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When written in Chinese, the word “crisis” is composed of two characters - one represents danger and the other represents opportunity.  While I won’t try to put a positive spin on the economic turmoil that we face today, I will say that there is something to gain by seeking the positive. Without losing sight of that light at the end of the tunnel, we can alter our course temporarily while we wait for the storm to pass.

For some (including a number of my friends who have been laid off), this means applying to graduate school and “skipping out” as wage-earners altogether for a few years.  For others, it means delving deep into their creative and entrepreneurial spirits and seeking innovation at a time when nothing seems harder to do. There are many options to consider when presented with a roadblock, but the point is that the worst thing you can do is throw your hands up in despair and quit, for that could mean missing out on a golden opportunity.

It’s hard to believe, but the current $17 billion global drywall industry faced a supply shortage ten years ago as a result of the 1998 “building boom”. Building projects were stalled for months, new home construction stopped mid-way through production, and many families were left homeless. Yet, drywall factories were still running at capacity.

In this situation, the demand for drywall was directly related to the strong economy and consumer confidence. It also meant that drywall manufacturers were elated because they could sell 100% of their production, and the scarcity of the product meant that they could charge premium prices. As a consequence, it made economic sense for drywall companies to import the product from overseas instead of producing in the US. Shortly thereafter, the residential housing market collapsed, and an under-supply situation turned into an over-supply practically overnight–volumes and prices went into freefall.  Now, in 2009, the drywall market is the worst it has ever been.

This catastrophe within the building materials industry was an incentive for change. With oversupply in the local market and prices at an all-time low, it didn’t make sense to keep importing drywall. Instead of packing up and going home, people like Rod MacGregor, CEO of Antenna client CleanBoard, identified one segment of the market that was still growing: green building materials.  The drywall shortage gave way to expansion within this industry, and advancements in green/sustainable building materials market were born out of this disaster. According to McGraw-Hill Construction, green construction will grow from $12 billion in 2008 to $60 billion in 2010.  That’s the type of growth that the PC saw in the 80s and the Internet saw in the 90s.

Another popular Chinese saying is “be not afraid of going slowly; be afraid only of standing still.” While many markets are tumultuous right now, it’s worth remembering that there are numerous examples of technology and innovations that were developed in the face of hardship. Turning a crisis into an opportunity isn’t just a good idea, its good business.

AMI, AMR, demand-response, MDM, HAN, interoperability, scalability…if one left DistribuTECH 2009 in San Diego with anything, it was a better understanding and appreciation of  just how complex and intricate smart grid solutions can be—especially in today’s early stages.

A perfect illustration of this was the breakfast keynote, “The Smart Grid From A to Z: The Nation’s First Smart Grid City.” The brave moderator Teresa Hansen (Editor in Chief of Utility/ T&D Automation Engineering) handled no less than eight panelists with the skill of a rancher herding cattle. Companies like Xcel Energy, SmartSynch, and Gridpoint shared their work plugging in Boulder, Colorado with an AMI or advanced metering infrastructure. Of Boulder’s homes, 50 percent are now wirelessly equipped with automated meter reading (AMR).

Deals, deals, deals!

Perhaps because of the recent economic slowdown (and many canceled flights due to snow storms and ice) it seemed there were fewer people than normal at the event, but that only served to concentrate the quality of the crowd. The $4.5 billion for smart grid technology in the Federal Stimulus package had utility companies swarming the exhibit hall searching for how they would spend their 50 percent matching grants.  Traditionally, utility companies are slow adopters of new technology, preferring to take a wait and see attitude. Spending on average has been approximately $1 billion on smart grid technology annually, but since the stimulus money must be spent before 2010, there was definitely an step-up in pace and a keen sense of “getting deals done” in the air.

Removed from the flurry of exhibitors, chatter in the conference halls focused more on the actual language of stimulus package. As of this writing, it denotes the $4.5 billion to be used only for technology that is based on IP languages and open networks. Silver Spring Networks (of which Al Gore is a board member) has been lobbying aggressively in congress for the adoption of this language.

But others in the industry such as Landis+Gyr and Elster, as well as a third of the utilities, say today’s vendors use technology with proprietary networks and such language could preclude a large number of promising companies from benefiting from the stimulus bill. The technology thus far has been based on proprietary networks, so change will come hard. However, a vote on the bill isn’t expected for a few more weeks, so experts say there’s still time to iron out this delicate phrasing.

It seems clear that smart grid technology has a strong future. Demand for electricity is only expected to rise and if we can bring some sensibility to just how we use electrical power, perhaps the better off we and the planet will be.

This week, some of San Francisco’s Internet and CleanTech community amassed at Amante in North Beach to strengthen ties and share insight into what 2009 holds.

