Series Preface |
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xix | |
Acknowledgments |
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xxi | |
Author |
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xxiii | |
Introduction |
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xxv | |
Part I The Great Green Opportunity |
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1 Why Are We Going Green? |
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3 | (8) |
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Green: The Big Opportunity for Green (as in Money) |
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3 | (2) |
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How Did We Get Here: The Roots of the Environmental Movement |
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5 | (2) |
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What Is Clean Tech, Green Business, Eco-Tech, EnviroTech or Just Plain Green? |
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7 | (2) |
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9 | (2) |
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2 Becoming a Greentrepreneur (a.k.a. Green Entrepreneur) |
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11 | (10) |
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Putting the Green in Greentrepreneur |
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11 | (4) |
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About Green Business Entrepreneurs |
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13 | (1) |
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About the Green Business Sector |
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14 | (1) |
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Putting the Entrepreneur in Greentrepreneur |
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15 | (2) |
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Traits of Successful Entrepreneurs |
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15 | (2) |
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Challenges of Building a Green Business |
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17 | (4) |
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3 Drivers of the Green Revolution |
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21 | (12) |
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22 | (1) |
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Driver #2: The "Gore" Effect |
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23 | (1) |
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23 | (1) |
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Driver #4: Energy Security |
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24 | (1) |
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Driver #5: The First "Green" Bubble |
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25 | (1) |
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Driver #6: Health and Wellness |
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25 | (1) |
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Driver #7: The "Dark Greens" and the LOHAS |
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26 | (1) |
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Driver #8: Worldwide Stimulus Funds |
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26 | (1) |
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Driver #9: Venture Capital |
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26 | (1) |
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Driver #10: The Internet and the PC |
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27 | (1) |
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Driver #11: Bush-nomics and Obama-nomics |
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28 | (1) |
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Driver #12: Compact Fluorescent Light Bulbs |
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28 | (1) |
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28 | (1) |
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29 | (1) |
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29 | (4) |
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4 Markets for Green Products |
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33 | (10) |
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Interpreting Green Sentiment |
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33 | (2) |
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Understanding Green Consumers |
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35 | (8) |
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Getting Green Consumers to Buy |
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36 | (2) |
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Learning More about Green Markets and Consumer Attitudes |
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38 | (5) |
Part II The Green Startup |
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5 Green Ideas, Inventions, and Businesses |
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43 | (16) |
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Recognizing Your "Green" Opportunity |
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44 | (3) |
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What Comes First: The Business Idea or a Decision to Start a Business? |
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44 | (1) |
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Where Do Business Ideas Come from? |
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45 | (1) |
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The First Idea Might Not Be the Best Idea |
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46 | (1) |
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47 | (2) |
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How Green Is Green Enough? |
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49 | (1) |
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Development of Your Green Business Concept |
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49 | (2) |
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To Business Plan or Not To Business Plan |
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50 | (1) |
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An Idea versus an Invention |
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51 | (1) |
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Deciding on a Startup or a Small Business |
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51 | (2) |
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The First Few Months Ahead |
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53 | (6) |
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59 | (12) |
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59 | (1) |
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Why Do You Need to Think about These Choices? |
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60 | (1) |
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The Question of When: When to Legally Form Your Green Startup |
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61 | (10) |
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Can You Wait Too Long to Incorporate? |
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63 | (1) |
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Running a Startup "On the Side" |
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63 | (8) |
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71 | (16) |
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71 | (4) |
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71 | (1) |
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72 | (1) |
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73 | (2) |
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Identifying Green Collar Talent |
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75 | (1) |
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Government "Green" Training |
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75 | (1) |
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75 | (1) |
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Employees and Consultants |
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76 | (1) |
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77 | (1) |
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78 | (9) |
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87 | (16) |
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87 | (3) |
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How Much Does It Take to Get Started'? |
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87 | (1) |
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Where Does the Initial Funding Come from? |
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88 | (2) |
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90 | (1) |
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91 | (1) |
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Your "Right" Source of Funds |
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92 | (1) |
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93 | (10) |
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What Are Investors and Partners Looking for? |
