The Cleantech Open grows despite a shrinking economy

Cleantech Open executive director Rex Northen

As the executive director of the Cleantech Open, Rex Northen is in a prime spot to track trends among young cleantech companies.
Since 2006, the Redwood City-based nonprofit has seen hundreds of startups come through its Cleantech Open business competition, which offers training, mentoring and cash to fledgling companies in six areas: transportation; renewables; energy efficiency; air, water and waste; green building; and smart power.

This year, the most obvious shift has been a more pragmatic approach from the entrants, reflecting the economic climate, Northen says. In general, the companies are seeking much smaller amounts of venture capital, and are looking to get a product out sooner and to get customers earlier.

The nonprofit Cleantech Open receives about 80 percent of its $1 million annual budget from corporate sponsors, and the rest from the U.S. government.

Northen says the recession made it tougher to raise funds this year. Yet the organization for the first time extended the competition to include Rocky Mountain and Pacific Northwest competitions. The winner of this year's national competition will be announced in mid-November. In 2010, it plans to expand to the Midwest and Mid-Atlantic regions, he says.

The organization in 2009 also launched a the Global Cleantech Open Ideas Competition, awarding startup services to very early stage concepts with potential to tackle environmental problems.

Of the companies that have gone through the Cleantech Open’s programs, the organization estimates that about 85 percent are still in business, while about 30 percent have raised outside capital, totaling about $130 million. 2008 winners include Power Assure, which in 2009 won $2.5 million Series-A funding from DFJ, and BottleStone, which is selling its recycled stone tiles at The Home Depot (NYSE: HD).