Lessons Learned: New Rules for Energy Startups

William Banholzer, the CTO of Dow Chemical, discussed the need for greentech startups to take a realistic approach to funding and growth at the EmTech conference. Unlike strictly IT startups like Facebook, these startups face special challenges:

1. Money: A great investment of money, market access, and industry knowledge is required for these startups to succeed.
2. Time. Fully functioning energy businesses take years to build, which is less appealing to venture capital firms.
3. Scale: Transitioning from prototypes to working models to mass market is more difficult with physical products.

As a result, more startups are partnering with corporations who have both the capital and the long-term timeframe to support more experimental technologies. For more of Banholzer’s insights into the evolving venture industry, check out the article.