C3 Energy is a smart grid analytics Software-as-a-Service (SaaS) solutions provider, founded in 2009 by Thomas Siebel. C3 Energy’s solutions enable customers to realize the full promise of their smart grid investments. The C3 Energy Analytics platform is unique in its ability to integrate massive amounts of disparate data, apply sophisticated multilayered analytics, and provide highly usable portals that generate actionable real-time insights. Its enterprise wide approach provides utilities with end-to-end system visibility across supply-side and demand-side smart grid operations. Comprised of utility and software industry experts, the management team and board of advisors bring a wealth of experience and industry connections to the company.

1. C3 ENERGY
COMPANY
ASSESSMENT
TEAM 1
Divyesh Kumar, Daniel Ryan, Priya Thyagarajan,
Pratik Mehta, Nalin Desphande
April 20, 2015

2. INTRODUCTION
• C3 Energy offers smart grid
analytics Software-as-a-Service
(SaaS) solutions
• Enterprise wide approach
provides utilities with end-to-
end system visibility across the
supply and demand side of
smart grid operations
• The core of its analytics solution
is its platform
o Integrates massive amounts of
disparate data
o Applies sophisticated multilayered
analytics
o Provides highly usable portals that
generate actionable real-time
insights

3. MANAGEMENT TEAM
• Management team has deep experience in developing and
managing companies, understanding of utility and software
industries, and expertise in law and environmental policy
o Thomas Siebel: Founder, Chairman, and Chief Executive of Siebel
Systems (large software company that merged with Oracle in 2006). A
billionaire, formerly revolutionized customer relationship management
(CRM)
o Ed Abbo: former Senior Vice President at Oracle, responsible for their
application and SaaS products
o Peter Eidelman: Served as Chief Financial Officer at a number of
companies and is a certified public accountant
o James Connaughton: Served as Executive Vice President at two large
utilities and was chairman of the White House Council on Environmental
Quality
o Pete McCarthy: Held various leadership positions at Silver Spring
Networks (smart grid hardware company)

4. CAPABILITY POSITION AND
UNCERTAINTIES
• Current Position
o Utility tested, market ready products (fully commercial)
o Intangible assets - patents, management team, industry
connections, and partnerships
• Major Uncertainties
o Dependency on energy infrastructure upgrades (e.g. T&D, AMI,
EMS)
o Dependent on systems integration partners such as Accenture
for support
o Utility desire for “complete package” product
o Target markets dependent on regulation and policies

5. VALUE CHAIN

6. POSITIONING FOR VALUE CAPTURE (PVC)
• Low (to moderate)
Dependencies
• Low (to moderate)
Leveragability
• Moderately difficult to
Replicate
• High Connectivity

7. COMPANY VALUATION
Top Down Valuation:
• Total of 8 VC rounds (through 2013) with total funding of $64M: 3 in 2009, 4 in 2010 and
1 in 2013
• IRR requirement of 40-70%
o Exit value after 8 years: $415M
o Exit value after 10 years: $1.1B
• IRR requirement of 20%
o Exit value after 8 years: $60M
o Exit value after 10 years: $90M
Bottom Up Valuation:
• Revenue at year 5: $60 million
• Years to Maximum Revenue: 15 years, Maximum Revenue: $308M
• Revenue at exit: 8 years $170M, 10 years $230M
• Proxy: Teradata used for COGS, SG&A, R&D, and EV/EBITDA margins
• Calculated EV for C3 Energy $312M

8. INVESTABILITY
• Low (to moderate)
Scalability
• Moderate Profitability
• High Capital Intensity
• High Diversification

9. CONCLUSIONS AND RECOMMENDATIONS
• C3 Energy is a well-funded and well-connected startup
• C3 Energy has high value capture potential
C3 Energy could increase value capture potential by:
• Partnering with energy infrastructure manufacturers to
capture value in other segments of value chain
o Smart Meters (AMI)
o Substation (SCADA)
o Transmission and Distribution
o Grid Operational Management (EMS and DMS)
• Increasing focus on B2C business model

10. THANK YOU!