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94 | (9) |
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9 Green Intellectual Property |
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103 | (12) |
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103 | (1) |
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Basics of Intellectual Property |
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104 | (5) |
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105 | (1) |
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106 | (1) |
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106 | (1) |
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107 | (2) |
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Fast-Tracking Your Green Patent |
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109 | (1) |
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110 | (1) |
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110 | (5) |
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115 | (22) |
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Selling as a Green Startup |
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115 | (1) |
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Positioning Green Products |
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116 | (2) |
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118 | (2) |
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120 | (7) |
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120 | (3) |
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123 | (1) |
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Third-Party Marketing Agreements with Utilities |
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124 | (2) |
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Renewable Energy Certificates |
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126 | (1) |
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Selling Your Products Abroad |
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127 | (1) |
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Understanding International Issues |
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127 | (1) |
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Identifying International Markets |
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128 | (9) |
Part III The Green Playing Field |
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11 Understanding Utilities |
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137 | (18) |
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137 | (2) |
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Structure of Electric Utilities |
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139 | (1) |
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Types of Utilities: POUs, IOUs, and Rural Co-Ops |
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139 | (1) |
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140 | (3) |
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140 | (2) |
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142 | (1) |
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142 | (1) |
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Electricity Transmission and Distribution |
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143 | (1) |
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144 | (1) |
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Organization and Regulation of Electric Utilities |
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145 | (4) |
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145 | (1) |
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FERC: Federal Regulatory Authority over the Entire Transmission System |
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146 | (1) |
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NERC: Overseeing the Reliability of the Power System |
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146 | (1) |
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The Western and Eastern Interconnections: An Interconnected Power System |
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146 | (1) |
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Regional Entities: Supervising the Power System in the Region |
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147 | (1) |
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Control Areas: Coordinating the Day-to-Day Operation of the Power System |
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148 | (1) |
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PUCs: Regulation on the State Level |
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148 | (1) |
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Electricity Industry Restructuring and Deregulation |
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148 | (1) |
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Regulation of Pricing of Electric Utilities |
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149 | (6) |
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FERC: Regulating Wholesale Electricity Rates |
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150 | (1) |
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PUCs: Setting Retail Rates for Electricity |
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150 | (1) |
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Process for Rate Setting: Allowing an Appropriate Rate of Return |
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151 | (1) |
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PURPA: Encouraging Renewable Energy |
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152 | (1) |
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Environmental Regulations: Encouraging Renewable Energy |
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153 | (2) |
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12 How Project Finance Works |
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155 | (14) |
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155 | (1) |
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Why Is Project Finance Important in Green Business? |
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156 | (2) |
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Impact of Project Finance on Clean Technology |
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157 | (1) |
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When Project Finance Makes Sense |
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158 | (1) |
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Structuring a Project Finance Transaction |
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159 | (10) |
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Limitations on the Project Company |
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160 | (1) |
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161 | (1) |
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What If It All Goes "South"? |
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161 | (1) |
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Taxes and Project Finance |
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161 | (4) |
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Financing a Clean Technology Project |
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165 | (1) |
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165 | (4) |
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13 Working with the Government |
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169 | (12) |
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Government Commitment to Green Business |
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169 | (1) |
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The Cast of Government Players in Green Business |
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170 | (2) |
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Environmental Protection Agency |
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170 | (1) |
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171 | (1) |
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United States Department of Agriculture |
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171 | (1) |
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Small Business Administration |
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172 | (1) |
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172 | (1) |
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Selling to the Government |
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172 | (9) |
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Identify Contracting Opportunities |
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173 | (2) |
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Understanding the Federal Government Buying Process |
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175 | (1) |
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175 | (1) |
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175 | (1) |
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176 | (1) |
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Consolidated Purchasing Programs |
