GREEN MYOPIA
The lack of understanding applies not just to the layperson who unquestioningly
consumes limited resources but also to the scientists, academics, businesspeople
and policy makers who study them for a living.
For better or for worse, the world’s cities are growing in both popularity and
population. In 1900, only 13 percent (approximately 220 million) of the world’s
population lived in urban environments. By 2030, it is expected that 60 percent of
the world’s population, or nearly five billion people, will live in cities, putting an
overwhelming strain on the already overburdened resource infrastructure.
“People are flocking into the cities because of better job prospects and the
promise of a more exciting life,” says Chee Kiong Goh, Director of Cleantech at the Singapore
Economic Development Board. “To many of them, it doesn’t matter even if the cities are
overcrowded and polluted…they’re coming. So we need to address urbanization
tribulation.”
Shortly to sum up- the grave issue of resource availability meltdown, calls for
saving energy not just as an individual
but together to upgrade the resource
infrastructure that seems to appear in PARADOX OF VALUE
the check lists of many.
Energy project’s conceptualized in congruence to address the same, must intend
to provoke new ways of thinking and the working of promising start ups- with the
go green concept in conjunction with passive venture investors is what can arouse
a new business scenario.
For a species that prides itself on scientific discovery, startlingly knows least about the
prospective availability of a resource that is most crucial to our survival:
WATER
As species, we have survived knowing very little about our water systems. We have
always known where to find it and how to use it, but we never gained an intimate
understanding of how to preserve it or sustain these systems.
In many parts of the world, water is free. There may be costs associated with
procuring, distributing and treating it. But the resource itself—arguably the most
important resource on the planet—has no price. This contradiction is known by
economists as the paradox of value, in which the usefulness of a commodity has
no bearing on its exchange value.
“A lot of investors tell me they want to invest in water,” says Rod Parsley, a partner at
Perella Weinberg Partners, a New York-based financial services firm. “I tell them, ‘Okay, open up the
paper and tell me where it’s trading at today.’ There is no market for water. And
yet it is the world’s most important commodity.”

ARGUMENT
:
The question of
whether water is
a basic human
right or a
commodity in
need of a market
is not easily
answered.
It is a debate
that is highly
political and
emotionally
charged.
Many believe
that water is the
same as food, a
staple of life
whose price
should be
controlled by
market forces.
Others believe
water is like air:
abundant, open
to abuse and free
‘ The truth is: Water is somewhere to all.
between the two—free but costly—
as much to cost lives if continued to abuse.’

One example of this is the “free water” that has been provided to villages across
India. Experts point out that though the water is free, there are many opportunity
costs associated with its procurement. Villagers can spend half a day traveling to a
standpipe, waiting in line, and
transporting the water back to
their homes. Some of them AWAITING EXPLORATION
need to do this every day.
That’s why many believe that without an accurate and fair pricing model to provide
a monetary incentive for infrastructure build and efficiency of use, the issues of
wastefulness, pollution and scarcity would never be mitigated.
“The cheaper water is, the more we’ll use,” says David Zetland, an economist at the University
of California, Berkeley. “But if we raise the price to where people start paying attention,
individuals, farmers and businesses will quickly realize that the more water they
use, the less profit they get from it.”
The fact that water is not a CONSTRAINT
commodity or a product; is only a
part of the reason- that it is a
tricky investment. Water is treated as if it is ubiquitous; it is often grossly
undervalued. All of which means that the products and services that procure,
process and supply water have yet to establish the kind of market that energizes
investors and attracts capital.
“We need a Google of water,” says Thomas Schulze, Chief Executive Officer of Cleantech Europe, a
Munich-based venture capital firm. “We are still looking for that outstanding innovator that
brands and defines the sector and market.”
Despite this shortcoming, there are exciting technologies and opportunities
emerging in water. Desalination, rainwater catchment and treatment, and industrial
reuse are enjoying a boom presently. But the technologies used in these
applications are all designed to increase supply- An undeniably important part of the
argument.

