In recent years, the revolutionary opportunities in the energy sector have attracted billions of dollars from early stage venture investors. But the venture world has learned some hard lessons on the difficulty of building energy businesses: they face science risk, often take a long time to scale and can be capital intensive.
While the overall appetite for venture-backed energy suppliers has cooled, we believe there are abundant opportunities for entrepreneurs to innovate on the ‘demand-side’ of energy markets. We are seeing a wave of new energy companies developing technologies focused on energy efficiency. Alas, most of these companies fall short when it comes to bridging that crucial gap between technical innovation and customer adoption. Similar to the trend toward consumerization of IT, we believe the companies that are poised to explode and redefine the energy tech landscape are the ones that are putting the consumer in the driver’s seat. Their value goes beyond the promise of energy efficiency, to deliver products and services that delight users, make them accessible through innovative business models, and understand the mindset of the energy consumer.Continue Reading