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176 | (1) |
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Contracting Goals and Special Small Business Designations |
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176 | (2) |
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Self-Certification Programs |
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177 | (1) |
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SBA-Administered Programs |
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177 | (1) |
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Getting the Government to "Buy Green" |
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178 | (3) |
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14 Laws, Regulations, Initiatives, and More |
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181 | (18) |
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Summary of Green Regulatory Landscape |
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181 | (1) |
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Key Environmental Regulations |
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182 | (3) |
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National Environmental Policy Act |
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182 | (1) |
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182 | (1) |
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183 | (1) |
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Federal Insecticide, Fungicide, and Rodenticide Act |
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183 | (1) |
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Toxic Substances Control Act |
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184 | (1) |
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Resource Conservation and Recovery Act |
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184 | (1) |
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Comprehensive Environmental Response, Compensation, and Liability Act (a.k.a. "Superfund") |
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184 | (1) |
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185 | (1) |
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Energy Policy Act of 2005 |
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186 | (1) |
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Energy Independence and Security Act of 2007 |
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186 | (1) |
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186 | (3) |
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186 | (1) |
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187 | (3) |
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188 | (1) |
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188 | (1) |
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189 | (1) |
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189 | (1) |
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Potential Climate Change Regulations |
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190 | (3) |
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Climate Change Response Council |
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191 | (1) |
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EPA Final Mandatory Reporting of Greenhouse Gases Rule |
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192 | (1) |
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192 | (1) |
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What Would SEC-Mandated Change Disclosure Mean? |
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193 | (1) |
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Other Federal Regulations |
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193 | (1) |
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Federal Renewable Energy Portfolio Standard |
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194 | (1) |
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Renewable Energy Payment System |
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194 | (1) |
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194 | (5) |
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195 | (1) |
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196 | (1) |
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196 | (3) |
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15 Grants, Loans, and Other Green Government Funds |
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199 | (10) |
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Identifying Cleantech Grants and Loan Programs |
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199 | (1) |
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Government Grants for Green Initiatives |
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200 | (1) |
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How to Apply for a Government Grant via Grants.gov |
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200 | (2) |
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DOE Advanced Research Projects Agency-Energy |
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202 | (1) |
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USDA Business and Industry Loan Guarantee Program |
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202 | (1) |
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DOE Loan Guarantee Program |
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203 | (1) |
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Small Business Administration Loans |
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204 | (2) |
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SBA 504 Green Loan Program |
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205 | (1) |
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206 | (1) |
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Small Business Innovation Research and Small Business Technology Transfer Programs |
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206 | (2) |
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Raising Funds through Green Bonds |
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208 | (1) |
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Clean Renewable Energy Bonds |
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208 | (1) |
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Qualified Energy Conservation Bonds |
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208 | (1) |
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16 Taxes and Incentive Programs |
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209 | (10) |
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Understanding Tax Incentives |
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209 | (1) |
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210 | (1) |
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210 | (1) |
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211 | (1) |
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212 | (1) |
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212 | (1) |
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Commercial Building Tax Deduction |
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213 | (1) |
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214 | (1) |
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Other Tax Incentive Programs |
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214 | (5) |
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Biofuel Excise and Income Credits |
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214 | (1) |
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Value-Added Producer Grants |
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215 | (1) |
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Carbon Dioxide Sequestration Credit |
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215 | (4) |
Part IV Green Progress (So Far) |
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17 Greening Your Business |
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219 | (12) |
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219 | (1) |
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219 | (1) |
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220 | (1) |
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220 | (1) |
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Purchase Green Cleaning Supplies |
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220 | (1) |
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Utilize Green Packaging Policies and Techniques |
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221 | (1) |
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221 | (2) |
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Generate Your Own Solar Energy |
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221 | (1) |
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222 | (1) |
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Purchase Renewable Energy Certificates to Offset Carbon Emissions |
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222 | (1) |
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Adopt Energy-Efficient Practices |
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223 | (2) |
