PEM Motion Has Big Plans for Base in Sacramento

PEM Motion Has Big Plans for Base in Sacramento

How many proposed battery manufacturing plants are operating, under construction or in late planning stages in the US and Europe?  Christoph Lienemann, Managing Director of PEM Motion North America, provided the answer with his first slide at our Perspectives podcast on March 24:  36 in Europe and 20 in North America.  Those are much larger numbers than most people realize.  Is it a sign of a coming overcapacity situation?  Christoph said it depends on how fast the sales in EVs grow.  He can foresee cases where in fact there are not enough battery manufacturing plants to meet demand. Right now there have been 3.2 million EVs sold in Europe compared to 2 million in the US.  The potential exists for the US to be the larger market over time and outpace Europe.  If that happened, overcapacity may not be the problem.  

Why is PEM here in Sacramento?  From its base in Aachen, Germany, PEM has established itself as a creative leader in Europe in engineering of unique mobility products and their production expanding to industrial scale, with an impressive slate of partners.  PEM sees similar opportunities in North America and has chosen Sacramento as its future base to locate its team to provide manufacturing engineering and setting up “ramp-up” factory pilots to work out the details on scaling mobility products to industrial levels. It intends as it has in Europe to focus on niche products in motor sports, personal mobility products like scooters, and delivery vehicles.  It has already signed a partnership agreement with CityFreighter in Irvine, CA, to advance its line of electric delivery vans based on a low skateboard-like chassis.  It also offers similar expertise in setting up industrial scale manufacturing plants for innovative battery systems. 

PEM sees Sacramento as well-situated between growing production centers in the Bay Area, LA and Arizona in area where they can attract talent from our local universities and take advantage of some low-cost space.  In July 2021, PEM entered into a partnership with the California Mobility Center (CMC) supported by Sac State and SMUD to take the first steps of its larger plan.  Mark Doerfer has moved from Germany to here to serve as the COO of PEM Motion USA and the Director of Technology for the CMC.  

According to its website, ”the California Mobility Center (CMC) orchestrates commercially meaningful interactions between future mobility early-stage companies and industry-leading members.”  It has already signed up an impressive list of partners and supporters to create these kinds of meaningful collaborations. 

We recently attended the first Open House showcase of the CMC and saw the products with which they were already involved.  You can find out more about that in our blog here. 

To learn more about PEM Motion and its California Initiative, Christoph’s entire presentation and the Q&A session which followed is below.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStart’s 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

CleanTech Meetup Returns to in Person

CleanTech Meetup Returns to in Person

After 757 days with 100 virtual events CleanStart returned to in person networking with the CleanTech Meetup at the Hacker Lab on March 24th. It was exciting to see new faces and old ones.  We were joined by Kriztina Palone, Workforce Development Manager at City of Sacramento’s Office of Innovation and Economic Development, who helped in bringing together an exciting new tool in our efforts to connect the community to the Clean Tech Transition, the Cleantech Connect trailer.  

CleanTech Connect Trailer

CleanStarts out reach trailer, Cleantech Connect

 

 

 

We started this trailer back in 2020 before, well, everything. Now, with help from the CMC, BlueTech Valley, and the City of Sacramento, we have a trailer to help connect the larger community to the energy transition and inspire new entrepreneurs building the region as a clean tech hub. The trailer is a mobile event station, with Solar, Batteries, PAs, and TVs to help educate people on clean tech and entrepreneurship. Attendees loved the trailer we describe as our own little Nano Grid.

After networking, Kriztina Palone joined CleanStart’s Executive Director Thomas Hall for a bar stool discussion about how the city is leveraging funds and community groups to prepare Sacramentens for future careers. Palone is leading a second round of “Clean + Green Workforce Pathways Discussions” with industry leaders, local companies, and stakeholders to get input on what priorities the city should support. Palone shared how they are bringing together businesses and communities in a shared goal in taking advantage of the energy transition to create jobs and support equitable economic development. It is not just a policy goal for Palone but a personal one, wanting to see the region she grew up in thrive and grow.

A big opportunity discussed was bringing groups together to create a community energy project. Palone highlighted being from Del Paso she would love to see local communities benefit and grow. A community Energy Project could coordinate resources to get larger community and economic returns.  We encourage companies to engage with Palone and the City so we can build these projects. 

