applicant packet | cohort 8 - elemental excelerator · 2019. 5. 28. · our goal is to bring...

February 5 - April 12 @ 5 pm PT Qualifying Apps will be open - take 5 minutes to apply!

April 22 - May 24 Round One (invitation only)

May 14 Ecosystem Deal Day - more info here and on page 11

May 28 - August Due diligence and cohort selection

August 2019 Offers for our next cohort will be sent

October 2019 Kickoff Week in Honolulu for all tracks

Applicant Packet | Cohort 8

Key Dates

http://www.elementalexcelerator.com/apply

http://elementalexcelerator.com/latest/articles/deal-day-2019/

Table of Contents

Page

Our portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Elemental Excelerator overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

What is the profile of a successful applicant? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

What technologies are Elemental Excelerator targeting for this next cohort?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

The Accelerator Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Demonstration Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Go-to-Market Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Equity & Access Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

What does success look like post Elemental Excelerator?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

How do we evaluate companies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Elemental Program Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

You’re accepted! What services will Elemental Excelerator provide?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Meet Our Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Our Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

elementalexcelerator.com/apply

http://elementalexcelerator.com/apply


Financial Institutions

(fuels)

Commercial

Residential

Microgrid

Industrial

Utility IT

Renewable Generation

Energy Storage

Volt / VAR

GENERATION

LOW VOLTAGE

SUBSTATION

STEP-UP TRANSFORMER

PORTFOLIO Energy

= Newest Cohort

Mobility Food & Agriculture

Water

Electrification

TransportationNetwork Company

Transit Smart Cities Micromobility

Agtech

Plastics

Carbon

Food, Feed, and Fuels

Aviation

ORGANIC WASTE

RESIDENTIAL CITIES & MUNICIPALITIES

Circular Economy

&

CONSUMER

INDUSTRIAL

Recommerce


OVERVIEW

About Elemental Excelerator Our goal is to bring commercial opportunities to entrepreneurs who are building world-changing companies. Each year, we select 15-20 companies that best fit our mission, fund each company up to $1 million, and surround each company with the resources it needs to succeed.

How are we different?

1. We are known for deploying projects and supporting startups through key commercial inflection points. For example, expanding to a new market or customer segment.

2. Our portfolio is made up of startups focused intently on commercialization. We work with companies, such as Opus 12, which is piloting carbon capture technology with the world’s biggest emitters, and Proterra, which has raised more than $500 million to date.

What are the major deal points?

• For the Go-to-Market Track, we provide $100,000 in funding for customer discovery and validating the next market and/or stage of a company’s business model, along with additional services to help companies scale globally. We require a 3% warrant donation to align our success with yours — and to support future entrepreneurs since we operate as a nonprofit. See page 6 for more information on our Go-to-Market Track.

• For the Demonstration Track, we provide up to $1,000,000 in funding for project deployments in Hawaii and the Asia Pacific. We require a 1% warrant donation in exchange for services. See page 6 for more information on our Demonstration Track.

• For Equity & Access Track, we invest up to $1,000,000 in funding for project deployments that increase technology access and sustainability within California’s disadvantaged communities. See page 6 for more information on our Equity & Access Track.

• In addition to funding, we provide a variety of services to our portfolio companies. See page 10 for more information on our services.

Where do we fund projects?

🌏Asia Pacific In the Asia Pacific region, we fund projects that have the potential to address global

environmental challenges and/or significantly reduce greenhouse gas emissions.

Place-based Innovation While it makes sense to fund research at a national level, innovation and deployment is all local. We co-fund and deploy projects alongside startups, businesses, and policymakers.

Hawaii Hawaii is an island state that faces unique challenges and opportunities around transportation, water, agriculture, energy, and waste. We are looking for solutions that are particularly impactful in this island context. Our team has developed deep relationships across public, private, and nonprofit sectors to help startups deploy at the community level.

Disadvantaged Communities in California

California has been a center of innovation for many years. Now is our chance to deploy new technology - through the lens of social equity - alongside communities who have had less access to technology and clean infrastructure. We prioritize projects in disadvantaged communities as identified in yellow, orange, and red by the June 2018 CalEnviroScreen map, included on page 17.



WHAT ARE WE LOOKING FOR?

What is the profile of a successful applicant?

