C T GI N S I G H T S A BI-MONTHLY REVIEW OF KEY TRENDS AND UPDATES, FROM ACROSS OUR GLOBAL INNOVATION COMMUNITY

JUNE 2016

2 W e l c o m e t o t h e P i l o t E d i t i o n !

4 D I S S O N A N C E & D I S R U P T I O N : C o m p e t i n g w i t h N e g at i v e Y i e l d s

6 A t t h e c u t t i n g e d g e : B l o c k c h a i n m e e t s e n e r g y – i n i t i at i n g c o v e r a g e

9 D I G I TA L + I N D U S T R I A L : T h e I n t e r n e t o f E n e r g y ( I o E )

1 1 I n t e r s e c t s : F o o d T e c h a n d t h e s u s ta i n a b l e f u t u r e

1 3 F r e s h F a c e s : N e w c a p i ta l , c h a n g i n g c a p i ta l

1 5 E a s t m e e t s w e s t: P u n c h i n g A b o v e Y o u r W e i g h t

1 6 f o l l o w t h e l e a d e r s : G l o b a l c l e a n t e c h 1 0 0

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What’s new? Who’s new in our ecosystem that I should know about? What are the big innovation trends? What’s next? What should we make sure our executives are aware of? Can I have a copy of your slides?

These are the most common questions I have been asked in my seven years at Cleantech Group (CTG). In many ways, CTG Insights is a response to those questions. It is a recognition that CTG is in a unique and privileged posi-tion to monitor and assist a global innovation ecosystem, by sharing more of what we are seeing out there, as we continue to scan the ever-changing innovation landscape.

I believe the reason that people come to us for answers is that every hour of every day – across the world – our team is monitoring and recording market and deal-making activities, identifying new innovation companies, speaking to executives with innovation mandates, and catching up with our clients and contacts on their latest news.

We receive signals – signals of where momentum is heading, signals of the future coming. We receive data – data that when aggregated, can reveal clear trends – or at least weak indicators of something worth looking at. We see the intersects of different innovations and industrial sectors, and how the trends in one industrial silo may be of rel-evance and interest to others. We believe providing more of the “big picture” outlook will help our time-poor clients decide who and what they should be paying attention to, according to their particular innovation mandate.

With this pilot edition, we want to give you a sense of the purpose of CTG Insights. It will be organized around key themes and research streams (see page 3) that we think are of high importance. We will revisit these research streams over time to keep each edition relevant.

For example, in this edition you will find our featured article under our At the Cutting Edge theme. At the Cutting Edge will showcase and provide updates on any early innovation trends that we believe will impact the cleantech and resource world. For our first article, we highlight blockchain as an area we are now monitoring and explain why we believe you should be paying attention.

In a more inter-connected, international and faster-moving innovation world, while facing an ever more uncertain future, we are aspiring – through CTG Insights – to provide you a checking mechanism that you are seeing the key trends, players and happenings in the space. We don’t pretend to have all the right answers. None of us do.

Whether or not we continue to publish CTG Insights beyond the pilot edition – we have in mind six editions per year – will depend on your feedback. Its focus, format and frequency you can influence – write directly to me, any CTG team member, or editorial@cleantech.com today. Furthermore, we will be seeking out guest contributions for future editions. Please be in touch – I’d like to hear your ideas for future contributions you might make.

Richard Youngman, CEO

WELCOME TO THE PILOT EDITION!

BY RICHARD YOUNGMAN, CEO, CTG

FOREWORD

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Dissonance & Disruption CTG Insights will provide you with a

steady flow of signals we see as interest-ing and important indicators of a changing operating context.

Intersects CTG Insights will highlight examples of impactful and disruptive

intersects occurring between traditional industrial sectors, that not only challenge cleantech’s gravitational core, but also provide glimpses of the future possible.

Digital + Industrial CTG Insights will cover a key intersection – the

digitalization of the physical, industrial world – and the state of change toward truly “smarter” industry.

At the Cutting Edge CTG Insights will keep an eye out, cut through

the hype, and look to bring to your atten-tion early warnings on trends we believe will be important enablers of future inno-vation waves.

