How We're Different
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Carbonoffcast.com was founded on two principal beliefs; that global warming poses
a serious threat to our well-being and the planet; and that the energy sources,
products and services that will let us productively live our lives without further
damaging the earth do not exist yet.
Carbonoffcast.com aims to fight global warming by advancing the creation and adoption
of products and services that do not emit CO2 or other green house gasses. And to do
it through individuals and business' contributions based on their carbon footprints,
enabling a new kind of carbon neutrality.
We're different from other carbon offset programs
Like other carbon offset companies or programs, Carbonoffcast.com allows individuals
and businesses to calculate the amount of CO2 their activities produce,
showing the
carbon footprint. But there's where the similarity ends. Carbonoffcast.com takes contributions
towards that carbon footprint and applies it to solutions to climate change problems.
Until Carbonoffcast.com,
carbon offset programs have concentrated on projects like planting trees to take
CO2 back out of the air, or building renewable energy projects with
existing technology (like solar or wind energy). These are important remedies to today's
unsustainable level of carbon pollution.
But instead of offering another remedy, Carbonoffcast.com is working on the cure.
Carbonoffcast.com takes offcast contributions and plugs them into the biggest, most
effective machine for finding ways we can all live and work on this
planet without creating too much carbon in the first place: the
free market economy. With the right incentives, today's businesses
and entrepreneurs will make the products and services that do not
pollute but maintain or enhance the lifestyle we're accustomed to.
It's like the 'teach a man to fish' analogy. Give a man a fish,
he will eat for a day. Teach the man to fish, and he'll eat for a
lifetime. By supporting solutions that don't pollute, carbon
offset programs may someday not be necessary.
That incentive starts with your contribution to offcast your carbon
footprint today.
We're different from venture capital investment companies
Like venture capitalists (VC's), Carbonoffcast.com raises money and
uses it to fund companies with promising ideas for new products and
services. VC's look for investments that will give them the
highest return, and are advanced enough in their business development to
be less risky. Venture returns are expected to be at least 100%
(sometimes several times that), and funding amounts are usually
$.5 million to several million dollars. Venture capitalists are
highly selective in their investments; only one or two out of thousands of
businesses or ideas are funded. There are venture and angel
capitalists that focus on greentech - companies working on solutions for
climate change. This is very good. But there's also a very
good chance that the best solutions climate change may be overlooked by
these investment vehicles because they focus on monetary, not environmental returns.
Investment formula
Carbonoffcast.com may look at companies or technologies that are also
of interest to angel investors and VCs,, but weighs more heavily the strength of
potential positive carbon reducing impact instead of sheer potential monetary return.
VC's expect the maximum return on their investment, in one
aspect only: $$. Their (simplified) formula for picking companies
to invest in consists of the potential earnings growth, and risk factors
to those earnings. The higher the earnings potential and the lower
the risk, the more likely a match for VC's. On the other hand, carbonoffcast.com
raises money from contributions, not from investors like VC's.
That opens a lot of flexibility to invest differently; with a
different formula. For us,
success is not measured in % return like VC's, but is measured in clean
products getting out to the market place to make a difference and
contribute to the market viability of clean technology in different
ways. The highest measure of success for carbonoffcast.com is the amount of CO2
that funded companies prevent from contributing to global warming.
Scale
VC's have billions of dollars to invest, and need
to reduce overhead and management costs on that money to protect their
returns. This leads to their typically investing from $2 million to several
million dollars per investment. This fits their purpose well but
there are a lot of companies with promising
products/services/technologies that need early stage financing - they don't need that much money yet.
In fact, the most innovation is occurring at much smaller organizations.
We're different from Angel Investors
Carbonoffcast.com's funding model differs from Angel investors primarily in the same ways that we
differ from venture capital. With carbonoffcast.com, environmental benefits trump pure financial
return prospects, and an ownership stake is not required.
Angel capital comes from individual wealthy investors who prefer providing mentorship and experience
to the companies they invest in. This differs from venture capital, where money is managed as a fund
and the venture firm's managers have a more active role in their investments. Angels often invest in
the same startups as venture firms, but at much lower funding levels.
Like both venture and angel investors, Carbonoffcast.com works actively to ensure that the companies
that get funding succeed. Carbonoffcast.com has established a panel of experts in the business/functional
areas of finance, accounting, legal advice, marketing, public relations, sales and operations. This panel
is instrumental in guiding those with the environmental, scientific or technological innovations in what
it takes to succeed as a business.
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