3 ms·

Kleiner bets the farm - firm is going green and leaving Internet deals to the competition.

7 points by nickb 18y ago

rms 18y ago
This is Al Gore's fault.
nickb 18y ago
Other than betting on cap & trade gov subsidies, I wonder how they plan to exit these positions...
- nostrademons 18y ago
  I think that Doerr may be betting that if he throws enough money at enough different startups, one of them is likely to come up with something that is economically competitive with fossil fuels, and can replace it over the long term. The worldwide oil market is in the trillions; it's not like there's a lack of money to be had. It's basically a high-stakes gamble with other people's money. If he wins, he goes down in history as the man (well, the guy behind the man) who saved the planet and ushered in the solar era. If he loses, his reputation is toast, as his clients' money. I'd give you about 10:1 odds that he loses, but considering the payoffs to himself, Kleiner, his clients, and mankind as a whole, I'm glad he's taking that bet.
  - michaelneale 18y ago
    Its a ballsy move, I think its great. Death or Glory ! (if Death means you retire in shame, comfortably retire of course !).
  - nickb 18y ago
    I agree with you but I think your odds are way too generous :). Vinod Khosla is another high profile VC that has taken some heavy positions in clean tech as well but he has kept his ear to the ground and has invested in quite a few of internet/tech startups as well. Problem with clean tech is that most of it is capital intensive and many times you have no idea if something will work until you spend $10M on it. You just can't fail fast. After you do your R&D, few years will pass. Then, if you have something, you will have to raise another huge round so you can build it out. That's very cap intensive and again, takes long time. Most funds operate on a 7yr timeline. With cleantech, you'll be lucky if you make an exit after 10 years. And still, the biggest issue, as I pointed initially, is the lack of exit points. IPOs are very hard these days and who knows what the future will look like.

7 points by nickb 18y ago

rms 18y ago

This is Al Gore's fault.

nickb 18y ago

Other than betting on cap & trade gov subsidies, I wonder how they plan to exit these positions...

nostrademons 18y ago
I think that Doerr may be betting that if he throws enough money at enough different startups, one of them is likely to come up with something that is economically competitive with fossil fuels, and can replace it over the long term. The worldwide oil market is in the trillions; it's not like there's a lack of money to be had. It's basically a high-stakes gamble with other people's money. If he wins, he goes down in history as the man (well, the guy behind the man) who saved the planet and ushered in the solar era. If he loses, his reputation is toast, as his clients' money. I'd give you about 10:1 odds that he loses, but considering the payoffs to himself, Kleiner, his clients, and mankind as a whole, I'm glad he's taking that bet.
- michaelneale 18y ago
  Its a ballsy move, I think its great. Death or Glory ! (if Death means you retire in shame, comfortably retire of course !).
- nickb 18y ago
  I agree with you but I think your odds are way too generous :). Vinod Khosla is another high profile VC that has taken some heavy positions in clean tech as well but he has kept his ear to the ground and has invested in quite a few of internet/tech startups as well. Problem with clean tech is that most of it is capital intensive and many times you have no idea if something will work until you spend $10M on it. You just can't fail fast. After you do your R&D, few years will pass. Then, if you have something, you will have to raise another huge round so you can build it out. That's very cap intensive and again, takes long time. Most funds operate on a 7yr timeline. With cleantech, you'll be lucky if you make an exit after 10 years. And still, the biggest issue, as I pointed initially, is the lack of exit points. IPOs are very hard these days and who knows what the future will look like.