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Will we see a flurry of energy venture capital & startup

Discussions about the economic and financial ramifications of PEAK OIL

Will we see a flurry of energy venture capital & startup

Unread postby SoothSayer » Sat 06 May 2006, 08:58:09

We already have a thread about the MIT plans to save us ....

More generally, do you think that the VC community will leap onto the Peak Oil bandwagon at some point?

Will VC become easier to obtain for energy related projects?

If yes, will the focus be on "supply increase" projects e.g. improved extraction techniques, Gas To Liquid systems etc?

Or will "energy optimisation" or "oil substitution" projects e.g. wind polar, solar power, efficient engines etc be the preferred route?

And how about private sector hydrogen fusion projects????
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Re: Will we see a flurry of energy venture capital & sta

Unread postby Jack » Sat 06 May 2006, 09:09:23

You'll see a proliferation of energy projects. VC will fund a great many projects, some of which will, in retrospect, seem utterly inane. One need look no further than the dot.com period - if one could say "internet", one could get investment money. It will be the same with energy of every sort.

You'll also see numberless scams. Perpetual energy schemes of every description. Of course there will be fusion projects, generally promulgated by obscure cranks of dubious reputation but filled with passion for their project. The public will dump their savings into the schemes, convinced that the latest character will make them rich and save the world, all at once.

That's part of the tragedy, you know. We'll squander our capital and resources in a doomed effort to avoid the inevitable, thus assuring a harder, more painful crash.
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Re: Will we see a flurry of energy venture capital & sta

Unread postby lorenzo » Sat 06 May 2006, 09:21:18

This is already happening. Just look at the bioenergy sector. Total investments have skyrocketed. A few months ago Bill Gates invested US$84 million in a biofuel company - just for fun. This market is exploding.

In the entire renewables industry, the bioenergy sector is growing fastest. That's because there's a variety of bioenergy technologies and processes that produce gas, liquid fuels and electricity cheaper than fossil fuels based gas, liquids and electricity.
This can't be said of any other alternative energy technology. Bioenergy is the sole real competitor of fossil fuels.
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Re: Will we see a flurry of energy venture capital & sta

Unread postby gg3 » Sun 07 May 2006, 02:16:49

Ahh yes, bioenergy. Also has the advantage of starting with "bio-", which is the other hot word these days. Undoubtedly there are plenty of valid projects to be pursued in that field, but the buzz (as in "gets you high") from the buzzword will also make it fertile ground for scams as well. The other thing is, Bill Gates can afford to go for high-risk plays, so don't assume his involvement in bioenergy makes it "safe."

Fusion, no. Fission, maybe, which IMHO would be a good thing, though ambitious as hell. Wind and solar, definitely yes because these are easier to do as an independent power producer (IPP) and can be done on smaller scales and expanded over time. I know of a wind venture that has some very good sites locked down and may still be seeking capital.

I'm going for the telecommuting/telework angle, but my entity/entities are at present privately-owned and not seeking to go public, though I suppose we could be persuaded.

Someone should write TheToecutter a blank check on a very large bank account to do the electric vehicles angle, he is a genius of high order. I know a few other eco-industrial geniuses who could do great things in the right context.

Generally, those who do well in energy investments are going to be those who set realistic goals and timeframes, and don't let themselves get seduced by appeals to greed. Anyone can throw together a heap of bull---- with an inflated bottom line and call it a business plan. On the other hand, people with inherently viable plans can also be persuaded by idiot partners to pump up the hyperbole level. It can be hard to tell one from the other. As with any investment in technology-based business, VCs and private investors seeking to evaluate plans for viability need to have science/engineering talent onboard.
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Re: Will we see a flurry of energy venture capital & sta

Unread postby Speed » Mon 08 May 2006, 00:59:41

Seems to be true.

I work for an ocean power startup company. We have been in development for about four years. We worked in stealth mode during that time but did follow the VC investing profiles - they did not look promising. Now that we have completed development and have gone public with our work we have been pleasantly surprised. VC from almost every continent have contacted us. That would not have happened a year ago.

I believe the message of a limited oil future and the opportnunities it offers is hitting home. VC that never considered alternative energy seem to be changing their minds every day.
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Re: Will we see a flurry of energy venture capital & sta

Unread postby gg3 » Mon 08 May 2006, 04:04:39

In this context, I suppose I should post something I wrote years ago as a satire on the dotcom/internet investment craze.

This is to the tune of the old Marshmallow Fluff "Fluffer-nutter" jingle, which can be heard here:

http://www.marshmallowfluff.com/pages/f ... utter.html

look on the left for Fluff Jingles, click on "Fluffernutter Theme." Remember the tune? Okay...


Oh you need Fluff! Fluff! Fluff!
to make a Netter-Fluffer
Internet Fluff!
and lots of graphic clutter!

First you spread-spread-spread
some jargon as a buffer
add Internet Fluff
and that's a Netter-Fluffer!

So enjoy-joy-joy,
until the times get tougher,
then sell your founder's stock
and go out and start a-nother!

(all rights reserved)
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