Comments on: Opinion: The problems with the DOE green car startup loans http://gigaom.com/2012/03/08/opinion-the-problems-with-the-doe-green-car-startup-loans/ Thu, 23 May 2013 05:18:18 +0000 hourly 1 http://wordpress.com/ By: Katie Fehrenbacher http://gigaom.com/2012/03/08/opinion-the-problems-with-the-doe-green-car-startup-loans/#comment-818330 Sun, 11 Mar 2012 19:58:42 +0000 http://gigaom.com/?p=496146#comment-818330 Thanks guys. All good points!

]]> By: Mark http://gigaom.com/2012/03/08/opinion-the-problems-with-the-doe-green-car-startup-loans/#comment-818279 Sun, 11 Mar 2012 15:31:46 +0000 http://gigaom.com/?p=496146#comment-818279 Nice article Katie! Investments in new technology/companies like this happen all the time in the defense world, but there’s not as much sunshine and scrutiny on that sector (especially from the Republican side of the aisle). The amount of cash the DOE invested into technologies that advance our society is a pittance compared to our defense budget.

The ARRA funding really put a big challenge on the DOE and turned them into a large VC outfit for several emerging technology areas. They had to scale up fast and make quick decisions to get the money out to create jobs…of course some of the investments didn’t pan out…that’s risk compounded on risk. In hindsight, it would have been better to have seasoned VCs like Kleiner Perkins create a non-profit to administer this program…but even then it would have been a new organization.

In the end, it think it was all good…the program started and tested new ideas and technologies. In life, timing is everything and some of these ideas were too early or would have been more successful in a better economy with higher fuel costs. It beats building bombs any day.

]]> By: yota http://gigaom.com/2012/03/08/opinion-the-problems-with-the-doe-green-car-startup-loans/#comment-818121 Sun, 11 Mar 2012 03:57:09 +0000 http://gigaom.com/?p=496146#comment-818121 Bright was not a good Idea. Ford has the transit connect EV, I think that is a much better bet than a from scratch Platform. I would not have given Bright a loan!

]]> By: Nick Prudent http://gigaom.com/2012/03/08/opinion-the-problems-with-the-doe-green-car-startup-loans/#comment-817551 Fri, 09 Mar 2012 18:50:17 +0000 http://gigaom.com/?p=496146#comment-817551 Great article as always. I would add a fifth point:

5. Green tech investors should not make the DOE loan a condition for investing. The government i not a good filter for successive startups.

It appears that Bright was trapped in this impossible situation. As for Fisker, their investors wanted the loan in order to avoid/delay diluting their shares.

- Nick -

]]> By: Rich http://gigaom.com/2012/03/08/opinion-the-problems-with-the-doe-green-car-startup-loans/#comment-817318 Fri, 09 Mar 2012 02:46:38 +0000 http://gigaom.com/?p=496146#comment-817318 I suspect a lot of people got caught up in the idea (perhaps inspired by the Leaf) that the market for EVs was driven by an inevitable technology shift, and therefore believed money would flow to EV producers rapidly. But Carlos Ghosn has said that EVs will experience growth gradually.

]]> By: LEAFican http://gigaom.com/2012/03/08/opinion-the-problems-with-the-doe-green-car-startup-loans/#comment-817240 Thu, 08 Mar 2012 22:30:29 +0000 http://gigaom.com/?p=496146#comment-817240 Throwing money at start-ups, especially without doing due diligence to ensure a successful business model, is a recipe for failure. On the other hand loaning money to established companies to develop new technologies in a timely manner pays off. Loans to Ford and Nissan will be paid back and both will have US made EVs to show for it… even if Ford’s has no cargo space.

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