Israeli VC on Sand Hill road

Seeking the "Google of Water"

(English version of Globes article, published in print on May 26^th).

 

It’s been almost 5 months since I have adopted the new position of “ex-VC”. Amazing as it seems, there is an entire universe out there, which I have been actively exploring.  But this past week, I spent quite a bit of time hanging out in the same places that I used to, as it is clearly conference season.

 

From all of the events, I would like to discuss some thoughts following presentations by Al Gore and National Infrastructure Minister MK Binyamin Ben Eliezer.  This was the second time that I was privileged to hear Al Gore present the “inconvenient truth”.  First time was back in December 2005, when I was a co-sponsor for his Stanford event.

 

It is difficult to remain indifferent to the compelling data and reality of the world in which we are living.  Of course, it is important to change our behavior, adopting energy efficient lighting, driving fuel efficient vehicles and conserving water.  But what makes real impact is public policy.  Just see what’s happening in Spain and German both adopted aggressive programs encouraging PV installation for private and public electricity generation.  What about Israel?

 

I am puzzled by Ben Eliezer’s statements at the TAU Energy conference with regards to the ministry’s immediate plans. The focus being reducing electricity demand, by increasing tariffs to homes during peak hours, as well as building the disputed coal power plant in Ashqelon (even if “cleaner” technologies will be adopted). Ben Eliezer did announce a new renewable energy plan stating that by 2020, 20% of Israel’s electricity will be produced from renewable sources, but we all know how long these plans have been discussed, and how long will it be before they will be implemented.

 

Tachles, today we have solar water heaters, old news.  We are behind, so very, very behind).  I did not hear mention of incentives for installation solar panels like California, adoption of carbon taxes like Norway, nor aggressive feed-in tariffs like Spain or higher taxes for gas guzzling SUV’s, as in China.  I sit here in bewilderment. You would think that given Israel’s political reality, there would be no country in the world with a stronger motivation to move away from fossil fuels towards renewable energy

 

However, the entrepreneurial community is not standing still. It seems that every other person with whom I meet, seeks their next opportunity within the Cleantech world. Innovation and entrepreneurial culture, combined with management abilities, financial backing and this country’s reality, position Cleantech as the next growth opportunity for Israel.  

 

There are skeptics that think we’re in a Cleantech bubble. But just look at the state of our Kineret, or check out “Global Warming” on Wikipedia..  The climate crisis is very real, and big.  We have yet to see the “Google of Water”, nor the “Cisco of Solar”. There is a real opportunity for Israeli companies here, where not only can we make a difference, but be handsomely rewarded while doing so.  Let’s get to work!

Tags: Al+Gore, Binyamin+Ben+Eliezer, Inconvenient+truth, tau+energy+conference, coal+plant+in+ashqelon, global+warming, google+of+water, cisco+of+solar

Memorial Day Greetings

This was the subject of an email I received this morning. It’s such an unlikely combination of words – “Memorial Day Greetings”.  It’s as unlikely a combination as “Memorial Day Sale” and “Memorial Day Picnic”. As an Israeli, you never quite can understand why do people celebrate on a day designed to commemorate men and women who have died in military service to their country.  I suppose just another of the differences between Israel and the Silicon Valley.

Tags: memorial+day, yom+hazikaron

Al Gore in Israel

Back in December 2005, I had the opportunity to hear Al Gore deliver his now-famous presentation about the climate crisis. It was quite the eye opener.  At the time, Al Gore was delivering the presentation, introducing himself as the “former next President of the US” (he still is BTW).  Quite a lot has happened since then: Nobel prize, Oscar, and by now, he has delivered that presentation over 2000 times.  Today, Al Gore was awarded the Dan David Foundation prize, for the “present" category for alerting the world to the crisis caused by overuse of fossil fuels.

As part of his trip to Israel, Ness Technologies invited Al Gore to deliver his presentation yet again as part of their annual customer/partner meeting “We make IT happen”. I was there, Ness customers were there, and some Israel knesset members were there (together with an estimated 2000 other people!).

It is difficult to remain indifferent following that presentation. From the jam packed David Intercontinental, I continued straight to Airport City for IVA conference Day #2.  As I drove into the parking lot, it really bothered me to see all those SUV’s!

When I mentioned this to a former VC colleague of mine who has just recently purchased a new SUV, he smiled, and said “boys will be boys”. Hmmmmmmmmm. (BTW – even Arnold got rid of his Hummer after he saw the movie!

Al Gore’s presentation has so much data, delivering a truly powerful message. As in the TED presentation, he emphasized the importance of behavior change (get rid of the SUV, install energy efficient lighting, etc.), but more significantly, changing regulation.