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Utilize Energy-Efficient Lighting Techniques |
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223 | (1) |
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Make Your Computers Run Greener |
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223 | (1) |
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Make Smart Choices about Heating, Ventilating, and Cooling Your Workspace |
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224 | (1) |
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Green Your Office Equipment |
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225 | (1) |
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Reduce, Reuse, and Recycle |
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225 | (2) |
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Start an Office Waste Reduction and Recycling Program |
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225 | (1) |
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Be Conscious of Your Coffee |
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226 | (1) |
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Reduce Waste from Toner and Ink Cartridges |
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226 | (1) |
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227 | (1) |
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227 | (3) |
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Find Natural Ways to Control Tests |
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227 | (1) |
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Make a Paperless Office a Reality |
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227 | (1) |
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Create a Green Marketing Strategy |
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228 | (1) |
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Comply with Environmental Regulations |
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229 | (1) |
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Encourage Use of Public and Alternative Forms of Transportation |
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229 | (1) |
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Developing an Environmental Management Plan |
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230 | (1) |
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Decrease Your Carbon Footprint |
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230 | (1) |
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Making "Greening" a Priority during Contract Negotiations |
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230 | (1) |
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231 | (10) |
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The Growth of Green Standards |
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231 | (2) |
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233 | (1) |
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234 | (1) |
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Leadership in Energy and Environmental Design |
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234 | (1) |
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U.S. Department of Energy's Voluntary 1605(b) Greenhouse Gas Registry |
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235 | (1) |
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Climate VISIONVoluntary Innovative Sector Initiatives: Opportunities Now |
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235 | (1) |
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235 | (1) |
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The Chicago Climate Exchange |
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236 | (1) |
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Walmart Sustainability Index |
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236 | (1) |
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What Does the Sustainability Index Do and How Does It Work? |
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236 | (1) |
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Carbon Disclosure Project |
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237 | (4) |
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19 Venture Capital and Clean Technology |
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241 | (8) |
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Green Venture Capital Industry |
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241 | (4) |
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Importance of Venture Capital for Clean Technologies |
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245 | (2) |
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Should Your Business Pursue Venture Capital? |
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247 | (2) |
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20 International Landscape |
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249 | (12) |
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249 | (4) |
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250 | (1) |
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251 | (1) |
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252 | (1) |
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Thinking Globally about Intellectual Property |
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253 | (1) |
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International Considerations for an IP Strategy |
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253 | (1) |
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Raising Money from Foreign Markets |
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254 | (7) |
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Introduction to the London Alternative Investment Market |
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255 | (1) |
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Benefits of Listing on the AIM |
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255 | (1) |
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Considerations, Costs, and Downsides of Listing on the AIM |
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256 | (5) |
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261 | (10) |
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Growth, Liquidity, and Exit Events |
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261 | (2) |
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Clean Technology M&A and IPOs |
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263 | (2) |
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How to Prepare Your Business |
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265 | (6) |
Part V Green Business Fundamentals |
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22 Market Research and Business Planning |
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271 | (12) |
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271 | (3) |
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271 | (1) |
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272 | (2) |
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273 | (1) |
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273 | (1) |
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274 | (1) |
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Basics of a Business Plan |
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274 | (5) |
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What Are the Three Main Types "Business Plans"? |
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275 | (1) |
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275 | (1) |
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Building Your Executive Summary |
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276 | (1) |
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276 | (1) |
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Keeping Your Business Plan Confidential and Proprietary |
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277 | (1) |
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Giving a Potential Investor the Information Necessary to Make a Decision |
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278 | (1) |
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Template Executive Summary Business Plan |
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279 | (1) |
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Business Planning Software |
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280 | (3) |
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283 | (16) |
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Selecting Your Company Name |
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283 | (6) |
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289 | (2) |
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Summary of the Rules of Thumb |
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291 | (1) |
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291 | (5) |
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Employer Identification Number (EIN) |
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293 | (1) |
