Smart Grid Technology and Government “Shovel Ready” projects

In a Forbes interview with Bob Metcalf, Ethernet inventor, Polaris partner, and Chairman of Ember - maker of energy efficient technologies, executive editor Elizabeth Corcoran asks about the real impact of stimulus on energy startups? Bob Metcalf explains how solving energy is not this year’s problem, it is a long-term project; that means that there is time to do science. But when you need something by next fall, there is no time for science and you have to just use whatever is lying around; like these “Shovel Ready” projects President Obama always talks about. Mr. Metcalf says he is wary of the urgency always ascribed to energy innovation; like the world will end due to global warming or cooling, or more recently the added emphasis on ‘stimulating’ the economy. He goes on to explain how a lot of the money will be wasted. He says that when developing any new technology, a certain amount of waste is required. Ember does not invest in companies that rely on government cheese as a matter of principle, but anymore they have no choice. Private companies are being forced by the current business environment to go to the government for capital investment. This manner of capital investment changes the skill sets that new startups must develop in order to remain globally competitive. Now you have people who specialize in going to Washington to get money. If you are a young company, you want to know how to go get that money, because you’re competitors will. He related a story about how a company used $10,000,000.00 of venture capital funds to secure $100,000,000.00 of guaranteed government loans. This skews the skills needed for success, away from the prosperous chairman and CEO of successful “small business” startups, to the ineffectual mealy-mouthed political class which effectively seeks to squander public funds and tax dollars on padded pork projects and campaign contributions.