Innovators + Incumbents CTG has been active in bringing corporations

and start-ups together. This theme will highlight select strategic partnerships, to illustrate how this important dynamic is playing out in a more open innovation world.

Fresh Faces Recognizing the impor-tance of new arrivals into our inno-

vation ecosystem, we will highlight to you new players – a range of individu-als, investors, multi-national corporations, and new innovation programs to watch out for.

Follow the Leaders Updates and news on our Global Cleantech

100, an annual list of 100 companies from across the breadth of the clean-tech theme, identified by the market as the most likely to make significant impact within a 5-10 year timeframe.

Capital & Syndication Matters CTG Insights will track where capital is

coming from, and how models and syn-dicates are changing over time.

East Meets West For some time we have been expecting to see a grad-

ual rise in deals that exhibit the coming together of western technology/innova-tion with Asian partners, be that finan-cial, industrial or government. As part of our tracking of the global cleantech land-scape, we will highlight examples we see.

THEMES EXPLORE We will explore key themes and research streams, as described below, that we think are of high importance, though not all themes will be included in each edition.

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CTG Insights will provide you with a steady flow of signals we see as interesting and important indicators of a changing operating context.

The objective of this column over time will be to share interesting charts, facts, and quotes which we regard as signals of the dissonance and disruption we all have to learn to cope with today. These will be deliberately drawn from a wide variety of sources on a wide variety of subjects, to stimulate our big picture thinking, as we tread uncharted paths and transition towards the very different world our grandchildren will experience, compared to the one we inherited from our own grandparents.

As the years unfold from here, one key question of great interest and relevance to all is, “Where will inves-tors put their money? ” The old models and expectation sets are severely disrupted. Consider these signals:

• Almost 25% of the world’s GDP now comes from countries with negative interest rates. Europe’s largest asset class is negative-yield-ing debt – over €3 trillion.

• Negative yields are not just evident in short-term investment products. Incredibly, in the past few weeks we have seen the bond yields on 10-year German and 30-year Swiss govern-ment bonds going negative.

• The so-called term premium on the 10-year US Treasury is at a record low – meaning, there is no longer any extra compensation for lending long-term to the US government (see chart).

• Global fund managers’ cash stockpiles, according to a recent Bank of America Merrill Lynch survey, are at their highest level since November 2001, higher even than during the Wall Street meltdown of 2008.

Source: Capital & Conflict

So what...?This is clearly a fearful market, a market in which investors are more worried about safety and the return of their capital than the return on their capital. And why should we expect that to change any time soon, when “bond king” Bill Gross does not? “You have a better chance of observing another era like the pre-vious 40-year one on the planet Mars than you do here on good old Earth,” he wrote in his June outlook, referring to the incredible 7.47% compound return that investment grade bond markets have provided

COMPETING WITH NEGATIVE YIELDSBY RICHARD YOUNGMAN, CEO, CTG

DISSONANCE & DISRUPTION

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You have a better chance of observ-ing another

era like the previous 40-year one on the planet Mars than you do here on good old Earth.”

- Bill Gross, Janus Capital

conservative investors since 1976, with equity investors enjoying another 3% of annual return (including dividends) on top of that.

Clearly this has many implications for global economic growth, your near-term capital market plans and all our personal finances. The point I am trying to make for the sustainable investment and innova-tion world, however, is two-fold:

1. The old models and asset allocation approaches no longer look fit for purpose. New homes for capital and approaches to investment will be required. Change and the need for innova-tion in finance and investment is afoot. The smartest know it and are already preparing. Are you?

2. Allocations towards “alternative investments” stand a good chance of increasing in the coming years. If collectively, we can evolve a set of investable financial instruments that help innovations first develop and then scale, sustainable invest-ment should receive a healthy share of new normal investing in the coming years. There has never been a better time to show investment products to compete for capital with the risk/reward profile of negative-yielding debt.

Join us for our 15th annual Cleantech Forum San Francisco – our Crystal Anniversary!

Charting the Future, Connecting the Globe continues to be at the core of what the forum offers. Cleantech Forum San Francisco remains the annual gathering of the global innovation community, offering a com-prehensive, multi-day program with exclusive opportunities to learn, network, and get deals done.