Far more promising, both socially and economically, is the less-developed market
for technology largely decreases the demand.
If we plan to create a market for water and add a cost to it: (From the Marketing point of view)
Companies that have decided to go green. But this widespread practice presents
two inherent problems when it comes to going green.
First, as the environmental culture permeates all walks of life, it becomes nearly
impossible to find and define a “green” target demographic group. The once small
cluster of “environmentalists” is now part of a larger population, falling over into a
wide range of age groups as well as educational and socioeconomic levels.
However they are now a highly informed, savvy niche segment that needs little, if
any, marketing to draw them to greener products and services. The remaining
green market is so vast that there is no actual green target demographic group.
The other problem that has arisen for marketers is that “the environment” is a
very broad term, encompassing greenhouse effects, global warming, disappearing
rain forests, sustainability, renewable energy, air and water pollution, and much
more. While the vast majority of the buying public is certainly concerned about most
if not all of these areas, they are as a group overwhelmed. In fact, while a number
of surveys show that 70 percent to 75 percent of buyers will choose greener
products if they are available, only 15 percent of those buyers truly consider
themselves knowledgeable about most environmental issues.

LIVE EXAMPLES
• VASALLO’S NEGALITRE
“We take a slightly different approach to investing in water, something we call
demand-side investing,” says Steve Vassallo, Principal at Foundation Capital, a California based venture
capital firm. “We look at using information technology, overlaid on our existing
infrastructure, to help commercial and industrial customers save energy and use
less water.”
Vassallo believes that by making water systems smarter, for both domestic and
industrial use, investors can make money and save water. This can be
accomplished through careful metering and a regulatory environment that rewards
conservation (similar to carbon trading or net metering for electric utilities). In the
Atlanta, Vassallo introduced the idea of the “negaliter,” which, like the
“negawatt,” would be a hypothetical, tradable unit of saved water.
“When you make an investment in the demand side, you improve the baseline for
the next generation of infrastructure,” says Vassallo. “It’s the same with energy.
You don’t rip out your more efficient boiler when the price of oil goes back down
below $40 a barrel. And we love that permanence you get from demand-side
management.”
• COLA WATER
“Virtually every business has a water imperative,” says Rod Parsley, a partner at Perella
Weinberg Partners, a New York-based financial services firm. Some are convinced that soon all public
companies will be required to disclose water efficiency in their annual reports.
Consequently, most companies have begun to look more closely at their corporate
water footprint. But perhaps none has looked closer than the Coca-Cola Company.
To say that Coca-Cola is sensitive to water issues is an understatement. The
company uses about 300 billion liters of water a year, only 40 percent of which is
contained in actual beverage products. It is headquartered in Atlanta, Georgia, an
area of the United States with several water issues. And it is a member of nearly
every foundation and nonprofit organization charged with reducing water use and
improving water conditions around the world.
For years, The Coca-Cola Company has been in the vanguard of industrial use
water. The company has squeezed every drop of water from its manufacturing
processes. It harvests rainwater from the roofs of many of its plants for no potable
use. It scrutinizes the sources of its water for products, analyzing the impact on
local environments and populations. And now it is embarking on perhaps the most
difficult of water management
challenges: managing water throughout its lengthy supply chain.
Coca-Cola is working with the WWF to reduce the water used to produce the
sugar, coffee and citrus contained in its products. Sugar cane is a particularly
thirsty crop, requiring 12 months and 1 million liters of water to produce 12.5 tons of
cane. So the first step is working with the WWF and a nonprofit group called The
Better Sugarcane Initiative to establish standards, evaluate suppliers and set goals
for the procurement of sugar.
“To support our society and economy, we have to extract water from the
environment, which has an impact on people and nature,” says Jamie Pittock, Research

Associateat the WWF. “But we should do that transparently, and make explicit judgments
about the economic production and the social benefits.

