Silicon Valley at the Top of the Global Startup Ecosystem in 2023

The 2024 Global Startup Ecosystem Report (GSER) by Startup Genome and the Global Entrepreneurship Network was released at London Tech Week, in collaboration with the Founders Forum, Informa Tech and London & Partners. Presented by Stephan Kuester, Managing Partner at Startup Genome, the GSER analyzes data from over 4.5 million companies across 300+ entrepreneurial innovation ecosystems and features rankings that indicate which ecosystems are currently driving innovation and deep knowledge about startup trends around the world.

Global key findings from the the 2024 GSER include:

• Top three global ecosystems: Silicon Valley remains at the top, followed by New York City and London tied for #2.
• The number of new unicorns in 2023 was down 58% from 2022 and 87% from the 2021 peak. With 15 unicorns, Silicon Valley again led all ecosystems for the most new unicorns in 2023, though this was down 80% from 2022. The Tashkent, Lyon, and Rhineland startup ecosystems welcomed their first unicorns in 2023.
• Series A funding amount in 2023 was down 46% from 2022, and the value of large exits ($50M+) fell 47% over the same period.
• In 2023, the Series A funding amount share for Top 40 ranked GSER 2024 ecosystems was 65%, down from 79% for these ecosystems in 2019. The share of Series A funding amount for the Top 100 Emerging Ecosystems reached 19% in 2023 vs. 13% in 2019.
• Q1 2024 has projected higher Series A funding amount and deal count than Q4 2023.
• Generative AI saw a surge in funding, with nearly 20% of all VC funding in 2023 going to GenAI-focused startups. GenAI VC funding increased 3x in 2023 compared to 2022. Deal counts nearly doubled.
• In 2023, more than half of new unicorns were in the GenAI and Deep Tech sub-sectors, a higher rate than in 2021.
• Late-stage Cleantech startups raised 2.5x more funding in H2 2023 than in H1 2020. Europe has outperformed the U.S. and China in terms of Cleantech Series A funding growth from 2021 to 2023.
• Seoul moved up three spots, now ranked #9, entering the Top 10 ecosystems this year.
• Tokyo has entered the global Top 10 for the first time, marking the most significant improvement among the Top 10 ecosystems.
• The top two Chinese ecosystems Beijing and Shanghai, have dropped in the overall rankings to #8 and #11. Shenzhen has shown impressive growth, moving up seven spots to rank #28.
• Europe is the most represented region in the Emerging Ecosystems Ranking, with a 42% share in the Top 100 Emerging Ecosystems, followed by North America with 27%.
• Madrid moved up 12 ranks, claiming to #1 in the Emerging Ecosystems Ranking.
• Barcelona moved up two positions in the Emerging Ecosystems Ranking, reaching #2.
• Athens has entered the Top 100 Emerging Ecosystems Ranking, reaching the 51-60 range in 2024.
  
• Greater Lausanne Region moved up 16 positions, reaching #11 in the Emerging Ecosystems Ranking.
• Jakarta (#6) and Metro Rhein-Ruhr (#9) both entered the Top 10 Emerging Ecosystems Ranking.
• Melbourne is ranking as the #32 Global Startup Ecosystem, moving up one spot from GSER 2023.
• Mexico City has shown impressive growth, reaching the 21-30 range in the Emerging Ecosystems Ranking from the 41-50 range in 2023.
• The top five ranking sub-Saharan African Ecosystems are Nairobi, Lagos, Cape Town, Johannesburg, Accra.
• Tel Aviv is the only MENA ecosystem ranking in the Top 40, globally moving up one place to #4 (tied with Los Angeles).

Now in its 12th year, the GSER provides insights into the world's leading startup ecosystems, emerging trends, and key challenges facing entrepreneurs. As explained in Startup Genome's press release, "The 2024 edition ranks the top 40 global ecosystems, a ranking of emerging ecosystems, and expanded regional rankings. The report, driven by a consortium of representatives from 40+ countries, looks at the current state of startup activity and related investment. It also highlights startup communities from a regional perspective, separately ranking ecosystems in Asia, Europe, Latin America, MENA, North America, Oceania, and sub-Saharan Africa. Contributions from thought leaders further enrich the report's extensive, evidence-based findings, which are the product of over a decade of Startup Genome's independent research and policy work."

I appreciate how the GSER is designed to provide valuable perspective on the global startup landscape and actionable recommendations for entrepreneurs, investors, policymakers, and other stakeholders looking to drive innovation and economic growth even in these challenging times.

What are your thoughts about GSER's key findings?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Helping Policymakers and Stakeholders Understand Risk and Design Effective Policies for Urban Resilience

According to a report developed by Economist Impact and supported by the Tokio Marine Group, "The world is facing unprecedented challenges. Extreme weather events, from hurricanes and wildfires to flooding and heatwaves, are becoming more frequent and their effects more devastating." Furthermore, "Emerging risks like cyber-attacks loom larger as technology dependence deepens. Our cities are exposed to all of these risks and more. Lives and livelihoods depend on our ability to understand and mitigate the evolving threats to our urban centers."