CleanTech professionals, journalists, and investors share drinks and talk shop.

Marty McMahon and Anna Binder share their take on CleanTech with GreenTech Media's John Keough.

Paul Hsaio of New Enterprise Associates talks information technology and energy with Kevin Matthews of National Strategies.

CMEA Capital's Risha Band talks investments with Matt Horton of @ Ventures and Ed Beardsworth of Energy Technology Advisors.

Not a day goes by that we are not reminded of the economic recession plaguing businesses. Recently, the Silicon Valley Venture Capital Confidence Index reached its fifth consecutive quarterly low. In the last quarter of 2008, it dropped to 2.77 out of a five-point scale.

Wall Street Journal 1/28/2009

“The macroeconomic conditions have become so dire that it’s tough environment to operate in,” says Mark Cannice, executive director of the University of San Francisco Entrepreneurship Program, who compiled the report.

The Index measures and reports the opinions of professional venture capitalists in their estimation of the high-growth venture entrepreneurial environment in the San Francisco Bay Area over the next 6 - 18 months.

Presenting to Venture Capital firms is always tough, but recent events are making this crucial step to getting your business off the ground even more pivotal.

Any man who afflicts the human race with ideas must be prepared to see them misunderstood.
–Henry Louis Mencken, American Journalist (1880 - 1956)

No matter how exciting and important your new idea may be, if you can’t help others understand it they won’t invest their time or money.  Here are some initial guidelines. Above all, be mindful of your audience’s experience, and let go of your love affair with the minutiae of your plan.

1. Prioritize and streamline your thinking. VCs are really, really smart. Chances are they will have looked at many similar plans before you walk in their door. They may feel impatient, even insulted, if you dwell too long on the basics. Frame the issues succinctly then quickly move on to your solution. Listen to your listener.

2. Prioritize and streamline your data. You want the VC to get the picture quickly, not be struggling to make out tiny numbers on your spreadsheet. Slow down when presenting detailed data and projections. Check to make sure graphs and tables can be easily read on your portable from five feet away, a guideline that assures effective projection to most screens. As technical insurance, carry a copy of your presentation on a memory stick, and a spare battery.

3. Keep it visually simple. Don’t use a busy background or distracting special effects. Exclude anything that does not add value and increase meaning. Avoid even a single extraneous word or image! Make the fonts larger than look right to you on your computer. Light-colored text on a dark background must be boldface. Use capital letters sparely and appropriately. Check grammar and spelling, so as not to distract your audience from your real message with minor annoyances. The first time you introduce an abbreviation or acronym be sure to speak and/or define the entire term.

4. Assume you will have one hour maximum with the partner. Arrive 10 minutes early to get your preso set up. Discipline yourself to get through your basic presentation in half an hour, even with questions along the way. This way there will be time for the partner(s) to simply engage with you and make the story their own.

5. Do your homework and make the choice easy.  If you’ve researched their portfolio and have a rationale for why their company is a good fit, they will be more interested. Are there parallels with their experience? They will like the deal best if they feel they can add some value and thus have a competitive edge.

6. Turn your audience into your advocate. Your first goal is for the VC to remember this first meeting so positively and clearly that he bothers to pitch you with some enthusiasm in the weekly practice/partners meeting. Only if your story (without you) passes will you get to the next stage.

7. Utilize your new advocate. If you make it to the next meeting, it will be with a larger group for a longer time and they will drill down much harder on your facts. Make your advocate look great. Soliciting his guidance also increases his investment in you winning. The many factors at work include whether your advocate has sufficient political clout within the group. Of course, you don’t know whether the group is actually actively investing or just keeping busy scouting. Knowing how to pick which VCs to approach is another topic altogether.

8. Survive Due Diligence. If you make it past that meeting, they will engage someone to perform due diligence. That choice is pivotal. If there are things about your idea or business plan that may not stand up to these pressures, fix them before the first big meeting.

9. Negotiate. If you make it past DD, then it’s all about negotiating the deal. Antenna does not participate in that process, so it’s crucial to have a good attorney on board at that point.

It’s great to be part of the solution.

As jobs disappear, the economy contracts and the climate continues to warm, Antenna’s renewable energy and clean technology clients are consistently recognized for bucking the trend.

Governor Perdue speaks to the Georgia Legislature in his State of the State address.

This week, Georgia Governor Sonny Perdue recognized Antenna client Suniva in his annual State of the State address.  Suniva recently opened its first solar cell manufacturing facility in Georgia, and plans to create over 100 local manufacturing jobs in 2009 alone.

Governor Perdue highlighted Suniva as part of the state’s successful effort to attract renewable energy companies, stating, “(Georgia’s) efforts have been rewarded with $2.4 billion of investment over the last two years.  That investment means new jobs for Georgians. In November, Norcross-based Suniva, birthed right here in one of our research universities, began fabricating the most advanced solar technology in the world.”

