Lance Miller, president of clean diesel start-up DieselTek discusses the harmony between the company’s managers and its investors. In my experience, this is commonly a sticking point for fledgling organizations, where investors want to make a quick filling, drive to a liquidity event, e.g., an IPO or a merger with a publicly traded organization, and get out. This often contrasts with the intention of managers who may a deep and abiding passion for the subject, and may wish to make it their life’s work.
A recent letter to President Obama supporting nuclear energy was composed and signed by many people whom I have no doubt are genuinely distinguished and dedicated energy experts, and who I’m certain all sincerely and ethically follow their best lights on this subject. I’d like to supply some contrasting perspective.
In my estimation, there are six major factors that bear consideration in any complete discussion of the pursuit of nuclear energy:
Lance Miller, president of DieselTek, speaks with on how start-ups form in clean diesel — or anywhere, for that matter. Lance corroborates my own belief that great partnerships are built on core, innate trust and affinity than on a cold, rational appraisal of a partner’s value in some sort of mathematical equation.
As it turns out, both Lance and the company’s founder and CEO, Eric Wheeler, have had their hands on mechanical devices — and had life circumstances that steered them towards entrepreneurship — since they were boys.
Sam Smith, of EV World Associates (an organization of which I’m a part) talks to me about electric vehicles and their history on a recent episode of the 2GreenEnergy Report.
“… electric vehicle startups require large amounts of capital to go into production. The continuous need for large capital infusions makes partnerships with established companies with large balance sheets essential. I think some of these ventures would eventually be absorbed by the Hondas and Toyotas of the world.”
Good points, Abhishek — thanks for writing in. And yes, you’re right that a great deal of consolidation is in the cards. But I guess I always thought there was a place for the start-up EV manufacturer — but so far there has been essentially nothing but carnage.
I’m wondering what’s behind all this failure. I’m reminded of the numerous “Plug In” conferences I’ve attended, expecting a feeling of exuberance in the air — but instead sensing a kind of dread. And that dread is simply what you’re talking about: the fear that the big guys will do this at their leisure — and then crush the start-ups like so many grapes.
Having said this, we need to acknowledge that starting a car business from scratch is a lofty endeavor. I’m amazed to see that CODA just raised $58 million in series-C money. Those are some bold investors, I can tell you that.
If I were giving advice, I’d suggest aiming for a niche. Compete in a space that is well-defined – probably one that is too small to receive the attention of the large OEMs.
I want to thank everyone who attended Tuesday’s webinar with Bill Paul. In his characteristically humble manner, Bill asked me as we were leaving the room if he handled himself well with the questions from the audience and me. Yes, Bill, you were terrific. I apologize, however, for the technical glitches. We’re scheduling another webinar soon, and I promise to have addressed the noise issues and other annoyances.
Bill Paul, with his unique economic perspective on the renewable energy industry, will be featured on a live and totally free webinar, this Tuesday, May 11th at 1 PM EDT (10 AM PDT). Sign up here.
Though my core strenth is not investment banking, I like to think that I’ve learned something through my many discussions with Bill — and I highly recommend your participation — if you’re thinking about taking a serious financial risk in “new energy” (as Bill likes to call it).
Tuesday’s webinar will focus on mergers and acquisitions – in particular, the most likely take-over targets through the remainder of 2010. As Bill explained it to me, “Big M&A means big transfers of wealth. The price of a few dozen publicly-traded equities will go through the roof as their deals are contemplated and ultimately consummated. Others are just about to hit the skids. Huge fortunes will be are made — or lost.”
I hope I’ve made it clear that his webinar is not for everyone. In particular, I happen to know that a large percentage of the 2GreenEnergy audience has invested most of its net worth in entrepreneurial ventures, and is not sitting around with serious cash to put into speculative ventures right now (like today’s stock market). Thus, I’ll understand if only a few people attend – but I somehow know that they’ll be the right people. Again, here’s that link.
A recent letter to President Obama supporting nuclear energy was composed and signed by many people whom I have no doubt are genuinely distinguished and dedicated energy experts, and who I’m certain all sincerely and ethically follow their best lights on this subject. I’d like to supply some contrasting perspective.
Abhishek writes in:
Bill Paul, with his unique economic perspective on the renewable energy industry, will be featured on a live and totally free webinar, this Tuesday, May 11th at 1 PM EDT (10 AM PDT). 
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