VentureBeat article on Energy Management sector, a key market for Claremont Creek investments

January 17, 2013 source: VentureBeat

Venture BeatAshley Halligan, an analyst at Austin, Texas-based Software Advice — recently published an article on VentureBeat in December outlining the growing trend in VC-funded digital cleantech–shifting from typical hardware-based investing.

The article draws attention to interesting statistics including: there’s almost five million commercial facilities in the U.S. They account for nearly half of domestic energy consumption–but only five percent of the market has adopted digital energy management systems.

Element EnergyClaremont Creek Ventures has numerous energy management companies in its portfolio, including technology companies representative of the investment trends Halligan mentions. One of our companies, Element Energy, has created a collective hardware and software system that manges multi-cell battery systems, like large lithium battery packs.

adura technologiesEcofactorAnother portfolio company is Adura Technologies (who was recently acquired by Acuity Brands). Providing wireless lighting management solutions, Adura/Acuity Brands helps its clients — ranging from small offices to large campuses — acquire energy savings through intelligent lighting systems. Another portfolio company is EcoFactor. EcoFactor’s automated energy management services tackle excessive energy often stemming from HVAC use.

Halligan’s article cites a Pike Research report that estimates the EMS and services industry will grow to $5.5 billion by 2020, from just under $1 billion in 2011.

Because of the growing necessity — from cost savings, environmental responsibility, and legislative perspectives — businesses will continue to assess their consumption and energy performance. Subsequently, there will be a growing need for products, both hardware and software-based to assess, support, and provide prescriptive motion to a facility’s energy management needs.

To read more about what venture capitalists have to say regarding trends–and the long-term revenue potential, read the original story here.