don’t change growth strategy in midstream.Don’t change growth strategy in midstream.
![Page 29: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/29.jpg)
Biodiesel in IndonesiaBiodiesel in Indonesia
• $115K start up cost
• 1,500l/day coconut biodiesel plant.
•9,000Rp/l fully loaded production costs B100
• Diesel 13,000Rp/l delivered.
• diesel customer saves $, local economy keeps money on island.
Sumba Foundation and Tobias Foundation
![Page 30: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/30.jpg)
Why Kashless, Inc.?Why Kashless, Inc.?
• Trend: Recession, climate change.Trend: Recession, climate change.
• 2008: 15M users, 60Mpv, CL, FS, <1%2008: 15M users, 60Mpv, CL, FS, <1%
• Problem: inefficient market for free, Problem: inefficient market for free, reuse and lack of marketing reuse and lack of marketing awareness.awareness.
• Value prop: eBay for free stuff, GHG Value prop: eBay for free stuff, GHG tracking, local, social net integration.tracking, local, social net integration.
• Result: ?Result: ?
![Page 31: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/31.jpg)
CompetitionCompetitionKash Craig
All products Y Y Y - Y
Tax receipt Y - - - -
Adv. Search Y - - - Y
Reputation Y - - - Y
Scheduling Y - - - -
Points Y - - - Y
eComm integr. Y - - - Y
Multi notification Y - - - Y
Widgets Y - - Y Y
Delivery tools Y - - Y Y
Cost % of trans 0-2 0 0 2-5 9-20
$ $
features
features
craigslist
Kashless
![Page 32: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/32.jpg)
Success in Green means…Success in Green means…
• Change Coal, materials, efficiency, or oil.Change Coal, materials, efficiency, or oil.• High capital effeciencyHigh capital effeciency
– Total raise to exit < $25MTotal raise to exit < $25M– Declining costs with scale.Declining costs with scale.– Short innovation cycle.Short innovation cycle.
• Clear, direct path to customer.Clear, direct path to customer.• Pricing power in value chain.Pricing power in value chain.• Low regulatory hurdles.Low regulatory hurdles.• Product can achieve unsubsidized competitiveness.Product can achieve unsubsidized competitiveness.
![Page 33: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/33.jpg)
In the end…In the end…
• Do what you are passionate about.Do what you are passionate about.
• Look for ability to add unique valueLook for ability to add unique value
• Work is better than study.Work is better than study.
• [email protected]@kashless.org
• We have internshipsWe have internships
• http://www.deepgreencrystals.comhttp://www.deepgreencrystals.com
![Page 34: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/34.jpg)
Background slidesBackground slides
![Page 35: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/35.jpg)
Recognized Renewable Energy Expert
![Page 36: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/36.jpg)
Liquid fuels data dumpLiquid fuels data dump
![Page 37: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/37.jpg)
Some fun with Oil numbersSome fun with Oil numbers
• +$60/barrel = + $735B for top 8 oil producers+$60/barrel = + $735B for top 8 oil producers• Russia is now leading oil producerRussia is now leading oil producer• 70% of oil futures are “financial” in 2007 up from 70% of oil futures are “financial” in 2007 up from
40% in 200540% in 2005• 95% production gains from spare capacity95% production gains from spare capacity• 1% oil demand increase = 40% price increase1% oil demand increase = 40% price increase• WW production essential flat since 2005WW production essential flat since 2005
![Page 38: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/38.jpg)
Oil Infrastructure Rusting Away
• Almost every component of oil and gas systembeyond original design life and rusting away.
• If the system is not rebuilt,supply will artificially sufferacute drop in next decade.
• Rebuilding the industry infrastructure will cost$ trillions ($50 to $100 trillion?) (Simmons).
![Page 39: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/39.jpg)
Time for Oil to go bye-byeTime for Oil to go bye-bye
![Page 40: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/40.jpg)
GHG data dumpGHG data dump
![Page 41: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/41.jpg)
U.S.: Emerging State-Level CO2 Regulation
Source: CO2e.com
![Page 42: Mgt Building A Green Business Osu Jan09](https://reader035.fdocuments.net/reader035/viewer/2022062419/5589db78d8b42a3a1d8b470a/html5/thumbnails/42.jpg)
www.azfoo.net