Registration is now open: bit.ly/CFSF17reg

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Our At the Cutting Edge series will keep an eye out, cut through the hype, and give early warnings on trends we believe will be important enablers of future innovation waves. Expect articles and interviews on topics like 5G, gene editing, virtual reality, artificial intelligence and more. For this pilot edition, we will dwell on what promises blockchain technology holds for smart grids, IoT and logistics.

Last April, at Cleantech Forum Europe in Lyon, we invited Dr. Ana Trbovic from Grid Singularity to present her company’s exploratory role at the intersection of blockchain and energy. In the audience, some of the top European VC firms, large industrials and start-ups were listening avidly. Since then, we have had the opportunity to exchange thoughts on the topic with many in the industry. Our discussions revolved around 3 questions:

1. What is blockchain technology? Why does it matter?

2. What are early applications in the cleantech space?

3. What does the investment landscape look like?

This article aims to express our current thinking on these questions, and highlights our initial company cov-erage of the technology.

In a word, a public blockchain is a distributed ledger that can process and record transactions. Every node – or participating computer – in the network can inspect this ledger, but no one controls it. This system removes the need for a central authority or database that must be trusted to keep information secure and accurate. The technology was developed to power bitcoin transactions and wallets, but its potential applications go far beyond that.

Using a public blockchain as infrastructure for transactions or keeping records means lower costs, through the absence of a middleman, but also more security and transparency. Most of all, it allows users to create smart contracts, in which specific conditions and layers of signatures can be coded to make a transaction safer. For instance, the payment for a shipment can be automatically released when both the delivery person and the recipient signs off on it.

Blockchain technology is already poised to disrupt the financial industry. What can it change in our world of energy, data and connected devices? Potentially, a lot.

What is blockchain technology and why it matters

BLOCKCHAIN MEETS ENERGY – INITIATING COVERAGEBY JULES BESNAINOU, DIRECTOR, CTG

CONTRIBUTIONS FROM CHRIS SWORDER, ANALYST, CTG AT THE CUTTING EDGE

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Early applications in the spaceA few segments we track are characterized by a collection of small transactions that could be made more efficient through a secure, decentralized ledger, or through the use of smart contracts. Some of these seg-ments include:

• Smart grid, and especially demand/response, where devices are constantly in transaction mode with one another. Pilot projects, such as LO3 Energy’s Brooklyn Microgrid, have dem-onstrated the possibility of using blockchain to manage transactions between generation assets and loads. Utilities in particular should watch this space.

• Energy access, as most solutions being deployed at the moment include small transac-tions between operators, individual producers and buyers.

• Internet of Things, where an increasing number of devices need to communicate with each other, and using centralized networks to handle sen-sitive data could pose security risks and be cost-inefficient.

• Supply chain, and the general efficiency of logistics, dictated by how fast a good gets from one node to the other.

• Financing, where decentralized crowd-funding platforms could be a source of funds for energy-related projects.

This last segment provides a cautionary tale on the promises of blockchain and smart contracts. The DAO, a pioneering decentralized crowd-funding platform, recently made headlines when it raised $169m in 4 weeks to finance blockchain-related projects. It came under fire just a few weeks later when an attack exploiting a smart contract stripped it of more than a third of its underlying value.

Electricity Grid Supply Chain

Platforms

IoT

Start-up landscape: blockchain meets resources

Smart Contract Transportation

3D Printing

Toolboxes

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So...who’s taking the plunge?At the moment, most investors and corporates in our ecosystem are watching the action from the side-lines. However, we note some early activity:

• German utility RWE has come out as a believer in the intersection between blockchain and energy. Through their partnership with Slock.it, they are experimenting around charging station transactions. They have also sponsored a blockchain innovation competition, in which a decen-tralized Uber competitor (Arcade City) and a supply chain-oriented start-up (CargoChain) won first and second prizes, respectively.

• Dutch industrial Philips has created a blockchain lab, initially to pilot healthcare initiatives, but which could benefit other businesses.

• On the IoT side, Microsoft, IBM, and Samsung are some of the major corporations working on concept projects that tie together a network of ‘enabled devices’ using blockchain infrastructure. Filament, a Samsung Ventures portfolio company, is developing such a solution.