Governor Perdue tours Suniva’s solar cell factory in December 2008 and speaks at its opening ceremony.

John Baumstark, CEO of Suniva, in a statement following the address said, “We were honored to be recognized in the Governor’s speech as a stand out in the renewable energy sector, bringing new technology and industry to Georgia.”

John Baumstark atop the Georgia Tech Aquatic Center in Atlanta.

Baumstark added, “With the help of sound economic policies from the Governor, we plan to build upon our many early successes and continue creating jobs here in Georgia in 2009 and beyond.”

It’s that sentimental time of year again – the holidays are the natural time to take stock and be grateful for all of the good in life and appreciate those who bring joy to the world.

Cleantech, an industry that is not only experiencing growth, but also one that creates a win-win situation for seemingly long-time rivals – big business and the environment, has much to express gratitude for.

Cleantech is particularly grateful for:

* The priority environmental well-being has taken: from business decisions to government policy, investment choices to consumer behavior.

* All the ingenious and hard-working scientists, technologists and visionaries who without their superior skills, innovative spirit and undying determination, the technologies that could shape our future might have remained a passing scribble on a scrap of paper.

* Investors and entrepreneurs, perhaps the most important group in shaping the cleantech industry, taking innovative ideas out of the labs and turning them into the promising companies of the future.

* The US government, which rejoined the global renewable energy movement with the extension of the renewable energy ITC (Investment Tax Credit). This gave renewables, and especially the solar industry, a policy framework from which to build business models and plan future projects.

* The rising, fluctuating and generally unstable energy prices that expose how vulnerable the US is as it continues to remain dependent on fossil fuels rather than properly utilizing its abundant domestic renewable energy resources.

* Everyday people implementing energy efficiency in their homes and lifestyles.  This has caused a drop in home energy use, in some areas of the US, for the first time in 40 years.

* Influential thought leaders like Al Gore (and yes, even surprising allies like T. Boone Pickens) and cleantech advocates who generate awareness of climate change’s devastating consequences and inspire those who have the power to mitigate those negative impacts.

* And most importantly, Mother Earth for her mysterious beauty, munificent hospitality and endless solutions to all of humankind’s wants and needs.

Out in the blogosphere, Antenna Group client ExRo Technologies recently hit the big time. On November 19, 2008 fellow from Templeton who goes by the name of MeditatedThought  saw ExRo’s Variable Input Electrical Generator, or VIEG, profiled in MIT Tech Review and thought it worthy of a digg.

VIEG: ExRo’s Variable Input Electrical Generator

The VIEG is a generator designed specifically for the renewable energy sector,  that in lab simulations has shown the potential to increase turbine efficiency by double-digit margins.

Antenna Group client Barry Cinnamon, CEO of Akeena Solar, represented the Silicon Valley Leadership Group in its support of the Bay Area building the nation’s first network of charging stations for the electric vehicle. The initiative received a $1 Billion investment from the Palo Alto based company, Better Place, which has built similar charging networks in Israel, Denmark and Australia.

San Francisco Mayor Newsom speaking at the Silicon Valley Leadership Group.

San Francisco Mayor Newsom says even though he drives a hybrid, he feels it doesn’t go far enough (he’s currently on the waiting list for a Tesla), and San Francisco should do what it can to help all area residents overcome the hurdles of electric vehicle ownership. Left from the podium, Newsom is joined by Shai Aggasi, CEO of Better Place Bay Area, California State Senator Mark Leno, Akeena CEO Barry Cinnamon and Jim Wunderman, President and Chief Executive Officer, Bay Area Council.

Akeena Solar CEO Barry Cinnamon shakes hands with noted environmentalist Robert F. Kennedy Jr.

Akeena Solar CEO Barry Cinnamon spoke on behalf of the Silicon Valley Business Leadership Group at the press conference. Driving up from his company’s headquarters in Los Gatos, Cinnamon said he enjoyed seeing the plethora of roof-mounted photovoltaic systems on homes (more than 66 percent of the state’s solar systems are on homes in Northern California). According to the SVLG, the investment from Better Place could allow Silicon Valley to distinguish itself as an innovation hub for electric vehicles.

America’s big three automakers were on Capital Hill recently, attempting to gain support for a Federal bailout of their struggling companies. They say because of their dire financial circumstances, they are cutting back on the development of more fuel-efficient cars. General Motors has delayed the development of its Saturn Vue, a gas-electric hybrid, and Chrysler is halting production of its “well-reviewed” Dodge Durango and Chrysler Aspen hybrids for the next few months. Plus, it’s closing the Delaware plant where they are built.