vencon management, inc. 1 investing in hydrogen and fuel cell technology financing the hydrogen...
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Vencon Management, Inc.
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Investing in Hydrogen and Fuel Cell Technology
FINANCING THE HYDROGEN ECONOMY
AND FUEL CELL INDUSTRY
Long Beach, CA
Wednesday, May 5, 2010
Presented by: Irvin Barash, President, Vencon, New York
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• Global Economic Externalities affecting Hydrogen and Fuel Cells
• Specialty Economic Growth Opportunities
• Types of Technologies of Interest to the Commercial Markets
PRESENTATION TOPICS
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Global Economic Externalities affecting Hydrogen and Fuel Cells
Global Economic Externalities affecting Hydrogen and Fuel Cells
TOPIC 1
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Financing the Hydrogen Economy Relates to the Story Being Told in Simple Terms...
…And the Name is a Major Element…
…the name, Hydrogen Economy, is perplexing to many…Is Hydrogen a source of currency??…Is
the world a Silicon Economy?
WHAT IS THE HYDROGEN ECONOMY???
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•A 1940’s movie- - Jimmy Stewart wanted to leave banking for solar energy…it was a dream then, but didn’t catch on.
•A 1940’s talkie, Charlie Chaplin poo-pooed an investment in “Pacific Ocean Power” an ocean energy tech.
•A major problem is that investors are confused- -DON’T CONFUSE INVESTORS
WHAT IS THE “LABELING” OF THE INDUSTRY, ALSO CALLED GREENTECH AND CLEANTECH
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•Alternative Energy has been around for centuries…that’s what is confusing.
•What is the investor/public to understand regarding hydrogen and fuel cells, even energy storage is a different
category
•To attract the substantial investment needed, the Hydrogen Economy must have the alluring “spin”, for one.
ACTUALLY, IT HAS….
HYDROGEN AND FUEL CELL BUSINESSES SHOULD BE ONE OF THE LEADING GROWTH AREAS IN THIS DECADE
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World Wide Security related markets facing major adjustment to terrorism
Global Market Growth for ElectricityReduction of oil importsGlobal climate changeFossil Fuels Depletion
Power Generation Dislocations
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•Attracting Substantial Private Equity Investors to Existing and New Hydrogen Related Businesses...
…Despite the many Developmental and Infrastructure Issues reflective of a Growing Industry.
•Worldwide about 4000 organizations are involved in fuel cells, hydrogen energy and related technology
FINANCING HYDROGEN AND FUEL CELLS COMPANIES REGARDS...
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Specialty Economic Growth Opportunities
Specialty Economic Growth Opportunities
TOPIC 2
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•BECAUSE IT IS THE RISK CAPITAL FOR THE SUCCESS OF EMERGING COMPANIES
•EQUITY CAPITAL IS THE BACKBONE NEEDED FOR BANK LOANS TO BE AVAILABLE
•PRIVATE EQUITY REGARDS FINANCIAL AND CORPORATE INVESTORS
•GOVERNMENT INVESTMENT IS HELPFUL
GROWTH OPPORTUNITIES RELATE TO INVESTOR INTEREST
WHAT DO INVESTORS LOOK FOR?
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RETURN ON INVESTMENTSUPERIOR MANAGEMENT
POPULAR INDUSTRY STORYLARGE MARKETS
NEAR TERM PROFITABILITY,
LESS IMPORTANT
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2001 2002 2003 2004 2005 2006 2007
1 2 3 4 5 6 7
Begin Partial Stage Complete End Complete
Renewable Energy ModelTECHNOLOGY VENTURES GROWTH STAGES
VENTURE STAGE DESCRIPTION
STAGE 0:IDEA/CONCEPT
STAGE 1:R&D
STAGE 2: INITIAL MARKETING PLAN
STAGE 3: FORMATION OF COMPANY
STAGE 4:BUSINESS TEAM AND PLAN
STAGE 5:MARKETING DEVELOPMENT/PARTNERING
STAGE 6:COMMERCIALIZA- TION
1/01
11/04
9/04
11/04
PRE-SEED STAGE
.
Patents Bench Scale
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Business Plan
SEEDSTAGE
DEVELOPENT STAGE:PRE-COMMERCIAL
VENTURE STAGES, Vital to Understand
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STAGES OF VENTURE GROWTH
STAGE 0:: IDEA/CONCEPTSTAGE 1: R&D ALSO REFERRED TO AS PRE-SEEDSTAGE 2: INITIAL MARKETING STAGE 3: COMPANY FORMATIONSTAGE 4: BUSINESS TEAM AND PLANSTAGE 5: MARKETING DEVELOPMENT/PARTNERING STAGE 6: COMMERCIALIZATION
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Opportunities- - “convergence” wave as the industry grows.Combine companies which serve the same market, and
access a common customer base. Many companies are one product businesses without the
proper management, well thought out strategies and vision to be successful as the dynamics of the industry change.
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STRATEGIES FOR ATTRACTING INVESTORS
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Consider Acquisitions to add other ProductsUndertake Strategic Partnering
Access the billions of customers in developing nations.
Should the Hydrogen Economy be called a different name?
STRATEGIES
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POSSIBLE BENEFITS FOR PRIVATE/CORPORATE INVESTORS
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Types of Technologies of Interest to the Commercial Markets
Types of Technologies of Interest to the Commercial Markets
TOPIC 3
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Hydrogen Production
(including membranes, catalysts, coal based)
Photolytic Water SplittingRenewable ElectrolysisBiological and Biobased
Ultra-High-Temp. Thermalochemical
Systems (Solar)Distributed Reforming
OPPORTUNITIES
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Hydrogen Storage
Physical Storage
Metal Hydrides
Carbon-Based Materials
Chemical Hydrogen Storage
Novels Materials & Concepts
OPPORTUNITIES
Hydrogen DeliveryLiquefaction
Pipelines
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USE EXAMPLE FINANCING
TECHNOLOGY Biofuel/Hydrogen PRIVATE EQUITY
PRODUCTION Centralized CONVENTIONAL
DELIVERY Centralized CONVENTIONAL
STORAGE Centralized PE/ CONVENTIONAL
CONVERSION Fuel Cells PE/ CONVENTIONAL
FINANCING TECHNOLOGY TYPES
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SUMMARY: LARGEST ECONOMIC TRANSFORMATION EVER
NEW TECHNOLOGY REPLACEMENT
RAILROAD HORSES
GASOLINE ENGINE ELECTRIC VEHICLES
ELECTRIC L IGHT GASLIGHT
TELEPHONE TELEGRAPH
RADIO/MOVIES/TV TEA ROOM STORIES
AIRPLANE SHIP TRANSPORT PLUS
SEMICONDUCTORS SLIDE RULE PLUS
RENEWABLE ENERGY NO REPLACEMENT
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CONCLUSIONS
New Government/ Industrial Corporation NeededMore Entrepreneurs
Private Equity Outreach, as Financing Conferences
Enhanced Strategic Partnering
Enhanced Support for Trade Organizations
Rename segments not based on products or technology, but on markets/applications
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GERMANY: PUBLIC/PRIVATE PARTNERSHIP