To assess the imminence of deals in the space, we asked investors and corporates in our network about their interest in blockchain. Here is our best read of market signals:

• Most firms and corporate units we talked to have at least one person interested in the space generally, but few are segmenting it or making a case for one of the specific applications listed above;

• Investors question the business models behind blockchain opportunities, and rightfully worry about the hype effect;

• The field is still quite open, but some early movers are getting attention from top players in the industry.

We believe that some of the companies in the landscape shown have the potential to close early-stage rounds in the next 12 to 18 months. For example, the use of blockchain in logistics and traceability is probably the closest to our space to have already attracted funding. Organizations like Chronicled and Provenance propose a clear value proposition and have both secured funding from Pantera Capital and Telefonica’s Wayra accelerator, respectively.

This field is moving fast, from a technological standpoint as well as in its applications. As the hype around blockchain technology grows, investors will find that they have a relatively short window to evaluate the space and decide to make a move - or pass for now.

You can find and follow our full sector and company coverage (35 start-ups and growing) at i3connect.com/tag/blockchain. We’d be glad to hear from you as you consider this space. Feel free to email editorial@cleantech.com with any comments or questions.

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The Internet of Things (IoT) theme has brought about communicable interconnection among multiple devices, and we have seen firsthand its applications in the consumer market. Products such as smart TVs, consumer wearables, and even home security systems have become the new industry norm. As the cost of sensors has declined rapidly over the past few years, the IoT theme continues to expand into other application areas, including healthcare, retail and many others.

One major IoT-enabled transformation currently underway is the Internet of Energy (IoE) theme –bring-ing IoT technologies to the industrial power and energy industries. We have already witnessed success stories like Nest in the home energy automation space, and continue to see an upward trend in venture equity investments into the IoE field.

We have observed five major themes in IoE that have shown significant recent development, illustrated in the diagram, of which the intersection of ‘digital’ with ‘industrial’ is certainly one.

Digital + Industrial: CTG Insights will cover a key intersection – the digitalization of the physical, industrial world – and the state of change toward truly “smarter” industry.

UtilitiesIndustrials

Residential / Smart Homes

Oil & Gas

Internet of Energy (IoE) Themes

Commercial Buildings

• Oil & Gas – We have witnessed the development of the digital oil-field for some time, which focuses on real-time data gathering and is driving efficiency gains for oil & gas exploration and production. Today, the digital oilfield is expanding beyond data gathering into real-time data analysis, ultimately pro-viding more valuable insights in areas such as risk reduction and preventive maintenance.

• Industrials – Perhaps one of the most promising application areas for IoE is for the diversified industrial manufacturing vertical. Industrial automation and machine learning are two of the most talked about solutions that can unlock huge process efficiency savings and increase quality standards.

THE INTERNET OF ENERGY (IOE)BY LEO ZHANG, SENIOR ANALYST, CTG

DIGITAL + INDUSTRIAL

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• Utilities – IoE can also play a significant role in the aging utility sector, whereby the automation of the electricity grid and precise demand-response man-agement capabilities can ensure reliable and cost-effective electricity delivery.

• Commercial Buildings – Enterprise energy man-agement is another key application enabled by IoE. Because of IoE’s ability in connecting complex assets in real time, building owners can now improve their energy efficiency and become more energy resilient.

• Residential / Smart Homes – As evidenced by Nest’s $3.2 billion acquisition and subsequent expan-sion of services, IoE in the residential space has not only triggered home energy management, but also enabled other areas of home automation and home security.

To take a closer look at how IoE is transforming and changing the status quo, the O&G industry is a perfect example to illustrate such transformation. Falling oil prices over the past year has undoubtedly exerted even more pressure on the O&G industry. Nevertheless, we still see a strong interest from oil majors in the IoT area, evidenced by the recent $26 million Series B round raised by MAANA, a devel-oper of an advanced analytics platform that turns data into insights. MAANA was able to attract multiple major O&G producers, including Saudi Aramco Energy Ventures, Shell Technology Ventures, Chevron Technology Ventures, and ConocoPhillips, an indication of investors’ confidence in potential cost-savings that IoT-based software can achieve.