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Qualifying to Do Business in Another State (Other than the State of Incorporation) |
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293 | (1) |
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294 | (2) |
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296 | (3) |
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Are There Any Restrictive Agreements in Your Employment Documentation and Do You Have Copies in Your Files (Including Confidentiality Agreements, Noncompetition Agreements, Nonsolicitation Agreements, etc.)? |
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296 | (1) |
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Have You Identified Every Contractual Limitation You Would Need to Observe? |
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296 | (1) |
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Are You Bound by an Employee Nonsolicitation Agreement? |
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296 | (1) |
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Are You Bound by a Customer Nonsolicitation Agreement? |
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297 | (1) |
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Have You Breached Your Duty of Loyalty to Your Current Employer Prior to Departing? |
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297 | (1) |
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Have You Been Careful to Not Reveal Any Trade Secret Information? |
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297 | (2) |
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299 | (12) |
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Founder Decisions and Agreements |
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299 | (5) |
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299 | (1) |
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I'll Be CEO, CMO, CSO, Director of Business Development, CFO, and Head Cheerleader |
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299 | (1) |
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Who Decides "What's for Lunch?" |
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300 | (1) |
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Who Decides "If We Buy the Whole Pizza Parlor?" |
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300 | (1) |
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300 | (1) |
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300 | (1) |
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"How Many Days of Vacation Do T Get?" |
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300 | (1) |
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300 | (1) |
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301 | (1) |
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301 | (2) |
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Filling the Company Coffers |
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301 | (1) |
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How Much of the Company Do We Own? |
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301 | (1) |
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Some of Your Stock Now ... and Some of Your Stock Later |
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302 | (1) |
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"No, You Can't Sell Your Stock" |
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303 | (1) |
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303 | (1) |
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Founding Team Questionnaire |
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304 | (2) |
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306 | (5) |
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Roles of the Board of Directors |
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307 | (1) |
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308 | (1) |
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308 | (1) |
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309 | (2) |
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311 | (10) |
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311 | (2) |
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311 | (1) |
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311 | (1) |
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312 | (1) |
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312 | (1) |
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313 | (1) |
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313 | (3) |
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Employees or Independent Contractors |
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314 | (1) |
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Offer Letters and Employment Agreements |
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314 | (1) |
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315 | (1) |
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Protecting Intellectual Assets |
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315 | (1) |
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316 | (5) |
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316 | (1) |
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Employee Taxes and Benefit Programs |
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316 | (2) |
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318 | (1) |
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318 | (1) |
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318 | (3) |
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321 | (8) |
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Common Securities Issued by Startups |
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321 | (2) |
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General Information about Issuing Securities |
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321 | (1) |
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321 | (1) |
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322 | (1) |
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Convertible Preferred Stock |
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322 | (1) |
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322 | (1) |
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322 | (1) |
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323 | (1) |
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323 | (2) |
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Federal Regulation of Securities |
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324 | (1) |
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325 | (4) |
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What Is the Difference between Stock and Stock Options? |
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326 | (1) |
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Why Would You Grant Stock or Options to Employees? |
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326 | (1) |
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Different Vesting Approaches |
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326 | (3) |
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329 | (14) |
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Raising Money from Friends and Family |
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329 | (3) |
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329 | (1) |
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330 | (1) |
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Selling Securities (Debt or Equity) to Unaccredited Investors |
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331 | (1) |
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Structuring the Investment |
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331 | (1) |
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331 | (1) |
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332 | (1) |
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Raising Money from Angels and Angel Groups |
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332 | (4) |
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334 | (1) |
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Locating Angel Investors and Angel Groups |
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334 | (1) |
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Structuring Angel Investments |
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335 | (1) |
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Raising Money from Venture Capital |
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336 | (3) |
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Can Your Business Raise Money from Venture Capitalists? |
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336 | (1) |
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Venture Capital Financing |
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337 | (1) |
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337 | (2) |
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Obtaining a Business Loan |
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339 | (4) |
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339 | (1) |
