The angel’s perspective; What to look for when investing in the green economy

The transition to the green economy is here, be that a shared electric vehicle, smarter use of resources in the home or simply not using plastic bags at the supermarket.
 
​However, how do you identify the companies that will be successful in developing unique products and services that will accelerate this transition?
 
This is an area where we, at the Green Angel Syndicate, are specialists.
 
The Green Angel Syndicate is a network of smart investors with a keen interest in the transition to a greener economy. We support early-stage technology companies developing innovative products and solutions for a more efficient and sustainable use of resource. This unique specialisation, alongside the knowledge and experience of our members creates exciting opportunities with the potential for attractive returns.
 
What are we looking for? 

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Often similar things as other investors in early stage technology companies;

• agile management teams
  • track record in building entrepreneurial businesses
  • deep industry knowledge and experience
  • ability to understand where the gaps are and how to fill them, e.g. team & collaboration partners
• strong IP, through patents and/or trade secrets (“know-how”)
• identified routes to market and engagement with potential customers and partners
• understanding of the market need and its drivers and regulations
• a product or service that has had some market testing

 
What’s different at Green Angel Syndicate?
 
It’s a deep focus on the market and regulatory drivers that underpin the transition to the green economy. Regulation is core to catalysing change and so it is very important to understand how this creates opportunities. However, businesses need to have the potential to compete in a world without subsidies. That’s what we look for.
 
The catch is, in many cases, regulations are playing catch up to technology and business model innovation. Data analytics and machine learning are revolutionising our understanding of the use and management of resources. The roll out of smart meters, wider use of time of day tariffs for electricity and gas and a move to smarter, connected cities, mean that our homes, workplaces, shops, etc. can manage the use of energy, heat, water and waste more efficiently.
 
For example, we recently invested in Powervault, which provides residential battery storage solutions. The current market is focused on households that have installed solar panels or have an Economy 7 energy tariff. In the future, the move towards a wider adoption of time-of-day tariffs for electricity (Ofgem’s target is late 2017), a change in electricity network regulations, to encourage more localised supply and demand, and a rapid reduction in battery costs, creates strong long-term drivers. Aside from the energy, Powervault uses Cloud based analytics and machine learning to monitor batteries and aggregate storage to support the operation of the distribution and transmission networks.
 
The team at Powervault has in-depth experience of the development of demand side response and the complex regulations in the electricity system. Members of GAS have helped the company to develop its sales and marketing strategy and provide expertise in electricity supply utilities. GAS as a value-adding investor.
 
Green Angel Syndicate is a network of smart investors who are committed to the transition to a greener economy. We support early stage technology companies developing products and solutions for a more efficient and sustainable use of global resources. This unique specialisation, alongside the knowledge and experience of our members, creates exciting opportunities with the potential for attractive returns.
Green Angel Syndicate  is the only angel syndicate in the UK which specialises in making investments that are of benefit to the green economy. Green Anger Syndicate operate from Edinburgh and London.
 
SMART INVESTMENTS. SUSTAINABLE CHANGE. Contact us if you would like to find out more.