With oil prices hovering around $50 per barrel, MAANA is leveraging the current state of the O&G indus-try to improve and expand its product offering and application areas. The O&G industry may be the first market application, but it is very much likely to expand into other diversified industrials as well, given the strategic influence from its two other major investors, GE Ventures and Intel Capital.

IoE will continue to have a big impact as hardware costs continue to fall, and as more robust software systems are developed to handle the growing complexity of the world. In the following editions, we will explore the digitization of a multitude of other industrial settings.

If any industrial setting is of particular interest for future editions of Digital + Industrial, please send your suggestions to editorial@cleantech.com.

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Food, energy and personal empowerment are incred-

ibly intertwined. What’s important to us is that the addition of technology is playing a catalytic role…

On April 27, CTG, in partnership with Silicon Valley Bank, Wilson Sonsini Goodrich & Rosati, and Galvanize, hosted a breakfast event focused on opportunities and emerging businesses at the intersection of FoodTech and sustainability. Andrew Beebe, Managing Director at Obvious Ventures, helped lead a dynamic conver-sation among start-ups, investors, and other industry stakeholders. He spoke with us on some of the key themes discussed at the event:

tastes and beliefs with regard to authenticity in packaged goods is huge, and here to stay. Other people don’t yet get that. That’s a great place to invest.

CTG: How does investing in the food space compare to the energy space – where you cut your teeth – and where Obvious also has a focus?

AB: We’re bullish on aspects of both. They’re similar in that tech advances in other areas are coming over to help speed devel-opment and change. But they’re different in that so much of energy is business-to-business and CPG tends to be more consumer and brand focused.

CTG: Obvious’ investment themes of sustainable systems, people power, and healthy living aren’t necessarily mutually exclusive. You’ve expressed that sustainabil-ity can be – and often is – an added benefit of new business models tar-geting healthier food. At one point during the conversation (and this isn’t the first time you’ve pointed this out at one of our events) you wished aloud that we’d all stop

CTG: Andrew, based on Obvious’ current food-focused portfolio – Beyond Meat, Miykono’s, Olly, and Urban Remedy – it seems you guys have a pretty consumer prod-uct-focused investment thesis. Is that a fair way to describe it, and is there something that all these companies have in common that originally attracted the fund?

AB: [Consumer packaged goods] CPG investments are around 15% of our total portfolio. But I think it’s true to say that we may have a con-trarian position on a few different sectors, and CPG is one of them. We believe the macro trend we’re seeing globally around changing

worrying so much about defining the “clean” or “green” theme as it pertains to tech-investing. Can you elaborate on what you meant?

AB: Our three themes are def-initely a Venn diagram. Food, energy and personal empower-ment are incredibly intertwined. What’s important to us is that the addition of technology is playing a catalytic role in many aspects of these respective themes. Where it does, and where the needs for transformation are massive, we see great opportunities. You won’t see us focused on ad-driven, ephemeral deals that focus on the next dating (or similar) apps. We’re only interested in companies attempting to solve the world’s sys-temic challenges.

FOODTECH AND THE SUSTAINABLE FUTUREBY TROY AULT, DIRECTOR OF RESEARCH, CTG

INTERSECTS

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The Needham, Massachusetts-based start-up, which raised $5M in convertible debt from WindSail Capital Group in May, sees consumer health first and environ-mental impact as perhaps a close second benefit of its seasonal, plant-based recipes.

Japanese CVC Dentsu Ventures joined Exo’s Series A round in May. The company highlights both the envi-ronmental and nutritional benefits of protein from cricket flour compared to livestock sources like beef, pork, and poultry.

A Growing Trend

Like many other food/ingredient-delivery services, London-based Farmdrop bases its business model on customer convenience and better quality produce first, while reduced waste and localvore environmental are great additional benefits. Atomico, JamJar Investments, and several angel investors added $4M to its growing pot in February.

