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13 0723 session 1 & 2 webinars

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Cleantech Open2013 Webinar Series

Tuesday, July 23, 2013

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2 Cleantech Open Confidential Information – All Rights Reserved

Welcome to the National Webinar Series

• With the Cleantech Open since 2007• Mentor Chair 2007 - 2008• Executive Director 2008 - present

MC: Rex Northen,Executive Director, Cleantech Open

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3 Cleantech Open Confidential Information – All Rights Reserved

Global Partner

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4 Cleantech Open Confidential Information – All Rights Reserved

National Sponsors

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5 Cleantech Open Confidential Information – All Rights Reserved

Thank You To All Our Sponsors!

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6 Cleantech Open Confidential Information – All Rights Reserved

The Summer Program – July – September 2013

Date Time (PDT)

Session I – Worksheets Time (PDT)

Special Topic Sessions

7/9 1:30 to2:30pm Business Model Canvas (Review) 2:45 to

4:00pm LaunchPad Central (Review)

7/16 1:30 to2:30pm Product/Market Fit 2:45 to

4:00pm Systems Review, PR 101

7/23 1:30 to2:30pm Markets and Getting to Them 2:45 to

4:00pm Term Sheets

7/30 1:30 to2:30pm Product/Technology Validation 2:45 to

4:00pmAlternative Sources of Funding - Grant Writing / Crowd Sourcing

8/6 1:30 to2:30pm Financials Analysis & Planning 2:45 to

4:00pm IP Licensing from 3rd Parties

8/13 1:30 to2:30pm Legal Environment, Issues and Risks 2:45 to

4:00pm Cap Tables

8/20 1:30 to2:30pm Management Team 2:45 to

4:00pm Working with the Utilities

8/27 1:30 to2:30pm Sustainability 2:45 to

4:00pmTell Your Story, Sell Your Story (Communicating value to stake holders)

(9/11) 1:30 to2:30pm

Investor PresentationMentor Assessment

2:45 to4:00pm

Mock Judging, Regional Awards, Global Forum

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7 Cleantech Open Confidential Information – All Rights Reserved

Session 1: Markets and Getting to Them

1:30pm – 2:30pm, PDT

• 30 year technology industry veteran, having run global businesses based in USA and Asia

• With University of Phoenix for 30 years• Currently a practitioner Lead Faculty for Strategy in the School of

Business

Speaker: Niraj Kohli President, CSC

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Cleantech Open

Markets and Getting to Them

By Niraj Kohli - University of Phoenix

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Cleantech Open Webinar 3 – Markets and Getting to Them

KEYTRENDS

MARKETFORCES

MACRO-ECONOMIC

FORCES

Copyright © 2013 University of phoenix. All rights reserved. Reproduction in copies, distribution to others, preparation of modified or derivative works, or sublicensing others without express written consent of University Phoenix is prohibited.

University of Phoenix webinars include content from: businessmodelgeneration.com and from Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers [ISBN:  978-0-470-87641-1] by Alexander Osterwalder and Yves Pigneur, (hereafter referred to as the “Work”). Copyright © 2010 by Alexander Osterwalder and Yves Pigneur. All rights reserved. Used by arrangement with John Wiley & Sons, Inc.  Unless John Wiley and Sons, Inc.’s (“Publisher”) express prior written permission is obtained, it is prohibited to (a) remove or alter the author’s name, Publisher’s copyright notices, or other means of identification or disclaimers as they appear in the Work; (b) make electronic copies of the Work other than as permitted pursuant to Section 1.1 of Agreement between Publisher and Apollo Group, Inc. “(Apollo”); (c) mount or distribute any part of the Work on any electronic network (including without limitation, the Internet and the World Wide Web) other than the Sites; (d) use all or any part of the Work for the purposes of monetary reward by means of sale, resale, loan, transfer, hire, or other form of distribution of the Work; (e) distribute the whole or any part of the Work to anyone other than Authorized Registrants (as defined in the Agreement between  Publisher and Apollo; (f) publish, distribute, or make available the Work, works based on the Work or which combine it with any other material, other than on the Sites as expressly permitted in this Agreement between Publisher and Apollo.  

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This webinar is a 60-minute meeting presented as part of the Cleantech Open, which focuses specifically on the Markets and Getting to Them

Cleantech Open Webinar by University of Phoenix

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Agenda

o Value Creation from Factory to Field through AKA

15 minutes

o Mapping Customer Buying Process

10 minutes

o Market Size and Growth Rate – Near and Long Term along with Market Infrastructure Discovery

15 minutes

o Pilot Customer Development and Repeatable Sales Model

10 minutes

o Questions

10 minutes

Cleantech Open Webinar 3 – Markets and Getting to Them

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Cleantech Open Webinar 3 – Markets and Getting to Them

Markets and Getting to Them Worksheet and Judging Criteria

Worksheets• Customer Buying Process

o Current Solutions? o Purchase Decision Process?o Partners? Channels? Influencers?