For our Go-to-Market Track, we require:• Two full-time employees• A minimum of an operating prototype

With a preference for applicants with…• Revenue• Some outside capital raised • Differentiated IP• A strong team with relevant domain experience and key insights into

the market• Appropriate technology approvals/certifications for operation in their

focus market In addition to our Go-to-Market Track requirements, for our Demonstration and Equity & Access Tracks we are looking for:

• Growing businesses with a scalable model and clear opportunities for impact across markets

• Proof points in your home market (multiple customer deployments)• Appetite for expansion• A demonstration project concept that is high-impact and in line with your core business strategy• For Equity & Access, an innovative technology and sales strategy that increases access to this technology

for disadvantaged communities in CaliforniaWith a preference for applicants with…

• Significant revenue• 3+ months of runway• A growing team that can support multiple project deployments• Significant outside capital raised (raising a Series A and beyond)• More developed demonstration projects with partners/customers already committed

What technologies is Elemental Excelerator seeking for this next cohort?

Our main pillars are:• Energy• Food and agriculture• Water• Mobility• Circular economy

Specific solutions we are seeking to fund this year can be found on page 18.

What we don’t fund:• Project Developers (solar, wind, storage, etc.)

selling third party products• Consulting firms• Marketing or PR agencies• Nonprofits• World-changing ideas without a prototype• Companies with fewer than two full-time team

members


“I lead recruiting for Elemental Excelerator. I’m looking for motivated entrepreneurs who are ready to take their company to the next level. Will that be you?”

Ramsay Siegal Managing Director, Accelerator


PROGRAM

As a growth accelerator, we will supercharge your network and provide access to our relationships and resources, but we will not do all the work for you. Our expectation is that you will carry opportunities and projects across the

line with seamless execution. Here is a detailed summary of activity by track:

Demonstration Track

Demonstration Track companies are asked to apply with a concept of the project you want to implement with Elemental. The more homework you’ve done – such as lining up project partners, knowing how you fit into the ecosystem, and collecting letters of support from customers and cost-share partners – the more competitive your application will be. The project must exhibit additionality. We are not a Business Development engine; we want to fund a new piece of technology, new angle on your business model, or entry into a new geographic territory. Our objective is to buy-down the risk of trying something new that will be transformational for your venture. We will not fund projects that are already under contract.

There are two key components to most demonstration projects that we’ve funded: 1. Technology development - To build out a new strategic feature or

enhancement that will get your solution to the next level2. New customers or partners - Who enable you to demonstrate a

new market, or commercial opportunity that will help you grow faster

Go-to-Market Track

Our Go-to-Market Track is custom designed for companies with an innovative technology and an excellent team (2 or more people), in search of product/market fit. We work with you on business model validation, development, and partnership - described in more detail below:1. Validation of product/market fit & business model

• Validate and vet your product with customers in the market• Test your hypothesis and underlying assumptions • Solidify a scalable business model

2. Company development• Work through company transitions (e.g. pivots and new market

expansion)• Develop key leadership skills (especially for first- or second-time CEOs)• Analyze your organizational requirements to scale

3. Partnerships & connections• Peer-to-peer feedback and problem solving• Engage and facilitate Elemental stakeholder opportunities • Access to subject matter experts• Introductions to customers and other strategic partners

Equity & Access Track

Our Equity & Access Track is designed for companies with an innovative technology and an excellent team (two or more people) in search of product/market fit, specifically within low-income communities where there is a compelling opportunity to increase access to innovation in California. We look for two kinds of companies: those that have equity at the core of what they do and those that are looking to accelerate more equitable offerings. Companies will participate in elements of our Demonstration Track with a


What we provide:• Up to $1M funding• Project design and project

management support• Introductions to customers,

investors, corporates, and other strategic partners (with ongoing relationship support through project completion)

• Support around policy, permitting, and other barriers to deployment

What we provide:• $100k funding• Customized coaching• Mentorship and targeted

expertise• Introductions to customers,

investors, corporates, and other strategic partners

What we provide:• Up to $1M investment• Project design and project

management support• Introductions to customers,

investors, corporates, and other strategic partners (with ongoing relationships support)


focus on deploying a transformational project within low-income communities in California. The track is designed with two principles in mind:

What does success look like post Elemental Excelerator?

