NYC ACRE

The New York City Accelerator for a Clean and Renewable Economy;

an NYU-Poly i2e initiative

US Electric Power Industry Net Generation, 2008

Sources: U.S. Energy Information Administration, Form EIA-923, "Power Plant Operations Report.”

Mission

• Grow an ecosystem of entrepreneurs, innovative local startups and international companies

• Identify solutions to climate and energy issues in dense, urban environments

• Create jobs, wealth and revenue growth in NYC

• Leverage NYC demand, markets, and talent

• Provide opportunities for academic engagement

Business Support Services

• Coordination with market adopters + policymakers

• Streamlined access to incentives/programs

• Tech. design, development, deployment

• Subsidized faculty mentors and student interns

• Capital planning & financial operations

• Access to venture funding for growth

• Local network of experts & mentors

• ‘Virtual’ membership opportunities

Existing Partners

•NYSERDA

•NYCEDC

•NYC Investment Fund

•NYU

•Columbia University

•Pratt Institute

• Anchor a physical and virtual community of cleantech entrepreneurs at 160 Varick Street in downtown Manhattan and throughout NYC

•Build an ‘ecosystem’; tenants sharing space/knowledge, virtual tenants linked through intranet, connected to other partners in shared objectives

Strategy

Sectors of focus as defined by New York City Investment Fund

Alternative Energy & Power

Materials & Green Building

Transportation & Logistics

Air & Water Technologies

Distributed and renewable energy generation (e.g. fuel cells, geothermal wind, solar, biofuels, wave/tidal)

Materials recovery and recycling

Alternative-fueled vehicles (e.g. hybrid vehicles)

Water purification (e.g. water recycling, ultra-filtration systems and desalination equiptment)

Energy storage and power quality

Advanced and bio-based materials

Logistics (e.g. logistics software)

Water management (e.g. meters, sensors and automation systems)

Energy infrastructure and management systems (including related Internet and IT-based services)

Nanotechnology (I.e. precision manufacturing instruments)

Airquality (e.g. air testing equiptment and services, emission scrubbers)

Energy efficiency and transmission

Green buildings and sustainable design

•Data provided by Thomson Reuters; includes a sample of seed stage VC investments below $1mm 1/1/2004 to 6/18/2009. Total number of investments in the sample is 27.

Cleantech Sector

Total Number of Deals

Total Amount Invested (in millions)

Average Amount Invested

Median Amount Invested

Air & Water Technologies 7 4.10 0.58 0.5Alternative Energy & Power 15 8.50 0.57 0.55Materials & Green Building 3 1.84 0.61 0.56Transportation & Logistics 2 0.55 0.27 0.58

Historical Clean Tech Investment Breakdown (Seed Stage Only)

2004-2009:

Higher Returns - Less Cost

• U.S. Dept. of Commerce EDA Jan. 2009: “Incubators provide up to 20 times more jobs than community infrastructure projects (e.g., water and sewer) at a cost of $144 to $216 per job compared with $2,920 to $6,872 for the latter”

• 87% of all firms that graduated from NBIA member incubators in 90’s still in business

• 84% of graduates remained in community

Why does the incubator model work? (Making the most of available capital + minimizing

risk)

Tenant Selection Criteria & Metrics

• Credible technology & management team

• Relevant & attractive market

• Potential for sustainable competitive advantage

• Potential for growth, economic dev. + attractive exit opportunities (24 month residency)

• Eval. Metrics: Jobs, Funding ($>500k), IP, New products or services in the market

Current Tenant Portfolio

‘CleanTech Execs’ • NYSERDA: need for entrepreneurs +

early-stage clean energy“C-level execs”

• 25 “high-impact” individuals for first boot camp; Feb. - June

• Cleantech, energy markets, management-focused curriculum

• Link to NYC networking events/seminars with cleantech community

Seminars & OutreachPrevious Facilitations:•Convened two panels on buildings and energy use for Climate Week NYC (2009)•Organized year-long ‘Green Finance’ series with Manhattan Chamber of Commerce (2010)•Hosted energy infrastructure forum for State Dept. Iraq CRDF program (April 2010)

Future Partnership Opportunities:•Developing mini-conf. with USAEENYC; ‘innovations in energy: policy + tech.’•Organizing 2011 IEEE conference; ‘urban energy issues + smart grid’•Convening NYU-Poly ECE Forums with industry

P4LTS(Draft to be delivered 2011)

Revenue streams under consideration:

• Federal, state, city grant funding

• Fortune 100 sponsorship

• Tenant equity/convertible debt

• Sponsored event series + newsletter

‘Goal is to be cash flow positive, visible, and durable’

“America is the country of future. It is a country of beginnings, of projects, of vast

designs and expectations.”

- Ralph Waldo Emerson, 1844