Obvious Ventures’ Venn-diagram approach to the world certainly aligns with our own activities here at CTG. We see a large portion of the technology and business model innovation in the food space as highly relevant to the world of sustainability – whether directly or indirectly. For instance, Zukeeni, one of the companies represented on our April 27th panel, sees social networking and the growth in popularity of home-gardening as primary drivers of its business. Lower greenhouse gas emissions related to supply chain efficiencies from localized production and consumption, meanwhile, are more of a bonus.

Looking at venture deals so far in the first half of this year, similar examples include:

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Recognizing the importance of new arrivals into our innovation ecosystem, we will highlight to you new players – a range of individuals, investors, multi-national corporations, and new innovation programs to watch out for. This edition’s commentary highlights a selection of the latest funds and investors, bringing fresh faces and fresh capital into the community.

Capital and cleantech are changing fast. Out of the 400 venture capitalists and corporates that have invested in a cleantech company in 2016, 35 percent were making their first cleantech investment. So far in 2016, nearly 20 investors have announced final or interim closes of new funds with a focus to invest in cleantech companies. Only 6 of the most active 20 cleantech investors of 2012 were still amongst the most active in this past year.

Such shifts, both in terms of the identity of, and the models used by, the investors have big implications for how future innovation companies get funded - or not. This is important to keep an eye on, particularly across cleantech themes in which unique syndicates comprising private equity risk capital and industrial partners need to form and work effectively together through the development cycle for such innovations to succeed.

Emerald Industrial Innovation Fund LP (May 2016)Emerald Technology Ventures (ETV) is back with the launch of a new fund, Emerald Industrial Innovation Fund LP (EIIF), with commitment from industrial giant, Caterpillar. The fund will invest in early and expan-sion stage companies in energy, water, advanced materials and indu-strial IT.

While ETV is not a new venture, they have put a fresh face on fundrai-sing and fund-structuring. The new approach has been to innovate around the “herding the corporate cats” problem, whereby a fund mana-ger needs many strategics to line up at the same time to achieve a close. The details are proprietary, but from a recent conversation with ETV, we understand that, in effect, an evergreen structure has been created to allow corporations to join the fund when they are ready, as opposed to joining on a set timetable. We will pick up on such innovations on the fi-nancing side in future editions under our Capital and Syndication Matters theme.

NEW CAPITAL, CHANGING CAPITALBY STEPHEN MARCUS, DIRECTOR, CTG

FRESH FACES

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Anterra Capital (March 2016)Anterra Capital announced a second close – now totaling $125 million – for its Food & Agriculture Technology Fund, making it the largest venture fund focused on this sector in Europe. The fund will continue to invest in emerging technologies that are transforming the safety, security and sustainability of the global food industry.

In May 2016, Anterra Capital announced that it had participated in the $30 million investment in Caribou Biosciences, a landmark investment in this field. Caribou Biosciences is a developer of CRISPR-Cas techno-logies for genome engineering that can be applied to the agricultural biotech, industrial biotech and therapeutics industries. CRISPR-Cas was one of the three enabling technologies featured at the 2016 Cleantech Forum Europe in Lyon under our At the Cutting Edge theme – and one to watch for in the future.

Statoil Energy Ventures (February 2016)Statoil announced the launch of a $200 million new corporate venturing fund, Statoil Energy Ventures. The fund will sit within its new business area, New Energy Solutions, reflecting its aspirations to gradually com-plement its oil and gas portfolio – which has long been held under a separate corporate venture fund, Statoil Technology Invest. Areas of interest for Statoil Energy Ventures include: offshore and onshore wind energy, solar, energy storage and transportation, energy efficiency and smart grids.

Save the date for our 13th annual Cleantech Forum Europe, hosted next year in Helsinki!

Join us for a gathering of the leading upstarts, investors and incumbent corporations from across all sectors of sustainable innovation. Create connections, get out of your everyday silos, and enjoy the annual Forum Awards dinner in ever more glamorous settings!

CTG INSIGHTS | JUNE 2016

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PUNCHING ABOVE YOUR WEIGHTBY RICHARD YOUNGMAN, CEO, CTG

EAST MEETS WEST For some time we have been expecting to see a gradual rise in deals that exhibit the coming together of western technology/innovation with Asian partners, be that financial, industrial or government. As part of our tracking of the global cleantech landscape, CTG Insights will highlight examples we see. For this pilot edition, we have two such examples.