Demonstration TrackWe like to see results scale up at least 10x our project size within 1-3 years. Here are two examples:

STEM: Elemental Demonstration Project - Stem was able to prove, for the first time, their dual-value business model using batteries in commercial buildings. They demonstrated the ability to provide commercial customers with demand charge management and load optimization while simultaneously aggregating the systems and turning over 1 MW of excess reserves to Hawaiian Electric as a grid asset. Scale-up: Stem used the business model scale up blueprint developed in Hawaii to bid into RFPs in California, winning an 85MW contract with Southern California Edison.

VIA: Elemental Demonstration Project - VIA built out their trusted analytics platform that can help utilities increase the reliability of their T&D networks in the face of budget limitations, aging infrastructure, extreme weather, and strain on the grid from variable generation sources. Scale-up: VIA is deploying the platform they built using funding from Elemental Excelerator’s Demonstration Track and feedback from customers with three Elemental Excelerator Global Partners.

Go-to-Market TrackPost-Elemental results vary by company on the Go-to-Market Track. Results include new connections to funders, vetted go-to-market strategies, and, in Allume’s case, being able to validate its value proposition with customers. ALLUME: About Allume - Allume has developed a solution for facilitating behind-the-meter sharing of electricity generated from rooftop solar. This allows a single renewable energy production source to be allocated to multiple units within one building. Elemental Customer Discovery - Alongside their Go-to-Market cohort and a customer discovery coach, Allume set out to explore value propositions for their key market segments. Then, they were able to test their refined value proposition with Elemental Excelerator’s Global Partners. Cameron Knox, Allume’s CEO, offered two pieces of advice to future applicants:

1. Do not fear that participation in a Hawaii-based accelerator will distract from focus on your domestic markets. The Elemental program will help you focus on those customers, and its Global Partners may reach into those markets.

Equity In Equity Out

Bring equity into your company through:

• Hiring: Diversity as a strategic goal as well as a just one

• Professional development: Inclusion & retention strategies

• Responsible supply chain: Build better products for more people

Incorporate best practices outside of your company through:

• Innovation Access: Provide equitable and affordable access to products

• Economic benefits: Create economic opportunities with career advancement

• Unintended Consequences: Identify & address unintended consequences early on

• Community Partnerships: Develop strong relationships with partners in communities

For example: Elemental Excelerator is working with Yerdle to become even more intentional when planning future facilities, so as to hire and develop a workforce to support the growing needs to move and process millions of items.

For example: Elemental Excelerator is working with Scoot to explore mobility services that service disadvantaged communities. This includes expanding their language offerings and adding a cash payment option, and would expand Scoot’s user base.



2. The depth of connection between Elemental and the Silicon Valley ecosystem was not clear to us upon being accepted into the Go-to-Market Track. But, it will be invaluable considering California is now sizing up to be a major market for our product.

Equity & Access TrackLast year, we accepted our first Equity & Access Track companies. Those companies are still in the early phases of scoping their demonstration projects. Some early wins include:

• Microvi was selected to treat nitrate for a multi-million dollar project with WesTech Engineering and the Cucamonga Valley Water District.

• Scoot announced plans to use Elemental’s funding to explore mobility services for low-income communities, which includes building out new language offerings for its app and cash payment options.

How do we evaluate companies?

For Go-to-Market, applications are scored out of 50 points; Demonstration and Equity & Access Track applications are scored out of 60 points (10 extra points allocated to the project proposal). During the selection process, we look for compelling technology, qualified and passionate teams, fit with Elemental Excelerator offerings, creative business models, and a fit into our regions of focus: California’s disadvantaged communities, Hawaii, or Asia Pacific.

� � �


Technology

Team

Market traction

Business model

Fit for Elemental

Proposed project

Demonstration only 10 10

1010

10

50

60

10


Elemental Excelerator Calendar

We require CEO engagement in our program plus at least one additional key person (e.g., CTO, COO, VP BD) for the three Elements your first year. We also require participation in at least one of the Elements in the following years to build relationships among companies and partners, share industry intel, and find new commercial opportunities within our ecosystem. Here are the three Elements:

Element 1: Kickoff Week

October 7-11, 2019 in Hawaii

Welcome! We introduce you to a large group of local and global stakeholders and work on further defining the Scope of Work for your Demonstration or Equity & Access project, or achieving your Go-to-Market Track objectives.

