Outline

 Overview of Mohr Davidow

 Financing path for Cleantech Innovations
 Today’s landscape
 What we’re looking for

1
Mohr Davidow at a glance

•  Founded
in
1983
28 Years of Early Stage •  Invested
in
more
than
275
companies

Venture Investing •  $2B
Under
Management

•  Currently
invesCng
from
MDV
Fund
IX


•  MulC‐disciplinary


Thesis led Strategy •  Deep
domain
experCse

•  Investment
advocates



•  Cleantech

Diversified Across •  Life
Sciences

Four Categories
 •  Enterprise
and
Infrastructure
IT

•  Web
and
Mobile
IT


Passionate
Commitment to • 
Culture
of
risk‐taking,
pioneering
new
areas

Innovation and • 
Hands‐on
company
builders

• 
InnovaCon
lies
at
core
of
venture
returns

Entrepreneurship
University and Research Affiliations

 
Electrical
Engineering
and
Computer





  
President’s
Circle
  
Leavey
School
of
Business


Science
  
InsCtute
of
Medicine
  
Center
for
InnovaCon
and
Entrepreneurship

 
Center
for
Law
and
Technology 

  Berkeley
Energy
Resources
CollaboraCve
 

 
Energy
InsCtute
at
Haas

 

 
Cleantech
to
Market 





 
Venture
Capital
Fund
 

 
Economics
Department
   School
of
Law




 
InformaCon
Sciences
and
Technology
 
 

 
Division
of
Biology
 
 

 
Trustee
 
 

 
Neuroscience
InsCtute

 
Precourt
InsCtute
for
Energy
Efficiency
   McCombs
School
of
Business

 
InsCtute
for
Economic
Policy
Research

 
InsCtute
for
Immunity,
TransplantaCon,
and






 
Medical
Center
ExecuCve
council
 InfecCous
Disease

 
Mission
bay
Capital
Fund
  

Business
AssociaCon
of
Stanford

 
Center
for
Personalized
Medicine
 Entrepreneurial
Students

FoundaCon
  

Technology
Ventures
Program

 
QB3
Industry
Advisory
Board
  

Economics
Department



 
   Center
for
GeneCcs
and
Genomics







  Advisory
Council

MDV Innovators Award

Recognize faculty taking entrepreneurial and innovative approaches

that have the potential to disrupt markets.

UC
Berkeley/LBL
 Stanford
University


Rachel
Segalman
 Jan
Liphardt
 Yi
Cui
 Michael
McGehee



 
 
 


Ali
Javey
 Delia
Milliron

MDV
Advisors
 Tom
Jaramillo
 Nick
Melosh


 
 
 




Paul
Alivisatos Sally
Benson
 Jay
Keasling
 Jeffrey
Koseff
 Paul
Wright



 4


Leading Cleantech Portfolio

Solar
 Fuels/Chemicals
 Mining/Materials
 Energy
Efficiency


Thin-film Solar Cellulosic Biofuels Coal Gasification

LED lighting

Solar Systems
Energy Storage
Engineered Chemicals
Fuel Cells – UAVs

Solar Development
BioChemicals 

Building Materials LED Lighting

5
Financing path for cleantech innovation

6
 Landscape: Venture financing

CT Venture capital
–  2010: $7.7B investment
–  2011 Q1:
•  record high $2.6B global
•  Increase 13% over Q1 2010
–  Increased capital per
deal

7
Landscape: Exits

Confidential 8
Challenges specific to university spin outs

Disclose
IP
to
 Patentability,

OTL
 FTO
 File
patents


Faculty,
 Characterize
 Design
 EsCmate


Research

 InvenCon
 features
 prototype
 cost

students


Market‐specific


Define
 Opportunity

applicaCon
 assessment
 Value

proposiCon


Validated,

protected


technology


Market

Funding
and

opportunity
 company

formaMon


Team


9
What we look for

Confidential 10
Evaluating Deals for Venture Investment

  Large, disruptable
MARKET
   Accessible channel for startup
  Diversified customer set
  Capability driven buyers

  Breakthroughs in science
and engineering
  Innovative business models
  Matched to market needs
  Disruptive & Defensible TEAM

  High margin   Tenacious
PRODUCT/
   Attract other great people
TECHNOLOGY
   Understand market forces and


technology

Market
Solu,ons
not
Technology
Pla5orms

11
Convergence of drivers for our CT investments

Enabling economics Technology innovation

•  Opportunity for •  Advances in materials

substitution science
•  Need for increased •  Diffusion of IT solutions
resource productivity

Combining
to
create
opportuni,es
for
alterna,ves
to


reach
cost‐parity
with
conven,onal
products.


Confidential 12
Investment Focus

Enabling economics +

Technology innovation

Alternative energy solutions

IntegraCon


Energy
 Energy

supply
 demand


Confidential
Investment Focus

Enabling economics +

Technology innovation

Alternative energy solutions

Storage




Solar
 Smart

Grid


Confidential 14
 Thank you!

KT Moortgat
ktm@mdv.com
http://www.mdv.com

Confidential 15
Current landscape

 Downstream financing:  Higher expectations

reopening but still risk pre-demo scale means
averse additional funds
 Partner for scale up  Team experience and
 Increasingly transparent access is key
government grants and  Don’t count on it for
policy success, but leverage
– LGP, ARPA-E, tax credits where you can
– CA RPS

16