• Market Size and Growth Rate – Near and Long Term

• Market Infrastructure Discoveryo Competitors, Alternative Solutionso Forces, Trends Affecting Growth

• Pilot Customer Development

• Repeatable Sales Model

Judging Criteria• Is the sequence of target markets and the path to them clear and defensible, and is the potential market large enough

for a successful startup to have a major environmental and economic impact?• Does the cumulative size of the target markets represent an attractive opportunity appropriate to the funding strategy?

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Value Creation through Markets and Getting to Them Focus on Factory to Field and Awareness, Knowledge and Action (AKA)

What is 50/30/20 rule?

Cleantech Open Webinar 3 – Markets and Getting to Them

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(VP)VALUE

PROPOSITIONS

(CH)CHANNELS

(CR)CUSTOMER

RELATIONSHIPS

(CS)CUSTOMER SEGMENTS

(R$) REVENUE STREAMS (C$) COST STRUCTURE

(KP)KEY

PARTNERSHIPS

(KR) KEY

RESOURCES

(KA) KEY

ACTIVITIES

Customer view – Front StageOperations view- Back Stage

Economics view – Business Performance Stage

businessmodelgeneration.com

Cleantech Open Webinar 3 – Markets and Getting to Them

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Value Propositions

Customer Segments

Cleantech Open Webinar 3 – Markets and Getting to Them

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Cleantech Open Webinar by University of Phoenix

Markets and Getting to Them

Mapping Customer Buying Process

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© Copyright 2013 EcoFactor. All Rights Reserved. Confidential

Inefficiency Throughout The Day, Everyday

slide #6

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© Copyright 2013 EcoFactor. All Rights Reserved. Confidential

Existing utility partner

Comcast coverage

Current Customers and Their Service Territory

• 530K customers• 6th largest municipal utility in the U.S.

2.4M total customers2.2M electricity customers

23M customers

Access to distribute EcoFactor services to

30M+ customers

1M customers in Texasslide #3

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© Copyright 2013 EcoFactor. All Rights Reserved. Confidential

• Customers announced:

• Revenue model• SaaS• Monthly service fees

• Ten (10) patents and issued, many more pending

• VC funded: $17M to date, founded in 2006

About EcoFactor

slide #2

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Cleantech Open Webinar 3: Markets and Getting to Them

Are there any questions?

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Cleantech Open Webinar by University of Phoenix

Markets and Getting to Them

Market Size and Growth Rate – Near and Long Term

Market Infrastructure Discovery

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Cleantech Open Webinar 3: Markets and Getting to Them

KEYTRENDS

MARKETFORCES

INDUSTRYFORCES

MACRO-ECONOMIC

FORCES

http://www.businessmodelgeneration.com/

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Cleantech Open Webinar 3: Markets and Getting to Them

Market Forces

MARKET SEGMENTS

NEEDS AND DEMANDS

MARKET ISSUES

SWITCHING COSTS

REVENUE ATTRACTIVENESS

MARKETFORCES

- Market Analysis -

http://www.businessmodelgeneration.com/

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Cleantech Open Webinar 3: Markets and Getting to Them

Economic Infrastructure

Describes the economic infrastructure of the market in which your business operates

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Cleantech Open Webinar 3: Markets and Getting to Them

Global Market Conditions

Example:

The Recovery Act

• The Recovery Act provides appropriations for projects and activities that are related to transitioning the economy to clean energy with a total investment of over $90 billion.

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Cleantech Open Webinar 3: Markets and Getting to Them

Industry Forces

SUPPLIERS AND OTHER VALUECHAIN ACTORS

STAKEHOLDERS

COMPETITORS(INCUMBENTS)

NEW ENTRANTS(INSURGENTS)

SUBSTITUE PRODUCTSAND SERVICES

INDUSTRYFORCES

- Competitive Analysis -

http://www.businessmodelgeneration.com/

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Cleantech Open Webinar 3: Markets and Getting to Them

Competitors (Incumbents)

Identifies incumbent competitors and their relative strengths

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Cleantech Open Webinar 3: Markets and Getting to Them

Competitors (Incumbents)

Questions to ask:

• Who are our competitors?

• Who are the dominant players in our particular sector?

• What are their competitive advantages or disadvantages?

• What are their main offers?

• Which customer segments are they focusing on?

• What is their cost structure?

• How much influence do they exert on our customer segments, revenue streams, and margins?