Is Niche Green the Answer? (Marketing theory that could be applied!!!)
The new green marketing, particularly for small business owners, needs to focus on
the same marketing principles that draw customers to buy your products or
services now. That remains your core demographic group. They are not necessarily
“green” per se but will include that same 70 percent to 75 percent of green-
minded customers. It is therefore up to you to find the common denominator that
puts “green” into their world.
Green marketing to a niche audience means not only meeting consumers on
common ground but educating them in the benefits of buying green as it pertains to
their lifestyles. It is at this point you may be able to extend your marketing into other
peripheral products and services
again through specific green
benefits that pertain to your target INDUSTRY AND WATER
market. Green marketing to a
niche audience is becoming more effective than trying to teach the car buyer about
the rain forests.
Every business has a different relationship with water. Some use it to process raw
materials and manufacture goods. Some use it to cool or clean equipment. And
some use it as a central ingredient in the product they sell.
The argument above intends at the possible attachment of a cost to water. This
cost at a minimal level would enable water to be be a valued consumption.
Industries, small organizations and individuals would thereby estimate their
consumption and wastage ratio.
Moreover the value theory shall be a conjoint to the economic theory that states
the paradoxical Elasticity of Demand- that however priced a commodity- it being a basic
need and inability for an alternative commodity to replace the original shall not have
any effect on the consumption.
That means water could be made available at a nominal cost that would not effect
its comsumption; as water is the most important source of life for all living
creatures.
Requoting:
“The cheaper water is, the more we’ll use,” says David Zetland, an economist at the University
of California, Berkeley. “But if we raise the price to where people start paying attention,
individuals, farmers and businesses will quickly realize that the more water they
use, the less profit they get from it.”

Apart from Water; green grows greener in many other fields.
• Venture capitalists today look far and wide for start-ups
Like many toiled in the Green Realization, Trevor Loy — a former Intel manager and
Stanford University-trained engineer — pursued the digital road not taken.
Nearly a decade ago, he moved to the New Mexico desert to co-found a small
venture-capital firm called Flywheel Ventures. His aim: to find the next generation of
start-ups where few others were looking.
Tapping into the wealth of technology talent and research in the region surrounding
the Sandia and Los Alamos federal research labs, Flywheel Ventures has invested
$34 million in 19 companies in solar, bio fuel and other sectors. Most of the start-
ups were "born global," Loy says, with U.S. and overseas offices, employees and
customers.

One promising find off the beaten tech track: Miox, an Albuquerque firm that makes
water-disinfectant generators that use salt and electricity, not potentially
dangerous chlorine gas. Miox — which just received $19 million in funding from
DCM, Sierra Ventures and Flywheel Ventures — has water-treatment installations in
30 countries.
"Venture capital has matured and reached critical mass in some markets, and now
we're seeing explosive growth and opportunities elsewhere."
The nearly half-century-old U.S. venture industry appears to be entering a new era
— what some call Venture Capital 2.0. Powerful forces, from economic globalization
to weak markets for initial public offerings and acquisitions, are sweeping the
industry and causing much soul-searching. To grow and survive, venture firms
large and small are hunting for new global entrepreneurs and markets, and for
fresh investment sectors such as clean technology and alternative energy.
Some venture capitalists believe that their traditional industry model needs shaking
up. Over the decades where many venture firms have poured hundreds of billions
of dollars into thousands of young tech firms. Most died or failed to grow, while
others — Intel, Apple, Amazon.com, Google — grew into business giants.
Since the dot-com boom and its 2001 bust, venture investment returns in the USA
have dwindle. Too many venture firms and too much capital are chasing too few
prized start-ups, many say.
Venture capitalists, he says, "need home runs such as Google and eBay to reach
their financial goals, but there are not enough high-potential ventures to satisfy the
large numbers of VC funds."
Venture investors focus narrowly on short-term investments and what they believe
to be the Next Big Thing, contends Tom Simpson, founder of Northwest Venture
Associates in Seattle.
The debate comes at a tough time for venture firms, as the usual "exit strategies"
for venture-backed young companies have dried up in the USA.
As the economic slump drags on, venture firms are more closely scrutinizing their
investments, funding only meaner-and-leaner start-ups.
“ May be likewise a business proposal for water savage could be enjoying venture capitalists
funding.”
• Venture Capital: 'Eco-friendly' cups that cut heat, waste
Ever burn your hand on a cup of coffee?

