It is no secret that venture capitalists have begun pouring billions into energy-related start-ups. But that interest is now spilling over to many others in Silicon Valley—lawyers, accountants, recruiters and publicists, all developing energy-oriented practices to cater to the cause.
The best and the brightest from leading business schools are pelting energy start-ups with resumes. And, of course, there are entrepreneurs from all backgrounds—but especially former dot-commers—who express a sense of wonder and purpose at the thought of transforming the $1 trillion domestic energy market while saving the planet.
The participants here say their whole approach to building new companies and industries is easily transferable to the energy world. But critics wonder whether this is just an echo of the misguided optimism of the Internet boom. And even those most involved in the trend say the size of the market opportunity in energy is matched by immense hurdles.
In the Internet boom, the mantra was to change the world and get rich quick. This time, given the size and scope of the energy market, the idea is to change the world and get even richer—but somewhat more slowly.
“There are real business models and real products to be sold—established markets and growing economics,” said George Basile, who has a doctorate in biophysics from the University of California, Berkeley, and specialises in energy issues.
Basile has just stepped into the fray himself. In January, he became the executive adviser for energy issues at Bite Communications, a San Francisco public relations firm with scores of technology clients that is now working to attract energy startups.
The sudden interest of lawyers, accountants and other members of the wider valley ecosystem strikes some as opportunistic.
“There’s a large amount of bandwagon-jumping right now,” said Mark Hampton, chief executive of Blanc & Otus, a technology-oriented public relations firm whose clients have included TiVo, Sybase and Compaq. Still, he understands the interest of relative newcomers: There’s a huge opportunity.”