Element 2: CEO & Leadership Summit

March 5-8, 2020 in Hawaii

This Element fosters relationships with CEOs across sectors and stages. Our goal is to develop 100+ leadership teams who know each other, are highly collaborative, tapped into resources, and are accelerating impact as a result. Alumni companies are also invited to attend to create cross-cohort relationships and business collaborations.

Element 3: Elemental Interactive & Elemental Investor Pop-ups

May 14, 2020 in San Francisco, California

Interactive, in San Francisco, is our largest investor and partner event of the year, with over 250 investors and commercial partners. Most members of the current cohort present at Interactive each year, and selected alumni companies are invited to present as well.

Investor Pop-ups are pitch events in the Bay Area throughout the year, where we introduce you to investors, strategic partners, and customers.

These events are invite-only, and the audience is curated to provide high-impact opportunities before and after the event. You will also have an opportunity to propose attendees that are high value for you.

�



You’re accepted! What services will Elemental Excelerator provide? Services are tailored to the specific needs of each company and typically include:

• Executive-level introductions to California, Hawaii, and Asia Pacific businesses, utilities, government agencies, regulators, financial institutions, and other key stakeholders beginning at Kickoff Week in October. Our philosophy is to curate qualified and outcome-driven introductions, and provide ongoing relationship management with key decision-makers. We customize introductions to your business model and stage, with the objective of accelerating sales and partnership opportunities that will make a long-lasting impact on your organization.

• Access to 250+ angel investors, venture capital firms, corporate VCs, and strategic partners.• One-on-one time with Global Partners who have been handpicked for their interest in investments,

partnerships, pilots and/or acquisitions.• Investor in Residence: Regular office

hours to review fundraising materials, strategy, business model guidance, and more.

• Access to professional business coaches around hiring, HR, sales, and customer-discovery

• Support from 20+ Elemental Excelerator team members. The Elemental team is located in Hawaii and California, and we encourage you to think of us as an extension of your team. We extend our personal relationships with decision makers across California, Hawaii, and beyond; and support portfolio companies through challenges such as hiring, scaling, fundraising, marketing, policy transformation, etc.

• Inclusion in an ecosystem of talented technology entrepreneurs, which in the past our companies have used to find and hire key individuals from a trusted network, due diligence corporate partners, form investor circles to share off-the-record intel, and access advice from people who have overcome challenges similar to yours.

• Access to speaking and media opportunities at industry and investor events.• Our office is structured as a co-working space to provide “hot desks” available at no cost to our portfolio

companies for short visits.• Our communications team pushes messages out through media channels, which raises the profile of our

startups. Through our services, portfolio companies have been mentioned in top-tier and industry publications like Forbes, Fortune, and Popular Science; and local publications like Honolulu Star-Advertiser, Hawaii Business, and San Francisco Business Journal.


“Elemental Excelerator has been a keystone in Go Electric’s growth. We developed our business strategy through Elemental’s Go-to-market cohort, and subsequently closed a $4M Series A that was secured through Elemental introductions. Their intro to Hawaiian Electric led us to be invited to bid on Hawaiian Electric’s demand response RFP, and we are currently shortlisted for a major multi-million dollar award.”

Lisa Laughner CEO, Go Electric Cohort 6 - Demonstration Cohort 4 - Go-to-Market


https://elementalexcelerator.com/partners/

PARTNERS Meet Our Partners

The Partnership team’s mission is to bring our startups closer to industry and make collaborations happen at a pace that works for startups. We have developed close relationships with some of the biggest names in the business. Our partners are deeply committed to co-creating the future of energy and infrastructure, and using their strength to provide commercial opportunities for our portfolio companies.

Global Partners: Corporates interested in dealflow for investments and opportunities to partner with startups on demonstration projects.

Innovation Partners: Corporates and VCs interested in investment dealflow from our portfolio and pipeline.

How do our pipeline and portfolio companies work with our Global and Innovation Partners?• Commercial-scale or pilot projects: For example, Vector, New Zealand’s largest utility, is working with

Chargetrip (cohort 7) to deploy a smart navigation platform for electric vehicle (EV) owners. Chargetrip and Vector will help alleviate range anxiety and charging queues for EV owners, mobility challenges other parts of the world may face as EV adoption continues to rise.