What would happen if SUV’s were taxed 3X of what they are today, while hybrids tax reduced to 10% (like the proposed tax for ProjectBetterPlace’s battery-powered cars)?  What would happen if individuals and corporations had a carbon tax?  What would happen if installation of PV on my rooftop would be subsidized, with an attractive feed-in tariff already in place?  You don’t have to be a genius to figure it out.

Several Knesset members were in attendance.  I wonder if they got the message…

 

Tags: al+gore, climate+crisis, suv, ness+technologies, dan+david+award, iva+conference, israel+venture+association

IVA Day 1...

This morning started with Israel’s Cleantech meetup, and continued with Day 1 of the IVA conference.  Definitely a busy day for an “ex-VC” like me. 

Opening keynote by US VC Tim Draper, of DFJ. Tim demonstrated his presentation skills by describing the new type of entrepreneurs that he is seeking, the “super hero’s”, followed by a rock star performance of “Risk Master”. Lyrics by Tim, Music by Mystery Rock Star.

For a video of one of his previous gigs (Stanford, Singapore, Mountain View, New York), click here.

During Tim’s performance, I was sitting next to a buddie of mine that also spent many years in Silicon Valley.  We both looked at each other and pondered how this same performance delivered here in Israel, would feel TOTALLY different when delivered in the US…  Yes, culture is culture; not always transferable from one place to another - even if it is only a song.

Next up, Mike Moritz of Sequoia Capital, who promised his feet would not leave the ground (or something to that extent…).  His presentation, entitled: “Size Matters, How to get it, How to keep it”, discussed what it takes to build enduring, sustaining companies that can grow to be multi billion dollar companies (not those sold for a mere $200,$300,$400M).  Using examples from successful companies such as P&G, Walmart, News Corp, Fedex, Nike, Amazon, Intel and Apple, Mike’s presentation was both insightful and inspiring.

Key points delivered:

• Pursue billion dollar possibilities


• When you run out of market, expand into another such opportunity


• Expand with care - there are no shortcuts


• No need to be a public company to grow and become a significant company


• Examine your company as an outsider


• Foreigners can win in the US


• Skeptics are often wrong


• Never bow to setback


• Capital intensity sometimes does work


• Lack of money breeds ingenuity


• Invest during downturns


• Make the founders spirit live !!!

The last part of Mike’s presentation really drove that last point home, when he discussed Apple.  We all know that Steve Jobs was fired, apparently because he required “Adult Supervision”.  Adults were brought in (3 different CEO’s actually)… the company almost died.  The return of Steve Jobs brought us products that have become such a basic part of our day-to-day.  The big question is how did Steve make this transition from what was a “rotten Apple” to where the company is today.  The presentation highlighted the following points:

• Be realistic (know what is really going on)


• Focus on a few things


• Start with small wins (remember, the first products that Apple released post Steve, were essentially just better versions of what was already out there)


• Focused on the product and develop things people want (there came iPOD).


• When lightening strikes - strike (iPOD’s success, brought quick new iPODs to market, riding on this unexpected success)


• Design what you want to use (Personally - this could be a bit problematic at times…. I recall quite the number of products developed by techies to their spec, without thinking about what a user really wants)


• Stay right in front of the customer (In Apple's case, this was achieved via the Apple retail store)

Mike certainly touches on a sensitive point for the Israel venture industry.  I have blogged about this subject before, and hopefully the mindset of the VC as well as entrepreneur is changing.  Presentations like these certainly help to drive the message home. Thanks Mike!

The rest of the afternoon was busy with panels, presentations, awards, start-up presentations, and a schmoozfest (which I missed, as I had an important parent meeting back home).  But no worries, tomorrow is another day with IVA Day 2, as well as Ness Technologies “We Make it Happen” Summit, featuring (or shall I say staring?) Al Gore. It’s going to be a long week…

 

 

Tags: iva, mike+moritz, sequoia+capital, tim+draper, DFJ, ness+technologies, steve+jobs, apple+computer, riskmaster, cleantech+meetup

Cleantech group meets in Ramat HaSharon

Today’s morning started with the 3^rd Cleantech Israel “meetup” . The group found a new venue, since it is quickly outgrew Herzelia’s Max Brenner cafe… Each meetup brings new faces, eager to get involved in Israel’s renewable energy, water and environmental technology sectors.

Event speaker this time was Mike Granoff, President of Maniv Energy Capital and an investor in Shai Agassi’s Project Better Place, who gave his perspective on the venture and it’s potential.  Personally, I’m a fan!

There is no doubt that the Cleantech buzz (and real activity, not just buzz) here in Israel is growing. We are seeing hi-tech executives venture away from traditional IT industries, into this new field.  In my opinion, this is great news.  We have technology from the Universities and research institutes, and are now bringing management skills acquired from traditional fields into Cleantech.  Growing as well are funding alternatives, although this still lags IMHO.

