Disruptive innovation in cleantech is accelerating technological change. Exponential improvements in computing power, data storage, networking and other technologies are enabling disruption across trillion dollar markets like energy and transportation. This interdisciplinary renaissance is a perpetual driver of disruption, creating a virtuous cycle of opportunity for entrepreneurs to build new companies. Disruptions will continue lowering costs and improving performance of clean technologies like solar, batteries, LED lighting, and electric vehicles. Examples discussed include more efficient data centers and smart grids, molecular manufacturing, synthetic biology, and gene sequencing.

1. DISRUPTIVE INNOVATION IN CLEANTECH
DISRUPTIVE INNOVATION IN CLEANTECH
Steve Jurvetson, Managing Director
Nordic Green II
d
April 28, 2010

2. Topics
• A VC Perspective
• Disruptive Innovation &
i i i &
Accelerating Change
• Energy Market Intersection

3. DFJ Global Network
Deal Flow, Market Intelligence, Business Development, 150 Professionals

4. Topics
DISRUPTION

5. Evermore
Moore

6. Technology innovation continues to grow exponentially
Source: Ray Kurzweil
Logarithmic Plot
Molecular
Electronics
Year

7. Power Density Extrapolation

8. Global Network Effects Further Accelerating Change
Users
14
Millions
12
10
8
6
4
2
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Months from First Users

9. A Natural Experiment
Photo courtesy of Rebekka Guoleifsdottir

10. THEME: Switching Atoms for Bits
Digital Presence Tools Soar as Flights are Grounded
g g
 During the 5 days, Skype users made over 20 million more
g y , yp
video call minutes than normal
 The same time as 42,000 flights from London to NYC
 Over 12 billion Skype-to-Skype calls per month
 36% include Video
 50x more video minutes than YouTube uploads
Photo courtesy of Rebekka Guoleifsdottir

11. THEME: Switching Atoms for Bits
P2P versus Centralized Servers
• A search engine without servers or web crawlers
• Uses idle cycles in the cloud
• Compared to 30,000 servers
• 700K fewer lbs of CO2/dayy
• Like removing 35K cars from the road

12. DFJ Cleantech Portfolio
FUELS AND RESOURCE
GENERATION DISTRIBUTION STORAGE EFFICIENCY
CHEMICALS MANAGEMENT
• Solar • Smart Grid •Battery • Lighting •Biochemical • Water
• Wind • Meter Ultracapacitor
•Ultracapacitor • HVAC Thermochemical
•Thermochemical • Agriculture
• Hydro • Transmission •Fuel Cell • Transportation • Pesticides
• Geothermal • Bldg Materials • Waste
• Emissions

13. THEME: SMART GRID
Lowering capacity requirements and energy demand
g p y q gy
Where does all the water go?

14. EnerNOC Demand Response
Where does all the water go?
Supermarket 24 Hour Load Profile and EnerNOC Demand Response Application
400
350
EnerNOC
300 Remotely Curtails/
Generates
250
kW EnerNOC 20 kW from EnerNOC Restores
Automatically
Automatically Backup
Backup Automatically
A t ti ll
200
Communicates to Generator
All Stores
20 kW from
150
Store AC or
ISO Calls 7 Air Handler
Air Handler
Hour “Event”
100 30 kW from
Starting at
11:00 a.m. 1/3 Lights
50
0
12:00 am 2:00 am 4:00 am 6:00 am 8:00 am 10:00 am 12:00 pm 2:00 pm 4:00 pm 6:00 pm 8:00 pm 10:00 pm 12:00 am
Time of Day

15. THEME: EFFICIENCY
Data center efficiency
ff y
 Migrating from "Always On" to "Always Available"
R d
Reduces data center energy consumption by 50%
d t t ti b 50%
 Software can also adjust cooling systems to further reduce
Software can also adjust cooling systems to further reduce
energy consumption.

16. Customer Example: 57% Savings

17. THEME: EFFICIENCY
Data center

18. THEME: EFFICIENCY
Automated Continuous Commissioning
g
Where does all the water go?
 Cuts commercial annual energy spending by up to 25%
gy p g y p
 Ongoing process for monitoring systems and assets,
diagnosing and resolving issues and making energy
issues,
consumption as efficient as possible
 physical maintenance
 control strategies
 prioritizing and implementing retrofits

19. THEME: SMART GRID
Lowering capacity requirements and energy demand
g p y q gy
 Industry’s highest wireless networking performance and
code density into the lowest power-consuming chip set

20. THEME: SMART METERING
Technology leader in Power Line Communication (
gy (PLC)
)
 Chips cost a fraction of the cost of
current chips on the market and
show 3-4 times better
communications performance
 Miartech has relationships with
original device manufacturers who
g
account for over 50% of the
world’s utility meter production

21. THEME: LIGHTING
LEDs 1/10th the power; 50x the life
p ;
 Lighting consumes 24% of all electricity
g g y
 A total conversion to LEDs could save 20% of all electric
consumption and 1B tons of CO2 per year

22. THEME: EFFICIENCY
Efficiency
; y
Electric cars are 45% efficient; internal combustion 15%

23. Cumulative percentage of total electric use in the
U ted States
United States Efficiency y

24. Accelerating Change….not Just IT
 Computation
p
Dickerson’s Law: Known 3D
 Storage
Protein Structures
 Networking
 Evolution
 Proteins crystallized
 Imaging resolution
 Genes mapped
pp

25. Rapid Growth in Genes Sequenced

26. Gene Synthesis: Beating Moore’s Law

27. Dawn of New Era

28. Green, Clean Machine
A T Synthetic Chromosome
G C
DNA Synthesizer
y
Sunlight
Pharmaceuticals
Plant Biomass Biofuels
Chemicals
CO2
+90% of all Organic Chemicals come from
Petroleum and Natural Gas

29. Awakening giants

30. Design, engineer, evolve
Sugars 1,4‐Butanediol
(BDO)

31. Summary
Efficiency
y
• Accelerating Technological Change
Accelerating Technological Change
‐ Interdisciplinary Renaissance
Interdisciplinary Renaissance
‐ IT innervates trillion dollar markets
IT innervates trillion dollar markets
‐ Perpet al dri er of disr ption
Perpetual driver of disruption
 Virtuous cycle for entrepreneurs
 a great time to build new companies
i b ild i

32. Thank You
• Email: SJ@DFJ.com
• flickr: Jurvetson
• Old text blog: jurvetson.blogspot.com