• Investment Opportunities: Our partners have invested directly into our portfolio companies. For example, National Grid and TEPCO are both investors in our portfolio company Opus One Solutions. Companies that complete our qualifying application also receive access to our Global and Innovation partners. Each quarter, we prepare a dealfow document that our partners use to evaluate investment opportunities. We also facilitate direct introductions if there is mutual interest.

• This year, alongside our annual cohort recruiting efforts (applications are open from February 5 to April 12), we are launching a concurrent technology scouting campaign on behalf of our Global Partners. By applying to our program, companies will also be reviewed for potential fit within our partners' key investment and deployment focus areas. In many cases, our partners' technology interests are the same solutions that we target for our program within the energy, mobility, agriculture, water, smart cities, and circular economy sectors. While we review companies' applications to join our portfolio, a select number of applicants will be invited to our first-ever Ecosystem Deal Day on May 14th. You can find more information on Deal Day here.

Community Councils: Over the last ten years, we have developed long-term relationships in Hawaii and are building similar partnerships in California. We extend those relationships to our portfolio companies for customer discovery, project development and deployment. These partners include utilities, government agencies, local




businesses, educational institutions, non-profits, agriculture operators, land owners, and community organizations.

Hawaii: Elemental HuiIn Hawaiian language, a “hui” means to unite or to join. Throughout the State of Hawaii, we have developed a coalition of industry stakeholders, business leaders, policymakers, and investors grounded in Hawaii who support the mission of Elemental Excelerator. They provide technical, financial and in-kind resources to help our portfolio companies succeed. In addition to the Elemental Hui (logos below), here is a partial list of local organizations we work with:

CaliforniaIn October 2018, we hosted our first Town Square in Oakland for our Equity & Access cohort. We curated a group of 50 stakeholders from finance, government, water utilities, wastewater facilities, philanthropy, policy, and community organizations. Together they explored ways to deploy new energy, water, mobility, and waste solutions in California’s disadvantaged communities.


Sara Chandler Policy & Community Manager, California Elemental Excelerator

Town Square Oakland, CA


Technology Partners: Becoming an Elemental Excelerator portfolio company means you have access to our ‘Startup Toolkit’ that includes the following free and discounted services. Here is a partial list of such partners.

• Amazon Web Services provides lifetime credits up to $100,000 per startup.• Autodesk: Software for people who make things.• Carta: Allows private companies, from formation to IPO, to manage their equity electronically.• Momenta Talent: Boutique talent acquisition and advisory firm focused on helping early stage companies.• Google Cloud Platform: Designed to help startups build and scale using Google Cloud.• GTMResearch: As part of the Trailblazers partnership, Elemental Excelerator portfolio companies can gain

access to a wide network of utilities, technology vendors, IPPs, and regulators. • HubSpot: Software platform that helps you generate leads, close deals, manage your pipeline, and delight

your customers.• IBM Global Entrepreneur: Provides access to Watson, free cloud credits, community support, top-notch

learning resources, and more.• Mathworks: producer of MATLAB and a family of high-powered mathematical software applications,

provides free software for a one-year fixed term. Mathwork's has provided approximately $4 million of free software to Elemental companies.

• Silicon Valley Bank: Provides financial solutions for energy and resource innovation companies.• SolidWorks: Offers complete 3D software tools that let you create, simulate, publish, and manage your

data. • Zendesk: Offers tools like Email Ticketing, Help Center, Mobile SDK, and Chat are easy to set up and

enrich with data from other sources.



OUR STORY


2012 After extensive customer discovery-style interviews with other accelerators, national labs, startups, investors, and others, we found there was a critical gap in funding and resources for startups that have great technologies but need early adopters for proving product/market fit. We founded Energy Excelerator, a late-stage accelerator program, whose core focus was helping innovative companies commercialize their technologies, starting in Hawaii.

2013 We won a $30 million award from the Department of Defense’s Office of Naval Research to fund the commercialization of Earthshot technologies. Through this award we have been able to fund 50+ demonstration projects and 80+ portfolio companies

April 2017

We changed our name to Elemental Excelerator in partnership with Emerson Collective, an organization created and led by Laurene Powell Jobs that is dedicated to removing barriers to opportunity so people can live to their full potential. Our new name more accurately reflects the work that we do across systems — including energy, water, agriculture, and transportation — and our human-centered approach to innovation.

