Andy's Perspective

Information technology has the potential to transform the energy industry - creating a new generation of industry leading companies, dramatically improving energy efficiency, reducing pollution and producing tens of billions of dollars a year in cost savings. As strategic investors, with deep industry knowledge and a strong network of contacts, we expect to play an important role in helping to identify the most promising of these new, cutting edge technologies, nurturing their development and speeding their deployment, in the U.S. and in other countries. Over the next 3-5 years we believe these companies have the potential to revolutionize the way in which energy is procured, distributed and used in the energy markets throughout the world, with U.S.-based companies taking the lead.

Jeff's Perspective

There are a number of factors driving fundamental change in the energy industry. Demand for energy is projected to increase at rates well above projected increases in supply. At the same time, the end use markets for energy are becoming more diverse, and electricity is assuming a larger share of the market as compared to fuels. Deregulation of the natural gas and power industries has fostered significant restructuring. Growing concerns over greenhouse gases and other environmental concerns have led to ever more stringent controls on industry emissions. Recent mega-mergers, particularly among the multi-national oil and gas companies, have resulted in fewer, larger, and less nimble players in that sector of the industry. And, events in the Middle East have further heightened political sensitivities regarding energy – an industry that has never been a stranger to politics.

As the industry moves to respond to the various forces of change, there can be little doubt that technology will play a key role. The energy industry has always relied on technology to find new sources of supply, control costs, manage vast amounts of information, and address environmental concerns. Increasingly, however, the industry can be expected to rely upon technological innovation from non-traditional sources. Constraints within the industry related to capital resources, personnel, and management systems lend support to this conclusion. This circumstance creates opportunity for entrepreneurs to develop business solutions for the energy sector relying on disruptive technologies transferred from other industries, academia, or government research labs, or generated through their own creativity. These entrepreneurs will require capital and management support to help them develop successful business enterprises.

Terry's Perspective

The energy world stands at an exciting and unusual juncture. Over the last several decades, we have seen some new initiatives in the energy world succeed, but many have failed. Due to ill-equipped regulators, we've seen increasing skepticism that there will be any meaningful market structures to evolve. We have seen indecision and stalling on the part of the incumbent utilities. Yet with the hard lessons of yesterday, all remain optimistic about the future of the energy industry. It is, perhaps, the most vibrant new market opportunity for the immediate future.

Led by a unique surge over the last five years, we are seeing a significant increase in innovative applications of technology and e-commerce throughout the energy industry. We've seen a plethora of investments in exchanges, web-based information portals, new marketing channels, distributed generation, and alternative energy. Perhaps most crucial is the embedded, intelligent device market, where new products and offerings will flow from unprecedented levels of access to real-time information. These technological innovations will dramatically shift the customer value proposition as it exists today.

It was against this backdrop that EVG was created. By bringing together experts from the regulatory, financial, legal, media, and investment areas, EVG has formed a comprehensive knowledge base and skill set to uncover great investment opportunities. Through these investments, EVG can act as a conduit for innovative energy companies to transfer their ideas to the marketplace.