The sustainable technology sector is currently one of the most exciting places to be. However, bringing new technology to the market is time consuming, frequently capital-intensive and surrounded by regulatory hurdles.
The routes to market are still not well established and public policy responses are largely unpredictable as politicians react to increasing environmental pressures. This can lead to distorted markets, over enthusiasm by investors and the potential for “boom and bust”.
New businesses also have to attempt to second guess in which direction the cautious power and energy majors will move as they too try to develop greater sustainability in their own businesses.
But the most common barrier to success is a management team without the right mix of skills and experience. To avoid becoming part of start up failure statistics, getting the right people with a clear commercial approach is undoubtedly the most important priority. Also having the courage to hire the right people, even if that means giving up some of the control, is essential to achieve your business’ full potential.
Investors, like E-Synergy, look for a business’ ability to sustain itself with a rapid flow of profitable products or services through clearly identified sales channels. Businesses need to show clear commercial evidence that there really is a market before undertaking extensive technical development. Early and active engagement with potential customers and sales partners is therefore essential.
Successful businesses understand how regulation affects and drives their sector. Sometimes they can even turn regulation to their advantage, as they do not have the established player’s vested interest in resisting change.
Our futures may depend upon sustainable technology and the prospects are very bright for those who get their business right. Talented managers are currently flocking to this sector, lured by the prospect of moving into an area that could make a difference. There is plenty of money out there too for the right prospects. E-Synergy, for one, is investing now and in the coming months through its £30 million Sustainable Technology Fund.
Dr Andrew Stevenson is the chief executive officer of E-Synergy
