c3 energy presentation clean tech entrepreneurship
TRANSCRIPT
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C3 ENERGY COMPANY
ASSESSMENT
TEAM 1
Divyesh Kumar, Daniel Ryan, Priya Thyagarajan, Pratik Mehta, Nalin Desphande
April 20, 2015
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INTRODUCTION
• C3 Energy offers smart grid analytics Software-as-a-Service (SaaS) solutions
• Enterprise wide approach provides utilities with end-to-end system visibility across the supply and demand side of smart grid operations
• The core of its analytics solution is its platformo Integrates massive amounts of
disparate datao Applies sophisticated multilayered
analyticso Provides highly usable portals that
generate actionable real-time insights
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MANAGEMENT TEAM
• Management team has deep experience in developing and managing companies, understanding of utility and software industries, and expertise in law and environmental policyo Thomas Siebel: Founder, Chairman, and Chief Executive of Siebel
Systems (large software company that merged with Oracle in 2006). A billionaire, formerly revolutionized customer relationship management (CRM)
o Ed Abbo: former Senior Vice President at Oracle, responsible for their application and SaaS products
o Peter Eidelman: Served as Chief Financial Officer at a number of companies and is a certified public accountant
o James Connaughton: Served as Executive Vice President at two large utilities and was chairman of the White House Council on Environmental Quality
o Pete McCarthy: Held various leadership positions at Silver Spring Networks (smart grid hardware company)
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CAPABILITY POSITION AND UNCERTAINTIES
• Current Positiono Utility tested, market ready products (fully commercial)o Intangible assets - patents, management team, industry
connections, and partnerships
• Major Uncertaintieso Dependency on energy infrastructure upgrades (e.g. T&D, AMI,
EMS)o Dependent on systems integration partners such as Accenture
for supporto Utility desire for “complete package” producto Target markets dependent on regulation and policies
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VALUE CHAIN
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POSITIONING FOR VALUE CAPTURE (PVC)
• Low (to moderate) Dependencies
• Low (to moderate) Leveragability
• Moderately difficult to Replicate
• High Connectivity
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COMPANY VALUATION
Top Down Valuation:• Total of 8 VC rounds (through 2013) with total funding of $64M: 3 in 2009, 4 in 2010 and 1
in 2013• IRR requirement of 40-70%
o Exit value after 8 years: $415Mo Exit value after 10 years: $1.1B
• IRR requirement of 20%o Exit value after 8 years: $60Mo Exit value after 10 years: $90M
Bottom Up Valuation:• Revenue at year 5: $60 million• Years to Maximum Revenue: 15 years, Maximum Revenue: $308M• Revenue at exit: 8 years $170M, 10 years $230M• Proxy: Teradata used for COGS, SG&A, R&D, and EV/EBITDA margins • Calculated EV for C3 Energy $312M
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INVESTABILITY
• Low (to moderate) Scalability
• Moderate Profitability• High Capital Intensity• High Diversification
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CONCLUSIONS AND RECOMMENDATIONS
• C3 Energy is a well-funded and well-connected startup • C3 Energy has high value capture potential
C3 Energy could increase value capture potential by:• Partnering with energy infrastructure manufacturers to
capture value in other segments of value chaino Smart Meters (AMI)o Substation (SCADA)o Transmission and Distributiono Grid Operational Management (EMS and DMS)
• Increasing focus on B2C business model
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THANK YOU!