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Cleantech Open Webinar 3: Markets and Getting to Them

Competitors (New Entrants)

Identifies new, insurgent players and determines whether they compete with a business model different from yours

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Cleantech Open Webinar 3: Markets and Getting to Them

Substitute Products and Services

Describes potential substitutes for your offers, including those from other markets and industries

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Cleantech Open Webinar 3: Markets and Getting to Them

Substitute Products and Services

Questions to ask:

• Which products or services could replace ours?

• How much do they cost compared to ours?

• How easy is it for customers to switch to these substitutes?

• What business model tradition do these substitute products stem from (e.g., high-speed trains versus airplanes, mobile phones versus cameras, or Skype versus long-distance telephone companies)?

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Cleantech Open Webinar 3: Markets and Getting to Them

Suppliers and Other Value Chain Actors

Describes the key Supply and value chain incumbents (Physical and Electronic) in your market and spots new emerging players

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Cleantech Open Webinar 3: Markets and Getting to Them

Are there any questions?

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Cleantech Open Webinar by University of Phoenix

Markets and Getting to Them

Pilot Customer Development and Repeatable Sales Model

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Cleantech Open Webinar 3: Markets and Getting to Them

Pilot Customer Development

o Start with a Lead Customer in terms of Development

o Who are you targeting?

o What is the Segment?

o How do you plan to get there?

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Cleantech Open Webinar 3: Markets and Getting to Them

Repeatable Sales Model

o Direct – ecommerce, Personal Selling

o Indirect - Retail - Online (Amazon)

- Offline (Apps)

o Indirect – Distributors (Ownership of Product)

- Reps (Commission basis) though removed from the customer

o Component of bigger System - Private Labeling and let someone else sell

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Cleantech Open Webinar 3: Markets and Getting to Them

Repeatable Sales Model

o Key Factors that should guide your Go to Market Strategy

Deal Size / Product Margin

Percentage of Whole Product

Solution Complexity

Credibility and Brand

Local Knowledge

Time to Market

No of Target Customers

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Cleantech Open Webinar 3: Markets and Getting to Them

Markets and Getting to them

What is your plan?

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Cleantech Open Webinar 3: Markets and Getting to Them

Are there any questions?

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Session 1 Q&A

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Accelerating Your BusinessLive and Breathe the Worksheets

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43 Cleantech Open Confidential Information – All Rights Reserved

Worksheet Work – Week 7/23 - 7/30

• Business Model Canvas and Value Chain Diagram – continue working on this– Competitors / Competitive Advantage / Why You?

• Product/Market Fit – Continue Customer Interviews– Pre-revenue and post initial revenues

• Getting to Market – Define, characterize and size your Market– Identify first $1m Market– Validate your customer

• Product & Technology Validation or Path to Same – start validating through your customer discovery process

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44 Cleantech Open Confidential Information – All Rights Reserved

TEAM FOCUS FOR WEEK OF AUGUST 1

Prepare for Business Clinics

Address Product/Technology Validation Worksheet (Wiki)

Complete Product/Market Fit Worksheet (Wiki)

Complete Business Model Canvas and Worksheet (Wiki)

Complete Markets and Getting to Them Worksheet (Wiki)

Begin (or continue) to develop Financials Worksheet (Wiki)

Contact Your Mentor or Regional Mentor Chair With All Questions

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Session 2 will start at 2:45pm PDT3:45pm MDT, 4:45pm CDT, 5:45pm EDT

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46 Cleantech Open Confidential Information – All Rights Reserved

Session 2: Term Sheets

2:45pm – 4:00pm, PDT

Speaker: Julio E. VegaPartner, Bingham

Speaker: William S. PerkinsPartner, Bingham

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Term Sheet Fundamentals:

William S. Perkins, PartnerJulio E. Vega, Partner

CleanTech Open National AcademyJuly 23, 2013

A Play in Three Acts

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CAST & SETTINGEntrepreneur..................................................................Will Perkins

Will, an engineer by training, spent many years in the labs of a large technology company. He is now leading a group of his former work colleagues into a new clean-tech venture. Having spotted the growing interest in electric cars, Will and his team have developed a product that sits between the power source (i.e., home wall plug) and car charging port that speeds charge times by 30%-50% in early lab tests. SpeedyCharge needs $500,000 -- 750,000 to develop a prototype and place it with a local electric car club who have agreed to beta test it.

Angel Investor.................................................................Julio VegaJulio, a lawyer by training, now spends his time investing in early-stage growth companies as an angel and with his group of old friends functions almost as an angel fund.

