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Fast money and fast movers. These are the phrases that come to mind when entrepreneurs talk about venture capital as a potential source of funding. But what if the flow of funds slowed down…way down?
The Next Generation of Sustainable Capital
The Investors’ Circle spring conference attempted to answer that question during a lively breakout session entitled “Slow Money: New Strategies for Investing in Local Food Systems.” Attended by reps from next generation investors such as SJF Ventures, Transformative Capital, and Renewal Partners, the conference blended a business pitch competition, philosophical discussions, an entrepreneur showcase, and community education in an effort to jump start the transition to a sustainable economy. Ecopreneurist writers were out in full force at the conference, with Leah Edwards blogging the “Is Organic the Next Clean Tech?” breakout session and joining in the networking events.
Slow Money: New Strategies for Investing in Local Food Systems
As part of the larger Slow Movement sweeping the cultures of food, travel, cities, and schools, Slow Money proponents seek investments and returns at the pace of sustainable business development. Slow Money panelist Greg Steltenpohl, former CEO of Odwalla and self-confessed “fast money sinner testifying before you,” advocated for the creation of new metaphors for economic growth. In the Slow Money movement, organic phrases replace academic terminology and new financial vehicles arise to form the “compost of the slow money economy.” Investors’ Circle chairman Woody Tasch expressed this transition as a study in contrasts between old and new ways of thinking:
Editor’s note: On Monday, Ecopreneurist’s lead writer Leah Edwards published this post on approaching venture capital firms with a cleantech business concept (with guidance from a member of one of the most influential VC firms in the world, Khosla Ventures). We figured a few of you out there are bouncing around business ideas, and might find this information useful, so we wanted to bring it to your attention.
First of all, don’t worry about the business plan.
I realize that sounds like crazy advice coming from a business consultant. However, I have seen too many entrepreneurs stalled or stressed when trying to write up a business plan when the plan really is not the critical issue. Many green business ventures that would be of interest to VC firms are in the cleantech, new materials, information technology, and life science spaces. If you are an ecopreneur with an idea in areas like these, your most important task is to explain the technology or science behind your idea and whether you have, or can get, the rights to the intellectual property.
Don’t spend your valuable time wordsmithing a long document. Just be able to say:
- why your idea works
- how it is different from an existing technology or product, or what is being developed by others
- how it will change the world, e.g., by dramatically changing a market or supply chain or by creating a new market or standards for how a market operates, etc.
This is not just my humble opinion. I spoke with Khosla Ventures’ newest operating partner Ford Tamer who explained that the firm is looking for leapfrog innovation—new technologies or new business models that can increase the size of a market by five-times or can drive costs down so significantly that entire new markets become available. He says, “We’re interested in ideas that can significantly affect the earth and can build big companies… We have no problem taking the risk if the risk is worth taking—for a huge benefit to society and the ability to be a major player.”
By Leah Edwards •
March 10, 2008
First of all, don’t worry about the business plan.
I realize that sounds like crazy advice coming from a business consultant. However, I have seen too many entrepreneurs stalled or stressed when trying to write up a business plan when the plan really is not the critical issue. Many green business ventures that would be of interest to VC firms are in the cleantech, new materials, information technology, and life science spaces. If you are an ecopreneur with an idea in areas like these, your most important task is to explain the technology or science behind your idea and whether you have, or can get, the rights to the intellectual property.
Don’t spend your valuable time wordsmithing a long document. Just be able to say:
- why your idea works
- how it is different from an existing technology or product, or what is being developed by others
- how it will change the world, e.g., by dramatically changing a market or supply chain or by creating a new market or standards for how a market operates, etc.
This is not just my humble opinion. I spoke with Khosla Ventures’ newest operating partner Ford Tamer who explained that the firm is looking for leapfrog innovation—new technologies or new business models that can increase the size of a market by five-times or can drive costs down so significantly that entire new markets become available. He says, “We’re interested in ideas that can significantly affect the earth and can build big companies… We have no problem taking the risk if the risk is worth taking—for a huge benefit to society and the ability to be a major player.”
By Leah Edwards •
February 4, 2008
As Joshua S. Hill wrote in our sisterblog Planetsave.com, on January 31, 2008, over 1500 universities and other organizations across the country participated in an all day teach-in about global warming solutions. Under the title “Focus the Nation”, each participating organization held a wide variety of trade-show-like fairs, panel discussions, public debates, presentation of research, and tours of buildings either built with sustainable materials or gardens planted with drought resistant plans, and much more.
I attended a pane
l at UC Davis’s “Focus the Nation” program called, “Innovation: Commercializing Science In Energy & Efficiency’. UC Davis has strong programs in many science disciplines, and there is a desire among university players and local politicians to have Davis, California (and some of the greater Sacramento area) be known as a cleantech center. I was interested to hear about what is actually being done to support green entrepreneurs.