2018 The Department of Defense’s Office of Naval Research awarded an Elemental Excelerator an additional $30 million to continue funding technology deployment, and further expand our impact.

Today This is where you come in. We’re looking to fund the most innovative companies in the world. Will that be you?


FAQS

1) Does Elemental Excelerator only fund projects in Hawaii and California?

No, we also fund projects in the Asia Pacific region. We have funded at least nine international projects to date.

2) How do we know if we’re too early or too late for Elemental Excelerator?

Generally speaking, we are looking to select later-stage companies with the characteristics described on page 5. Our program is designed less for a certain stage of company and more for companies focused on commercialization at various stages. To give you an idea of the stage of companies we accepted last year, the average funding into Go-to-Market companies was $3.27 million with a low of $120,000, and an average revenue of $470,000, with a low of companies at the pre-revenue stage. The average funding of our Demonstration Track companies was $12.4 million with $1.4 million in revenue. If you have any specific questions related to the stage of your company, please reach out to us at: [email protected]. You can read about our most recent cohort on our blog for more details.

3) Can you provide more info on funding for the Demonstration Track?

Here are three things to note about the way we structure our projects:

A. Companies selected in these locations are eligible for up to $1 million of federal grant funding for product deployment. Typically we award projects on a smaller scale and will evaluate additional funding opportunities based on your scope of work and your proven ability to deliver milestones on time and within budget.

B. The funding is structured as a fixed-price, no profit, no fee contract. Translation: Your project budget will be structured based on actual costs.

C. Project funding is used to help buy down deployment risk. This means we do not pay for the whole project, but rather we will structure deployments under a 50-50 cost share model. As an applicant, you are required to find a customer or partner to fund the other 50% of the project.

Cost share, or partner/customer contributions to the project is the way our program evaluates market pull for solutions. Our strong preference is for cost share to come in the form of cash from customers. This is the strongest indicator of market demand for a solution. Secondary cost share sources can be 1) partners; 2) investors; 3) university, state, federal, or other funds. We will recognize in-kind cost share in special circumstances including labor from customers, discounted equipment/leases, and other contributions to the project. Demonstration Track applicants will be asked to describe a specific project to be funded by Elemental Excelerator. Here are 3 examples to illustrate the mechanics of the funding:

• Example 1: Company A has a total project cost of $1 million. Company A applies to Elemental with a proposal for $500,000. The other $500,000 to fund the demonstration project will come in the form of cash from the local transportation authority. Elemental funds the project and will not provide more than $500,000 to stay within the 50-50 cost share threshold.

• Example 2: Company B has a total project cost of $4 million. Company B applies to Elemental requesting $1 million in funding. Their maximum potential funding award cannot exceed $1 million and will not cover 50% of the project cost. Company B will need a customer, investor, and/or other sources to provide the remaining $3 million to fund the demonstration project.

• Example 3: Company C has a total project cost of $2 million. Company C already secured $1.5 million from a customer/investor/other source. Company C applies to Elemental requesting $500,000 to green-



mailto:[email protected]

https://elementalexcelerator.com/latest/articles/meet-the-20-earthshot-ideas-in-our-new-cohort/

light the project. In this case, the higher level of cost share demonstrates strong customer pull and is viewed favorably in the application process.

4) Can you provide more info on funding for the Go-to-Market Track?

Companies are awarded $100,000 of federal grant funding for customer discovery and validating the next stage of a company’s business model. This award is structured as a milestone and deliverable based firm-fixed-price contract. The scope of work and associated payments will be co-created by the company and Elemental Excelerator Portfolio Manager.

5) Can you provide more info on funding for the Equity & Access Track?

The Equity & Access Track funding is an investment tied to milestones. For this, we prefer simple agreements for equity ("SAFE") correlated to agreed upon program milestones. Y Combinator created the SAFE as a simpler alternative to convertible notes. It allows investors to purchase shares in a future round at a pre-negotiated discount (industry standard is 80%). We like this investment vehicle because it is founder-friendly and flexible, allowing us to work with companies outside of their usual fundraising cycle. And we hope that companies will find SAFE notes to be an easy and equitable way to partner with Elemental Excelerator.

6) I need to tell my Board about the warrant donation. Can you provide more information?

