Definition: Investment approach considering both social and financial returns.
Current Trend: Has moved from the periphery to mainstream.
Example: Increasing awareness and industry growth around impact investing.
Importance of Success Stories
Success stories help in reducing skepticism around the model.
Examples of Success:
Tesla
SolarCity
Pandora
Challenge: Some believe social dimension could compromise financial returns.
Role of Government in Cleantech
Key Points:
Government involvement is crucial but not unique to cleantech (e.g., FDA in life sciences).
Public attention on cleantech can be both beneficial (support) and challenging (political/media wars).
Government Financing:
Mixed views, but potential for positive outcomes.
Examples: Loans to Tesla, BrightSource's solar plant project.
Political origins influence public opinion.
Cleantech Investment Dynamics
Current Trends:
Reduction of U.S. government funding leading companies to look abroad, particularly to China.
Companies benefiting from China's national and regional funding.
Case Study: Powergenics battery company targeting China and Europe first due to demand.
Navigating Public and Private Sector Interfaces
DBL's Role:
Helping companies navigate and leverage government support as a stakeholder.
Examples of positive impacts:
Moving companies into economically targeted areas for tax benefits and job creation.
Urban revitalization through entrepreneurial activity.
Investment Decision-Making
Selection Criteria:
Ventures with potential for growth, not necessarily those without a social dimension.
Distinction between venture capital suitability and lifestyle/family businesses.
Encouraging management teams to uncover and integrate social dimensions in their businesses.
Real-World Impact and Unexpected Benefits
Case Study: Pandora
Community engagement by teaching music in schools lacking budgets.
Resulted in unexpected political support during royalty battles.
Emphasizes the unpredictable nature of value gained from community and multi-dimensional business approaches.
Conclusion
The value of engaging with the public sector and NGOs can manifest in unforeseen benefits, highlighting the importance of a comprehensive approach in DBL investing.