CEIBS Clubs Host "Clean Tech" Conference
By Laurie Underwood
The outlook in China for the emerging field of "clean tech" (businesses supporting environmental protection and preservation) was the topic of a lively evening panel discussion on April 1 which attracted 300 attendees to the CEIBS auditorium. The verdict? Clean tech is a hot emerging sector with high potential for investors.
Entitled "Venture Capital Investments and Exits in the Clean Tech Industry," the event featured six experts in this new sector. Organized by CEIBS' Entrepreneurship Club, Finance Club, and Investment & CFA Club, the panel discussion was hosted in collaboration with INSEAD's 3i VentureLab. Andrew Qian, managing partner for New Access Capital, served as moderator.
Kicking off the discussion was international VC expert Prof. Martin Haemmig. A senior advisor on Venture Capital at Stanford University, Prof. Haemmig spoke on "Globalizing Venture Capital" with an emphasis on clean tech.
Opportunities are mushrooming in this new field, he stressed, citing data from the U.S.-based Clean Tech Index showing that top performers in this industry tend to out-perform companies in other fields. Among 129 companies surveyed in one of his studies, the average year-on-year performance expansion was 155 percent. "That means the market is very receptive to clean tech," he said. Among the top performing sectors in the industry in Europe, Prof. Haemmig named: solar energy, fuel cells, and biomass and biofuels.
Andrew Qian then led a discussion with the event's four clean tech experts: Horizon Fuel Cell co-founder and Vice President Taras Wankewycz, Cleantech Group China Country Director James Mahoney, and venture capitalists KPCB China Founding Managing Partner Tina Ju and Qiming Venture Partners Founder and Managing Director Gary Rieschel.
CHINA ON PAR
Mr. Qian stressed that China's interest in the clean tech field has expanded so rapidly that the field is now growing at a speed "on par" with that of the United States and Europe. "In the past five years in China, we have seen more than a dozen clean tech companies emerge," says Qian. "Most have attracted venture capital, and some are even going overseas." With this aggressive growth in mind, Qian said, the topic of the evening's panel discussion would cover "four buzz words: China, clean tech, VC, and entrepreneurship."
Clean tech entrepreneurs Wankewycz and Mahoney, next discussed which sectors are most attractive to venture capitalists now. Bullish Gary Rieschel declared to the audience of CEIBS students, "You should all find jobs in this area. This is a truly global VC business. Clean tech matters everywhere ? and it matters to the governments everywhere. All governments are either building clean tech systems for the first time or are improving them." He added that the industry is only just beginning its growth cycle. "We are five years into something that is going to last the rest of your life."
VC Tina Ju was also strongly positive about the field's potential, but mentioned several caveats. First, she stressed that clean tech is "not easy to learn," being a new and complex business area. Other challenges include: government regulation, technology risks, and the unpredictability of capital returns. At present, she is particularly interested in renewable energy, and pollution monitoring.
Given the success of the April 1 event, coupled with the clean tech sector's strong potential and clear tie-in to China's officially sanctioned CSR goals, the topic seems a sure bet for future events at CEIBS.
Mission Accomplished!
MBA Entrepreneurship Club Launches CEIBS Souvenir Store
With an informal mantra of "ask for forgiveness, not permission," the CEIBS MBA Entrepreneurship Club has earned a reputation of cutting through the red tape and launching innovate projects.
A case in point: In addition to launching Clean Tech Forum and other events featuring successful business innovators, the club has founded its own entrepreneurial venture. In December 2007, the group founded a souvenir store selling sweatshirts and t-shirts bearing the CEIBS name. Seven months later, it had recouped the RMB15,000 initial investment, mainly through a strategy of low-cost - there is no physical store - plus high value and high demand. To date, the club has racked up more than RMB30,000 in sales and is considering expanding into other products. It is also focused on ensuring that the store is continued by the next batch of MBA students, says Club President Vince Ghossoub.
