CleanStart Perspectives with New Energy Nexus

CleanStart Perspectives with New Energy Nexus

Join us as we chat with Denise Rushing, California Managing Director of New Energy Nexus about programs & support for cleantech startups.

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Our guest, Denise Rushing, is the New Energy Nexus California Managing Director. New Energy Nexus isa non-profit global organization that strives towards an abundant world with a 100% clean energy economy for 100% of the population in the shortest time possible. To achieve this goal, they support diverse clean energy entrepreneurs with funds, accelerators, and networks.

CleanStart Perspectives are short online conversations to connect the greater Sacramento clean tech entrepreneurship community and share insights, experiences, and outlooks. Join us as we welcome our featured guests to share their perspective on what entrepreneurs and innovators can do to thrive and grow.

Register and we’ll send you the Zoom login information prior to the meeting time.

CleanStart Perspectives are recorded through Zoom.

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LoanPal and AQUAOSO Join the Funding Bonanza

LoanPal and AQUAOSO Join the Funding Bonanza

We might exceed $2 billion in funds raised for our cleantech companies this year.  If so, this region would represent a significant fraction of all the money raised in cleantech deals in the US.  That would undoubtedly raise eyebrows.  

The first quarter has been great for 4 companies in raising money so far this year.  We have written about Origin getting $925 million in new investment, and Infinium raising an undisclosed but likely substantial amount.  Now Hayes Barnard and the team at LoanPal in Roseville have gotten $800+ million in private equity for their business financing of energy efficiency and solar on homes.  Hayes had created Paramount Solar in 2003 doing financing and installation.  He sold that business in 2013 to Solar City and the team stayed on for a while.  After the merger of Solar City with Tesla, the team apparently decided they had come up with a pretty good financing vehicle and recreated it in 2018 in LoanPal.  What they do is provide a platform to arrange for loans and then assemble them in packages that are sold off to investors, recycling the money back into more loans.  Over 12,000 sales professionals are using the platform so far.  Originally the focus was on clean energy loans but it looks like they are branching out into a wider range of conventional mortgage loans.  Since inception, they have provided $5.9 billion in loans to over 175,000 families nationwide, adding offices beyond their roots in Roseville.  You can read their press release here.  Also check out Mark Anderson’s article on them in the Sacramento Business Journal.

At the same time, AQUAOSO has raised a $2 million seed round.  That’s a huge proof point for Chris Peacock and his team who we profiled back in 2017.  It will likely be a springboard to much more. Like LoanPal, AQUAOSO also provides a software platform to users, in this case to assess more accurately and efficiently the water risk inherent in their businesses.  This is especially important for growers in applying for bank loans.  It is like providing the equivalent of a credit risk score for water risk.  It simplifies the loan decisions for banks, but also provides insights into how growers can reduce that risk.  With more volatility in precipitation year to year and a trend to drier conditions, it is easy to see how the AQUAOSO tool is getting attention.  Chris explains his product in a video you can watch here.

So the total disclosed from the Origin, LoanPal, and AQUAOSO financings is $1.727+ billion.  Infinium hasn’t revealed its number, but given the pace they have been on we are guessing they raised over $100 million.  It wouldn’t take that much more to bring the total over $2 billion, almost a ten-fold increase over the best year achieved previously in the region.  Just considering the first quarter alone, the known total is a really big deal.  One thing is sure now—we are on the map for investors looking for cleantech investments.  When we started CleanStart 16 years ago, this was one of the most important milestones we said would be needed to make us a recognized hub for cleantech activity in the US and the world.  Now the question is whether this pace continues.  

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, 

Moss AdamsPowerSoft.biz, Greenberg Traurig, Momentum,

College of Engineering & Computer Science at Sacramento State

Todos with Dick Flasck, Founder RAF Electronics

Todos with Dick Flasck, Founder RAF Electronics

Our guest Richard “Dick” Flask is the founder and CEO of RAF Electronics, a 2019 CALSEED awardee pioneering new technologies to dramatically improve directional lighting by using non-imaging optics to produce high technology lighting. Dick will discuss share how they have leveraged the resources in California to grow their business.

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CleanStart Sponsors

Weintraub | Tobin, EY, Stoel Rives,

Greenberg Traurig LLP, BlueTech Valley,

Buchalter, Moss Adams, PowerSoft.biz

College of Engineering & Computer Science

at Sacramento State

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Helios Altas Getting Ready to Move to Scale in Small Hydropower

Helios Altas Getting Ready to Move to Scale in Small Hydropower

Helios Altas is getting ready to go big. We have reported on them in the past and they continue to hit new milestones.  They are now getting ready to scale, looking at manufacturing around the country. We hope they stay here. They certainly have opportunities to install their equipment in the state.

Clean energy advocates are of two minds on whether hydro should be counted as “green”.  Large hydroelectric dams supplied by huge reservoirs have been controversial as creating too much collateral environmental damage–destroying fish and wildlife habitat, interfering with fish migrations, trapping nutrient-rich silt, among other things.  As a result, there has been a compromise to favor only “small” hydro as part of the qualified renewable resources used to meet the 100% renewable goal or to qualify for funding from multilateral sources like the World Bank. Further, the expressed preference is for sites either where dams already exist but have never installed power generation turbines, or which do not require big water impoundments (“run of the river” installations).   However, the smaller the installation, the more costly it is in terms of cost per kilowatt. His solution overcomes many of those concerns and has been deployed in a variety of environments around the world while in demonstration mode.  

Helios Altas, founded by Mike Carrol and headquartered in Roseville, has taken a very clever, low-cost approach to come up with a simple device for taking advantage of even the smallest water flows. HIs device has a very elegant simple water wheel that requires only a channel to direct flows underneath it.  The company’s flagship products, PowerBall and PowerWheel produce clean electricity from moving water in canals, industrial water loops, rivers, tidal flows and the base of dams. They have been prototyping, deploying and confirming it is efficient enough to work in many circumstances. With this success, they are looking to move towards manufacturing and scaling to deploy the devices in California, where they already are used to power remote monitoring equipment, and in the rest of the world where they could power village microgrids.  They see applications to bring power to 900 million people in remote areas that currently do not have power. They have a great video explaining their device and its applications at the bottom of their home page.

Mike has had success in getting small irrigation districts and public power districts in the state interested and is working toward some substantial PPA agreements in the Philippines and Malaysia.  He has 1 kW and 2.5 kW units operating in demos and intends to produce units up to 10 kW in size. He believes he will soon see orders for 300 units. That would open up about two dozen new jobs to assemble and install the units.  

Helios Altas is one of the many companies in our region that have been working steadily and patiently for years to commercialize their innovations.  Now they seem ready to make a break-out move that will solidify their success for the future.

Thomas Hall

ABOUT THE AUTHOR

Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.

Sponsors

SMUD
CMC
RiverCity Bank

Weintraub | Tobin, Revrnt, Moss Adams, PowerSoft.biz, Greenberg Traurig