If you want to hear more check out the video below, and make sure you subscribe to attend future meetups.

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

More Companies Turning to Crowdfunding

More Companies Turning to Crowdfunding

Last year we highlighted Wind Harvest Energy launching an equity crowdfunding campaign. They were successful. This year we have another regional company launching Area 13 eBikes, from the Bolton E Bikes team. Now we are getting more inquiries about this option. We are seeing more growth in the amounts raised year on year. I want to highlight some of the benefits of equity crowdfunding and what has changed.

The biggest change in Equity Crowdfunding is how the rest of the investment community and law firms see it. When we first asked people about it, we were warned it was complicated and would reduce future opportunities. This turned out to be true, but like all new innovations, people got better at it. SEC rules have gotten better, and the limit has been raised on the amount of money that can be gathered through crowdfunding. The downside of having a thousand small investors as a barrier to later stage investments has been mitigated by legal structures putting all the small investors into one vehicle which owns the shares in the funded company. The idea is to deal with the small investors as a group rather than individually. This makes later stage investors more understanding. 

Equity crowdfunding has enabled companies to break into public capital sources typically only available to those with the right networks. Historically, 80% of VC money was invested in just 5 metro areas. Compare this with numbers from Startup Engine, 42% went to the same 5 metros.There still are things you need to consider when choosing how to raise funds, but more and more early-stage companies are fundraising through crowd equity to reduce the geographic disadvantages of traditional fundraising. 

What can Equity Crowdfunding bring you?

With crowdfunding you can approach a wider audience who may better connect with your solution because they are the end user. Like Bolton E Bikes with thousands of YouTube followers and a large following online they can leverage that belief in their product into investment. Equity crowdfunding gives companies control to use exposure, create brand ambassadors, and build sales channels in parallel with continual fundraising.

How tough is it? 

For a technical founder, this fundraising involves more social media and marketing. That probably isn’t any closer to their skill set than public speaking and pitching for investment. Companies need to have a good plan and team to execute If your equity crowdfunding campaign is successful, you still have investors to be held accountable to and you need a team (Including quality legal and accounting support) to guide you. If a company cannot build a balanced team they are still going to struggle. 

Traditional fundraising through partnerships and VC brings new networks, validation, potential for additional funding and experience. They become a valuable part of your team. If you are struggling, they may be more understanding and willing to provide additional resources and capital. 

What makes a company successful?

I don’t know. Honestly, I would never have expected companies with B2B solutions, who will never make a consumer product, to have success with Crowdfunding. It might be more about companies taking advantage of market conditions. Crowdfunding is still pretty new, and in that time the market has been hot and, until this year, hasn’t faced a sustained downturn. Crowdfunding will never be a panacea, but it appears to be a viable option if a company can bring together the right team.

One important thing to remember is there are many legal and accounting parts of fundraising, so don’t go it alone. CleanStart is supported by GreenbergTraurig Law, Weintraub Tobin Law, and Moss Adams Accounting. Reach out to them for help. Also, connect with us. We have developed a network of people we can connect you to. 

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

CleanStart Perspectives with Legend Power Systems

CleanStart Perspectives with Legend Power Systems

Join us as we chat with Mike Cioce about optimal business performance through Active Power Management with Legend Power Systems.

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Our guest, Mike Cioce, VP Sales and Marketing at Legend Power Systems. We’ll discuss Legend Power® Systems ‘ onsite Active Power Management technology. The SmartGATE™ is an intelligent power management platform that analyzes and auto-corrects common building power quality challenges thus enhancing energy efficiency and mitigating financial waste while increasing occupant safety and satisfaction.

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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CleanTech Showcase 2022

CleanTech Showcase 2022

INNOVATIONS TO DRIVE CARBON-FREE POWER

Join industry experts and startups as we explore and showcase the innovations in our region that will drive our carbon-free power future.
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During this free half-day event, the showcase will feature and spotlight startups, innovators, and industry experts through talks and panels exploring the need for a carbon-free future, opportunities, the current state of climate tech, utility supply and customer demand.

Date: April 12, 2022, 9:00am – 12:00pm

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