Building a Cleantech Ecosystem in Ethiopia

Kevin Randolph
Executive in Residence

Topics for Today

Who is LACI
What LACI has Accomplished
Why Incubate Companies
The Cleantech Business Opportunity
Radical innovation the Network for Global
Innovation (NGIN)
Discussion
The Ethiopian Sustainable Technologies Center of
Excellence -- A Framework for Developing a
Cleantech Ecosystem for Ethiopia
Discussion and Next Steps

LACI Overview
For Entrepreneurs
By Entrepreneurs

Fred Walti
CEO

LACI Basics

Formed by the City of Los Angeles in Oct. 2011

Mission: Build a world class innovation hub and

connect it to the world

Operate 3 incubators in SoCal, and have 3 under

development in the U.S., Mexico and Ethiopia

Building a network among innovation institutions called

the Network for Global Innovation (NGIN)

Sources of Funding: Government, Private Foundations,

Contract Services, Membership & Rent

LACI Basics

50+ companies through the program

22 paid FTE + 100 volunteers, interns, mentors

For
Entrepreneurs,
By
Entrepreneurs

more than a
theme

Portfolio Company Profile

Membership
Most between garage and Series A
Membership
Short term lease w/ rent (includes everything)
Monthly membership fee
Warrants

12% of Applicants Are Accepted Cleantech Only

Portfolio&ApplicantSectors
AdvancedManufacturing

Number
of Deals

AdvancedMaterials

% of
Deals

Agriculture&Food
BuiltEnvironment

Total Inquires

Chemistry

Applicant
DD

EnergyEfficiency
EnergyGeneration

Ac
ce
pt
ed

EnergyStorage
InformationTechnology

397 100%
264 66%
46 11.6%

Other
Recycling&Waste
Solar
Transportation&Mobility
Water&Wastewater
0

4
LACIPortfolio

10

12

14

Applied

Source: LACI Company Data as of: 6/22/2016

Pg 8

LACI Portfolio Performance by Sector

LACI OperatingStatistics
SectorName:
AdvManufacturing
AdvMaterials
Agriculture
Built Environment
Chemistry
EnergyEfficiency
EnergyGeneration
EnergyInfrastructure
EnergyStorage
Information Technology
Transportation
Waste
Water

LACI PortfolioTotal
LACI ActivePortfolioTotal

Active
Companies
2
1
3
4
1
4
2
0
3
8
4
1
3

Number
of deals
6
28
16
38
8
34
22
6
28
6
28
16
12

36
36

248
212

Capitalization
Revenue
Total Invested 2013-2016E
Capital
CAGR
$
2,490,000
47%
6,097,213
100%
4,114,700
124%
3,370,500
280%
613,013
-30%
4,263,000
39%
27,911,200
41%
6,520,000
NA
7,125,000
258%
1,275,000
NA
4,564,103
46%
2,448,317
-10%
3,910,500
72%

$
$

74,702,546
40,366,503

55%
99%

End to End Acceleration

Programming to fit each companys stage
1

Acceleration
Genesis
Customer Discovery
Entity Formation
Foundational Knowledge
Market Assessment
Business Model Creation Business Model Refinement
Investment
Identity Creation
(Grants, Friends & Family, Angels)
Executive Team
Beachhead Engagement
Recruiting

Incubation
Expansion
Growth
Business Model Iteration
Market Share in Existing
Business Process
Financial Projections / Planning
Markets
Optimization
Team Development
Expansion into Adjacent
Operational Efficiency
Solution Refinement
Products
Systems Development
Professional Investor Engagement Access to Working Capital Geographic Expansion
Repeatable Sales Engagement
Supply Chain Efficiency
Revenue Growth

10

LACI - Real World Start Up University

Weekly Executive Coaching
Gary Awad

EIR Intensive coaching and mentoring

1:6 ratio Weekly progress meetings
Quarterly business reviews

Specialist Staf

Colette Brooks
Laurie Luh
Bob Musselman
Tony Morberg
Bob Musselman

Financial Modeling
Investor Prep
Grants

Over 70 pro bono mentors & partners

Functional: Marketing, Accounting, Legal, Pitch
Prep, etc.
Technical: Design, Prototyping, Software
Development, etc.
11

Kevin Randolph
Rajan Kasetty
Amanda Sabicer
John Siegler
Ben Stapleton
Erik Steeb
Michael Swords
Jim Winett

LACI - Real World Start Up University

Programming & Tools
LACI Fundamentals

Intensive core training

In Person & Online
Investment Intensive
Business Model / Design
IP Strategy

CEO Spotlight Series

Monthly series In person & webinar

Company Showcases
2015 700+ demonstrations to customers

Investor Connect
175+ 1:1 investor sessions
Angels, VCs, Strategics

Rapidly up-levl our

12 companies sophistication

LACI - Real World Start Up University

Programming & Tools

LACI Fundamentals

Intensive core training

In Person & Online
Investment Intensive
Business Model / Design
IP Strategy

CEO Spotlight Series

Monthly series In person & webinar

Company Showcases
2015 700+ demonstrations to customers

Investor Connect
175+ 1:1 investor sessions
Angels, VCs, Strategics

Rapidly up-levl our

13

companies

Genesis to Creation of Value

101
Understanding your
Companys Business Model
Intro to Financial
Accounting
How to Forecast Sales
Budgeting, Business
Planning and How to Use a
Financial Model
The Venture Fundraising
Process
Developing a Fundraising
Strategy
Intro to Investor Landscape
Early Stage Funding
Financing Options
Deal Terms & What They
Mean to You as an
Entrepreneur
What am I Worth? Coming
up with a Valuation
Building a Negotiating
Strategy
Perfect Pitch
sophistication
Due
Diligence
Closing the Deal and

Cluster Activities

Convening events everyday (10X volume)

International, national, county, city government
Investment showcases
Leadership Council
Sector specific
clusters

14

LACI Portfolio Companies

The Los Angeles Experience

LACI incubation program has generated

jobs and $256M+ in long term economic
value in less than five years

Purpose Built Cleantech Campus

Unique end to end acceleration

Office, meeting, event space

Wet labs, electrical labs, computer labs
Prototyping and assembly space
Training facilities
Test and certification labs (LADWP)
New product exposition center

17

Recognition

18

New Companies =
New Jobs
ALL net new jobs (44M) created in the U.S. in the last three decades
came from companies < 5 yrs. old (White House)
19

Incubation is
a Proven Model

20

Incubation is a Proven Model

Efective
EDA found that incubators create 20X more jobs than community
infrastructure Grant Thorton/EDA 2009

Efficient
EDA found cost of new job $180 vs. $3,000/job for local
construction investments Grant Thorton/EDA 2009

Success Rate
87% of incubated companies still in business after 5 years NBIA

Retention
84% stay in the same area NBIA

The Cleantech
Business
Opportunity

Cleantech is broad-based

Cleantech
will touch
every aspect
of our lives,
much like
the PC,
Internet and
mobile
technology
revolutions

Energy generation and storage

Energy efficiency and demand response
Smart grid integration
Building and construction
Transportation and goods movement
Materials science
Agriculture
Water conservation and treatment
E-waste
Recycling
Environmental impact mitigation
23

Long term market growth is excellent

Cleantech
sector is
hard to
measure,
but

Wind growing 25% annually since 2006

Solar growing 39% annually since 2006
177 countries signed the U.N. Climate
Change Agreement
1 in 4 cleantech jobs are manufacturing

24

Huge opportunity for developing economies

25

Make a difference

26

Solving Climate Change..

Radical Innovation

27

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