A Puget Sound-area startup by the name of Micro Green Polymers is seeking to
alleviate that problem for millions of Americans with a new insulated coffee cup that
it says is more durable and heat-resistant than what you'd find at the corner
espresso stand. Better yet, the Arlington company says the cup can be produced
entirely from recycled soda-pop bottles and will cost about the same as traditional
paper coffee cups.
That's an idea that should resonate with eco-friendly Seattleites who can't do
without their morning jolt of java. And it could interest companies such as
Starbucks, which just this month started rolling out new cups that contain 10
percent recycled paper.
The concept of an eco-friendly coffee cup that conducts less heat intrigued Hayden
Smith at the Green Bean Coffee House, a non-profit that serves up organic coffee
in Seattle's Greenwood neighborhood.
"It is a great idea," said Smith, adding that her shop would be interested in using the
cups in place of "double cupping" hot beverages or using the "java jackets" that are
routinely put around paper cups. "It is definitely an area where waste happens and
could be improved on."
MicroGreen's coffee cups, plates, trays and other dish ware are still more than a
year away from commercial deployment. But the 4-year-old startup -- which has
licensed a thermoformed plastic technique from the University of Washington --
recently scored $2.4 million in financing from WRF Capital and local angel investors
to develop a wide range of food packaging materials.
The money -- the first major outside investment in the company -- will be used to
develop formal prototypes. It will also go to a new manufacturing line that's under
construction in Arlington.
"We need to prove not just to investors but to partners and customers that this
technology is scalable, and we can produce at industrial speeds," MicroGreen co-
founder Krishna Nadella said. "That's a very critical aspect."
Though still in the development stages, Nadella is confident that Micro Green can
produce coffee cups that are 15 percent to 20 percent cheaper than others on the
market.
“ Positing your idea matters.”
• Investors Green with Envy of Eco-Friendly Start-Ups?
Could it be that finally investors are starting to see green in green? .
Venture Capitalists have to channel money to entrepreneurs who see the world
through green-colored glasses. The area which seems "hottest" at the moment is
energy-any technologies which can be described as "sustainable", "renewable" or
"clean."
Recognizing an opportunity, several years ago a group of investors formed
Cleantech Venture Network. The Network provides a forum where eco-friendly
start-ups can get their business plans in front of the firm´s investors, whether it be
through one of their three annual forums or by submitting the plan on the Network´s
web site. The Network is holding a forum in London in June and New York City in
September.
One company which is making a splash in the sustainable energy industry is
Virginia-based Verdant Power. The company has designed free-flow turbines which

can be placed at the bottom of a river beds to take advantage of the energy being
spun out of river currents. This summer the company will submerge six of its
turbines in Manhattan´s East River. Working like underwater windmills, the turbines
will draw energy from tidal current to power a nearby supermarket and parking
garage.
Verdant received some of its capital from Investors´ Circle. With offices in San
Francisco and Brookline, Mass., the firm funds entrepreneurs focused on
sustainable biodiversity, whether it be clean energies, organic agriculture or
sustainable forestry. Additionally, it has an emphasis on funding minority or women-
owed companies.
Another interesting company which has received funding from the Investors´ Circle
is Brooklyn-based IceStone, which manufactures durable surface material like
countertops or commercial flooring from recycled glass and cement.
Investors Circle also serves as a fund of funds for firms which focus on
sustainability investing, such as Expansion Capital Partners, based in San Francisco
and New York, and SJF Ventures of Durham and Philadelphia.
“ Inspiration for those young entrepreneurs”

References:
A global innovation outlook report
allbusiness adscript
March 2009, National Environmental Education Foundation
4P’s Business and Marketing.