We’re a nonprofit organization and require an equity donation to our program for your participation in either the Go-to-Market (3% equity) or Demonstration Tracks (1% equity). It’s our philosophy that when you succeed, part of that success should go back to supporting the ecosystem for future entrepreneurs. We accept the donation through a standard 10-year warrant for either preferred or common stock. Although we provide you with grant funding, your donation of equity is not connected to the amount of funding we provide to you during the program.

Q: How is the warrant percentage determined? A: Over the years, we have found that we dedicate more team time and coaching services to Go-to-Market companies, thus warranting the higher 3%. Demonstration Track companies are typically later stage, thus requiring less support and the lower 1% warrant donation.

Q: How do you determine the strike price for the warrant?A: The strike price is determined by the price per share at the last round of financing.

Q: Is donating warrants to the program required? A: Yes, it is a requirement of our program. We do not accept companies into the program without a fully-executed warrant.

Q: What do you do with the warrants? A: It is our general strategy to pursue a cashless exercise of the warrant following an acquisition or IPO, but we may exercise early in special circumstances.

7) Which California communities are you targeting in Elemental Excelerator’s Equity & Access Track?


Jamila Jarmon In-House Counsel, Elemental Excelerator


We’re looking to invest in companies that have technologies and/or business models that increase equity and access to opportunity for low-income communities or communities where there’s a compelling need. We prioritize projects in disadvantaged communities as identified in yellow, orange, and red by the June 2018 CalEnviroScreen map below.

We are also interested in investing in companies that could provide jobs, internships, and/or educational opportunities to low-income communities. Our goal is to increase access to clean technology and employment opportunities in an affordable, equitable, and scalable fashion.

8) Our company was formed outside of the U.S. Are we still eligible?

Yes! We recruit companies from all over the world.

9) If we are accepted, do we need to move to California or Hawaii?

No, our portfolio companies come from across the U.S. mainland and international locations such as Spain, Australia, Canada, and the UK. We require portfolio companies to travel to California or Hawaii for the Elements described on page 9, and encourage companies to return for key meetings, project milestones, and relationship development. Our program is fundamentally flexible and relocation is not required.

10) How does Elemental Excelerator evaluate companies?

Here is some specific advice from our team, which follows our scoring rubric:

Technology • In your application, indicate that you have developed a scalable solution that shows growth potential beyond your home market

• Technology validated by a 3rd party - we don’t take technology risk• Technology driven by market demands



11) What specific technologies are you looking for this year?

Team • We look for diversity, experienced teams, deep knowledge of your industry, and a proven track record of execution

• We test for passion, grit, and coachability

Elemental Excelerator Fit

• Partners or projects deployed in one of our focus areas or has a clear case as to why your next target market is a fit with HI/CA/Asia Pac

• You are at the right stage of growth and have clearly laid out ways we can help you.

Business Model • We assess traction, value proposition, addressable market size, competitive landscape, revenue streams, and cost structure

• Pathway to a repeatable business model, deep knowledge of customer needs, and demonstrated customer traction

• A strong understanding of your first, second, and scale-up markets, as well as a strategy to enter those markets

Fit in California, Hawaii, and Asia Pacific

• Do your homework: knowledge of stakeholders, the policy landscape, regional customer requirements, potential barriers and appetite for your solution will differentiate your application

Demonstration and Equity & Access Tracks only: Proposed project

• We are looking to fund projects that can be completed in 12-18 months, with reasonable risk factors on the implementation side.

• We are looking for projects that are sustainable and have long-term impact. If implementation is successful, the partner or customer should be able to continue using the technology going forward. Our goal is to select Demonstration Track technologies that can scale by a minimum of 10x after completing the Elemental Excelerator program.



That’s a wrap!

We look forward to receiving your Qualifying App and getting to know you through the application process. A few reminders on our timeline:

More questions? Email: [email protected]

February 5 - April 12 @ 5 pm PT Qualifying Apps will be open - take 5 minutes to apply!

April 22 - May 24 Round One (invitation only)

May 14 Ecosystem Deal Day - more info here and on page 11

May 28 - August Due diligence and cohort selection

August 2019 Offers for our next cohort will be sent

October 7-11, 2019 Kickoff Week in Honolulu for all tracks



mailto:[email protected]




applicant packet | cohort 8 - elemental excelerator · 2019. 5. 28. · our goal is to bring...

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