We start by highlighting an “under the radar” story inasmuch as the Belgian company in question, Punch Powertrain, was not sufficiently well-known enough to make our latest Global Cleantech 100 list. In January 2016, the company was named as one of our Under the Radar companies, a sister list arising from the GCT100 process that highlights those companies worth watching out for.

In March 2016, it was announced that a sale and purchase agreement had been signed with the con-glomerate YinYi Group, one of China’s top 500 private companies, for them to acquire Punch Powertrain for an enterprise value of approximately €1 billion. This makes for quite the turnaround from 2010, when some Belgian investors took a stake in what was then a failing European technology company. Its contin-uously variable transmission (CVT) technology has been re-focused on the rapidly growing Asian – espe-cially Chinese – automotive markets, with group sales increasing by 500% over the last 5 years to more than €325 million. The product range has also been extended to provide cutting-edge hybrid and electric powertrains, positioning the company and its Nanjing production plant to benefit from the increasing focus on fuel efficiency and emissions reductions amid ever-increasing urban traffic growth.

This marriage of ‘excellent, but going nowhere in home markets’ technology with the needs of Asian markets to meet the twin demands of growth and sustainability, is central to the investment thesis behind our second East Meets West example for this edition – namely, a recent fund announcement from Andrew Chung.

Andrew, former partner at Khosla Ventures, announced in February 2016 that he had launched 1955 Capital with anchor commitments of $200 million to invest in technolo-gies in Europe and North America that will help solve big challenges in the developing world, starting with China. Key investing themes include air pollution, renewable energy and sustainable manufacturing, as well as food security and supply, health care delivery, accessible education.

Two examples with striking numbers. A case of punching above their weight, or an indicator of the power of East meeting West?

Any East Meets West examples to highlight, please contact editorial@cleantech.com Interested/active in this theme? Consider joining CTG’s 5th annual China Tour, November 1-3 2016.

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Follow the Leaders: Updates and news on our Global Cleantech 100, an annual list of 100 companies from across the breadth of the cleantech theme, identified by the market as the most likely to make significant impact within a 5-10 year timeframe.

Setting aside Uber’s $550 billion across its two outsized raises of Q2 (there was a third, worth a mere $200 million), a total of $685 million was raised across 31 venture equity deals by GCT100 alumni com-panies during the second quarter to June 24th. Engie acquired an 80 percent controlling stake in Green Charge Networks and plans to offer the company’s building energy storage and battery-solar technology to its commercial, industrial and public energy services customers. Green Charge Networks joins Sefaira and Kurion as another 2015 Global Cleantech 100 company with a successful exit. Here are key funding stats for GCT100 alumni so far in the second quarter of 2016 (excludes 3 billion-dollar-plus deals):

• $685 million in venture equity for all GCT100 alumni companies in 2016 so far

• $2.1 billion across 49 dilutive and non-dilutive funding events for all Global Cleantech 100 alumni companies in 2016 so far

• $900 million across 30 dilutive and non-dilutive funding events in 2016 so far for com-

panies on the 2015 GCT100 list

Top Performers – Energy Storage CompaniesAs highlighted in our most recent Global Cleantech 100 report, energy storage companies have been making it onto the list in greater numbers over recent years. In the second quarter of 2016, we can see evidence that this is set to continue. Four companies - Geli, Stem, Sonnen, and Aquion Energy - have all raised successful Growth Equity rounds in this past quarter. As mentioned above, Green Charge Networks, was acquired by Engie as part of the French utility’s push into smart cities and garnering a North American presence.

It is noticeable that whilst energy storage companies have had a strong quarter raising capital, a significant number (six) of GCT100 deals in Q2 were project finance rounds for distributed solar com-panies. As we wrote in the 2015 Global Cleantech 100 report, this would seem to follow the thesis that energy storage companies are entering rapid growth stages as solar companies are entering a more mature stage of financing.