SettingHaving been introduced by a mutual connection, Julio and Will are meeting for the first time at a local craft beer hall to review terms for an angel investment round led by Julio. Prior to this meeting, Julio and Will had a long “meeting” (WebEx) where Will walked Julio through his slide deck and business model for SpeedyCharge. Julio indicated a willingness to invest, but Julio wanted to meet will in person to negotiate out terms.

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ACT IThe Meeting

Will and Julio meet at The Beer Garden and jump right into their negotiation. Things quickly turn to valuation...

Key Terms*• LLC [__]• Corporation [__]• Founders [__]• Valuation [__]• Cap Table [__]• Pre-money [__]• Post-Money [__]• Convertible Notes [__]• Preferred Stock [__]

*Engineered for Term Bingo! Play along...

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ACT IIThe Meeting

With valuation and the structure/type of security set, Will and Julio turn to other terms and topics...

Key Terms• Option Pool [__]• Participating [__]• Dividends [__]• Anti-dilution [__]• Pre-emptive rights [__]• Blocking rights [__]• Protective provisions [__]• Vesting [__]

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ACT IIIThe Meeting

Things are wrapping up...

Key Terms• Board seat [__]• Observer [__]• Information [__]• Drafting [__]• Counsel [__]• ROFR [__]• Co-sale [__]• Drag [__]• Expenses [__]

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Term Sheet Fundamentals:What to worry about tomorrow

• Dividends (and when they matter)• Conversion• Anti-Dilution Protection• Redemption • Protective Provisions• Investor Rights/Covenants• Founder Stock• Exclusivity• Binding

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Other Resources

• The National Venture Capital Association’s “‘template’ set of model legal documents for venture capital investments” are available at:

http://www.nvca.org/index.php?option=com_content&view=article&id=108&Itemid=136

• The model documents, while instructive and prepared with helpful annotations, are no substitute for a thorough discussion/translation by your own counsel

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Bingham Offices

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What People are Saying about Us...Recognized by Chambers USA as having a “‘stellar’ corporate team” that produces “work of an ‘extremely high quality’” as well as noted for having “broad geographical client reach”

-Chambers USA

“Bingham McCutchen has long housed some impressive project finance experts, and the firm itself is now achieving more recognition, especially for its work in renewable and alternative energy.”

-Chambers USA

“Noted as one of the largest environmental groups in the country, “clients’ would recommend them without a doubt.”’ 

-Legal 500

2008 Deal of the Year by Project Finance Magazine

2010 Best Renewables Deal by Power Finance & Risk

2008 Americas Renewables Deal of the Year by Project Finance International

Nominated for Deal of the Decade by Infrastructure Journal

Noted as a Top Ten United States Cleantech Law Firm of 2011 by CleanTechies.com

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Representative CleanTech Clients

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Will Perkins

Will Perkins concentrates his practice on general corporate matters and licensing matters, with an emphasis on

strategic investments, mergers and acquisitions, structuring and financing new ventures, and public and private

offerings of securities, including representation of both financial and strategic buyers. He represents both public and

private companies, as well as private equity funds, in a wide range of transactions including venture capital

financings; in-licensing and out-licensing transactions; product manufacturing and distribution arrangements and

initial public offerings and follow-on public offerings of equity and debt securities. Julio VegaJulio Vega concentrates on corporate and securities law, with an emphasis on venture capital transactions, mergers

and acquisitions, public offerings such as IPOs, joint ventures, strategic alliances, and licensing transactions. He

represents emerging growth companies and established businesses in all areas of technology, including advanced

materials, biotechnology, e-commerce, nanotechnology, networking, software and telecommunications. Julio

regularly counsels startups on equity-based compensation matters, equity finance strategy, executive employment

arrangements, general business strategy and other general corporate issues. He has also represented venture

capital firms in connection with portfolio company investments.

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William S. Perkins

Partner

617-951-8574

[email protected]

Thank Youand

Good Luck!Julio Vega

Partner

617-951-8901

[email protected]

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Session 2 Q&A

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Reminders

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61 Cleantech Open Confidential Information – All Rights Reserved

Reminders

• Work on your worksheets – keep up each week, it will make it easier

• Complete webinar survey you will automatically receive from Webex – we want your feedback

• Next webinar is Tuesday, July 30th

– Check your Accelerator wiki http://wiki.cleantechopen.com/accelerator-wiki/2013-webinars/ for updates on webinars

– Session 1: Product & Technology Validation - 1:30pm to 2:30pm, PDT• Speaker: Niraj Kohli, President, CSC• Be sure to send in your top 3 expectations you have for the next

worksheet webinar. Link is in the July 30th Session 1 webinar– Session 2: Alternative Sources of Funding: Grants - 2:45pm-4:00pm, PDT

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