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Specific Loan Programs for Startups |
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340 | (2) |
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Small Business Administration-Backed Loans |
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342 | (1) |
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28 More about Fundraising |
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343 | (22) |
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Developing Your Fundraising Strategy and Plan |
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343 | (14) |
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Step 1: Make a Funding Self-Assessment |
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343 | (1) |
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Step 2: Establish a Fundraising Team |
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344 | (1) |
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Step 3: Determine the Funding Needs of the Business |
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345 | (1) |
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Step 4: Analyze the Marketplace for Investor Targets |
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346 | (3) |
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How to Find Out Who Invests in Your Technology, Industry, or Area? |
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347 | (2) |
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Step 5: Create the Necessary Fundraising Tools |
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349 | (1) |
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Step 6: Solicit Interest and Meetings from Targeted Investors |
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350 | (2) |
|
Should We Hire a Placement Agent or Finder to Help with Fundraising? |
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351 | (1) |
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Step 7: Make Presentations to Prospective Investors |
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352 | (1) |
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Do I Need a Venture Capital Firm to Sign my NDA? |
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353 | (1) |
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Step 8: Receive Feedback from Prospective Investors |
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353 | (3) |
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A "No," a "Yes," or a "Maybe"? |
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354 | (2) |
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Step 9: Doing Business Due Diligence |
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356 | (1) |
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Step 10: And Finally, "Yes. Here's a Term Sheet." |
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356 | (1) |
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Convertible Note Financing |
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357 | (2) |
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Background on Convertible Notes |
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357 | (1) |
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Benefits of a "Bridge" Financing |
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358 | (1) |
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Sample Term Sheet for Convertible Note Financing |
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359 | (2) |
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Venture Capital "Fit" Test |
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361 | (4) |
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29 Strategies for Managing Startup Intellectual Property |
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365 | (10) |
|
General Intellectual Property Strategies |
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365 | (4) |
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Incorporate IP Costs into Your Budget and Business Plan |
|
|
365 | (1) |
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Develop a Trade Secret Policy |
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365 | (2) |
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Utilize Nondisclosure Agreements |
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367 | (1) |
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Understand and Utilize Copyright Protections |
|
|
368 | (1) |
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Ensure Your Employees and Consultants Enter Invention Assignment Agreements |
|
|
368 | (1) |
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369 | (2) |
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Filing for Provisional Patents |
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|
369 | (1) |
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Don't Miss the Patent Filing Deadlines |
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|
370 | (1) |
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Develop an International Patent Strategy |
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370 | (1) |
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Trademarking for Startups |
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371 | (4) |
|
Research Competing Trademarks before You Pick a Name or Brand |
|
|
371 | (4) |
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375 | (14) |
|
Finding and Working with a Lawyer |
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|
375 | (6) |
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Researching and Identifying an Attorney |
|
|
375 | (1) |
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|
376 | (1) |
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Intellectual Property and Patent Counsel |
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|
376 | (1) |
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Specifics for Intellectual Property and Patent Counsel |
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377 | (1) |
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Using Legal Services Efficiently |
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377 | (4) |
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Keeping Fees and Expectations Reasonable |
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|
377 | (4) |
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Finding and Working with an Accountant |
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381 | (3) |
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382 | (1) |
|
Tips for Effective Handling Expense Reports |
|
|
382 | (1) |
|
Outsourcing Your Bookkeeping |
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|
383 | (1) |
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Inputting Information into Your Accounting System |
|
|
383 | (1) |
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384 | (5) |
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|
385 | (1) |
|
Payroll and Employee Information |
|
|
385 | (1) |
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|
385 | (1) |
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386 | (1) |
|
Records of Company Assets |
|
|
386 | (3) |
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389 | (12) |
|
Deciding to Pursue an 1PO or Merger |
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389 | (3) |
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|
390 | (1) |
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|
390 | (1) |
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391 | (1) |
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391 | (1) |
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392 | (5) |
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The M&A Transaction Process |
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392 | (2) |
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|
392 | (1) |
|
Letter of Intent or Term Sheet |
|
|
392 | (1) |
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|
393 | (1) |
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|
393 | (1) |
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|
394 | (1) |
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|
395 | (1) |
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|
396 | (1) |
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397 | (4) |
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|
397 | (2) |
|
Selecting the Managing Underwriter |
|
|
397 | (1) |
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|
398 | (1) |
|
Registration Statement Preparation |
|
|
398 | (1) |
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|
398 | (1) |
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|
399 | (1) |
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|
399 | (1) |
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|
399 | (1) |
|
|
399 | (2) |
Appendix: Additional Resources |
|
401 | (4) |
|
Green Entrepreneur Handbook Web Site |
|
|
401 | (1) |
|
|
401 | (1) |
|
Green Web Sites, Blogs, and Online Resources |
|
|
401 | (1) |
|
Government and Association Resources |
|
|
401 | (1) |
|
Startup Web Sites, Magazines, and News |
|
|
402 | (1) |
|
|
402 | (1) |
|
|
402 | (1) |
|
|
402 | (3) |
References and Reading List |
|
405 | (2) |
Index |
|
407 | |