FOLLOW THE LEADERSBY CHRIS SWORDER, ANALYST, CTG

GLOBAL CLEANTECH 100

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Energy storage companies are increasingly strategic investments for utilities and oil & gas majors (OGMs). Just looking at utility and OGM participation in GCT100 company funding rounds in 2016 we can find plenty of examples. Total Energy Ventures participated in the Q1 Growth Equity round for Sunverge Energy, as well as acquiring Saft for $1.1 billion in May. Total has also invested in Aquion Energy in 2014, but it is unknown whether they participated in Aquion’s most recent fundraising round, as no participants were disclosed. Shell Technology Ventures participated in Geli’s Series A round in April, and RWE partici-pated in the latest funding for Stem - two more energy storage investments made by OGMs and utilities.

The strategic importance of energy storage companies for utilities is best understood by looking at the business model German energy storage company, Sonnen, has developed. Sonnen, described by CEO Boris Van Bormann as ‘the Airbnb of energy,’ has introduced sonnenCommunity, which combines decen-tralized power generation, advanced battery storage technology and digital networking to create self-sustaining networks of power supply and power consumption. This type of business model, which is still dependent on utility-operated wires, creates a realistic platform for the utility to lessen its involvement at the energy services level, while engaging a service-provider like Sonnen to extract its grid-maintain-ing tariff. Sonnen has received a utility license in Germany and is already operating sonnenCommunity in their home market. The company is entering the American market, aided by a strategic investment from GE Ventures, and are looking for partnerships with US utilities.

Source: 2015 Global Cleantech 100 Report

Sector Representation Over Time: Compairson of Solar vs Energy Storge

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The following deal table shows all venture equity and non-dilutive funding events for GCT100 alumni companies in second quarter to June 16, 2016:

Recipient Company

GCT100 Year

SectorInvestment

TypeAmount Investors

2014, 2015 transportation Growth Equity $3.5 billionSaudi Public Investment Fund

2013 2015other cleantech

Structured Debt

$1 billionJP Morgan Chase, Citigroup, Bank of America

2010 2012

solar Project Finance $338 millionBank of America Merrill Lynch, Credit Suisse

solar Project Finance $227 millionJohn Hancock Life Insurance Company

2013 2014 solar Project Finance $200 millionDZ Bank, NY Green Bank

2015 solar Project Finance $120 million Investec

2010 2015 transportation Growth Equity $50 million

Linse Capital, BraemarEnergy Ventures, Constellation Energy, 2 others

2010, 2012advanced materials

Growth Equity $43.4 million

Woodford Investment Management, Imperial Innovations, Invesco Perpetual

2012 2015energy storage

Growth Equity $33 million -

2015other cleantech

Growth Equity $30 millionAndreessen Horowitz, KPCB, John Chambers, Next World Capital

2010, 2011 solar Growth Equity $24.1 million SMA Solar

2010 2015biofuels & biochemicals

Growth Equity $22.8 million PMV, FPIM

2013 2015 smart grid Growth Equity $20 millionEnergy Impact Partners, Envision Ventures, E.ON Ventures

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Recipient Company

GCT100 Year

SectorInvestment

TypeAmount Investors

2015agriculture & food

Growth Equity $18 million

Verizon Ventures, USAA, NTT DocomoVentures, Yamaha Motor Ventures, Intel Capital, 3 others

2014, 2015energy storage

Growth Equity $15 millionMithril Capital Management, RWE, Mitsui

2014, 2015other cleantech

Series B $12 million

Emergence Capital, CBRE Group, Microsoft Ventures, Claremont Creek Ventures, The Westly Group

2011, 2012 solar Growth Equity $10 million Hanwha Corporation

2012 smart grid Growth Equity $8.5 million AltEnergy

2015 smart grid Series A $7 millionShell Technology Ventures

2010biofuels & biochemicals

PIPE $5 millionBill & Melinda Gates Foundation

2014, 2015 solarStructured Debt

$4 million -

2010 2012 solarStructured Debt

$3.9 million -

2015 smart gridStructured Debt

$3 million -

2015advanced materials

Growth Equity $1.4 million -

2014, 2015energy storage

Growth Equity Undisclosed GE Ventures

2014, 2015other cleantech

Growth Equity UndisclosedBraemar Energy Ventures

Deal table continued...

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