Thanks again to Israel Cleantech’s Jonathan Shapira and Gene Dolgin for organizing.

 

Tags: cleantech+israel, michael+granoff, project+better+place, maniv+energy+capital, cleantech, israel+cleantech+ventures, jonathan+shapiro, gene+dolgin

Sergey vs. a movie

Thursday night. 8:45PM. I had a tough choice to make: do I drive ~1 hour to the Holon industrial park (something like south san jose) for a GarageGeeks and Yossi Vardi party hosting guest-of-honor Sergey Brin - or - in my new “ex-VC” mode, do I venture to the local DVD library for a new flick.  Obviously, I opted to party. As a former VC collegue of mine told me at the party, “How can I miss an invitation-only event with Sergey Brin?”.

For a video (partial) of the event, check out this blog.

Sergey Brin came to Israel to participate in the Israeli Presidential Conference 2008. Together with a who’s who of participants - it’s rumored that Ben Gurion Airport had never seen as many private jets…

Sergey held the stage until just about midnight… by the time I got home, I was definitely tired.  I’m sure he’ll remember his visit to Israel, even though I doubt that he’ll return my emails… even though I now have his personal google email (me and all the rest of the GarageGeeks party attendees ).

 

Tags: garagegeeks, yossi+vardi, sergey+brin, google, israeli+presidential+conference+2008, holon

No surprises please!

That is what I have always asked from my entrepreneurs.  If there is bad news, I want to know about it.  Same for good news.  But PLEASE, no surprises!

Entrepreneurs and their VC’s (and board members) have a very delicate relationship.  We all like to think that it’s always open, friendly, etc., etc., etc.  But looming overhead is that cloud, which never quite goes away… you can think of it as the “power” cloud. 

The most effective boards are those that discuss real issues, not just get together periodically for an update by the CEO.  Our job on the board (other than governance, etc.) is to keep the company on track, raise new issues that perhaps are not part of the day-to-day, and make sure that management has the full picture.   For these discussions to have any impact, the board needs facts – be them good or bad.

Today in a casual entrepreneur, “ex-VC” meeting, I was asked my opinion on how to manage boards, and when best to deliver troubling information.  My answer: right away.

After all, when you really think about it, who really has power over whom?

Tags: venture+capital+boards, hate+surprises

Peacefulness can be misleading

This past Friday afternoon, as part of multi-family trip to the south of Israel, we decided to visit Sderot.  Upon our arrival, after a few words advising proper behavior if a “Color Red” alert happens (meaning, Kassam rockets have been fired, and are en route to hit somewhere nearby), we were given a “tour” of this small town. 

It is easy to see some of the obvious adjustments made by the town. Schools and public buildings have – mostly – been fortified with protective shields, bus stops look like bomb shelters, etc.  What you can’t see are the implications that this has had on the people of Sderot.  In fact, this Friday afternoon was so peaceful and quiet, you would never have guessed that the following day, 21 Kassam rockets were to be fired, with 5 landing within populated areas of this town. That means 21 times of running to the bomb shelter, waiting for the boom, before returning back to continue where one left off - if possible…

For my boys (14,10,4) this was quite the eye-opener.  A different world from the one in which they live. Normal for my kids would be collecting shells (those found on the beach).  In Sderot, their peers collect Kassam rocket pieces.

It is not the objective of this blog to discuss politics, so I won’t…. I just felt compelled to share. 

 

Tags: Sderot, kassam+rocket, Color+Red

Al Gore @ TED

In December 2005, I was asked to co-sponsor an event: "The Heat is On: Silicon Valley Takes on Global Warming".  On that cold December evening, I had the opportunity to join an auditorium full of people @ Stanford to hear Al Gore deliver his famous speech.  Undoubtedly a significant milestone in my thinking about the subject.

For anybody that hasn’t seen Al Gore’s “New Thinking about the Climate Crisis” speech @ TED last February, click below.

The main point delivered this time - it’s not just about changing behavior.  It’s about changing the laws, which lead to change in behavior.  Of course, when I watched this video, I couldn’t stop thinking about Israel (and the minimal attention that we give this subject…).

Yes, it’s getting better, but there’s a *long* way to go.  Wouldn’t you expect that Israel, with virtually no natural resources, who’s political reality creates the strongest motivation to move to clean energy, would be driving as aggressively as possible to lead the change?

 

 

Tags: TED+2008, Al+Gore, Global+Warming

Blogging is like going to the gym...

When you’re in the swing of things, you just keep on blogging.  However, take a quick break (for whatever reason), and you find it quite challenging to pick it up again.  Reminds me of what happens when you miss a few spinning classes in a row .

Tags: blogging+and+the+gym