The Resilient Cities Index highlights three phases to resilience. "Preparation and mitigation come first. Understanding the risks, how they are evolving and taking steps to minimize their impact is essential if cities are to avoid the worst. The second phase is response, necessitating swift reactions and timely assistance to save lives and diminish the impact when disasters occur. Last is recovery, emphasizing the need to learn from tragedies and rebuild stronger, better-equipped communities for future shocks and stresses."

Aiming to help policymakers and stakeholders understand risk and design effective policies for urban resilience, Economist Impact developed a benchmark of 25 cities. To gauge the resilience of these cities, the report's authors took measurements across four pillars: critical infrastructure, environment, socio-institutional and economic. This white paper combines index analysis with expert commentary to identify patterns, common strengths, deficits and best practices across index cities.

Key findings from the inaugural edition of the Resilient Cities Index include:

• Cities performed well in the critical infrastructure pillar of the index, but there are some weak points that require strategic focus. The cities with the highest scores were Dubai, Shanghai, New York and Singapore. These capital-rich market locations have greater opportunities to develop new infrastructure, compared with European cities constrained by decades- or centuries-old systems. Within this pillar, digital infrastructure and transportation were a drag on cities' resilience.
• Cities that use data and technology to create operational efficiencies and share information with their citizens—i.e., smart cities—are better at dealing with shocks. Patchy internet quality, which can impede access to digital services, pulled down the overall resilience score in the critical infrastructure pillar. Digital technologies and advanced data analytics can help to predict risks, optimize existing systems and keep the public informed. Greater digitalization comes with risks, especially to critical infrastructure, but most cities in the index have built safeguards against this.
• Most emerging economy cities lack adequate regulatory frameworks, strategies and incentives for futureproofing infrastructure. Only a few cities in the index achieved high scores for future-proofing, which involves ensuring infrastructure preparedness for shocks while managing current and future emissions. One way cities can future-proof is by incentivizing sustainable designs for buildings, such as installing green roofs, incorporating modularity and retrofitting for energy efficiency—a practice only found in high-income cities in the index.
• Efforts to achieve environmental resilience are led by innovative solutions. Cities are employing a variety of nature-based solutions to adapt to flooding and heat stress, from planting rooftop vegetation and mangrove forests (green infrastructure) to rehabilitating wetlands (blue infrastructure). Cities are also decarbonizing by adopting renewable energy and negative emission technologies, such as carbon capture, storage and removal. However, the scalability of these technologies is likely to be challenging for resource-constrained emerging market cities.
• Cities demonstrated poorer performance in the socio-institutional pillar, mostly due to income inequality and poor health and well-being metrics. Only nine cities have a single, comprehensive plan to support vulnerable groups. However, one bright spot is that cities are promoting a culture of readiness to act in the event of a disaster. The majority of cities scored highly on this or are working to improve their readiness.
• Cities had the lowest average scores in the economic pillar, dragging down some cities that performed well in other areas. The low penetration of financial safety nets hinders safeguards against threats and undermines a city's ability to recover from shocks. Another aspect of economic resilience is a city’s ability to incubate innovation, which can foster solutions to a range of problems, from congestion to water stress. Unfortunately, most cities scored poorly on the indicator for start-up ecosystems.

The report's conclusion points out that "A resilient city is not only prepared for shocks but has the ability to bounce back and thrive. Recognizing both existing and looming threats will help cities better understand their vulnerabilities and design targeted actions. However, building such cities requires stakeholders from government, businesses and communities, as well as individual city-dwellers, to engage in holistic resilience thinking at community and municipality levels."

Moreover, "While resilience needs to be tackled in myriad ways, a number of critical strategies have been identified in the course of this research and are summarized below."

• Empower the community to be active participants. This is contingent on the democratization of information. All city-dwellers should have equal access to government information, including what to do in an emergency. Some cities, like Singapore, do this very well, using digital channels to disseminate information to everyone simultaneously. Fostering a culture of readiness and the ability to manage hazards will require investment to train and educate people at governing and grassroots levels to be stewards of their city. Recognizing that information is key, municipalities could consider partnering with a digital platform to minimize misinformation and ensure the city moves in one direction, despite disruption.
• Social cohesion efforts need greater advancement across the board. Cities are nothing without the people who inhabit them. Greater attention to social cohesion will help to ensure cities are less fragmented, adaptive and better prepared for shocks. City governments should overlay resilience efforts with initiatives that aim to improve the lives of urban residents. This process should be driven by city leadership and engage civil society. The majority of cities in the index have some way to go to strengthen social cohesion through integration programs for society's most vulnerable.
• Early warning systems (EWS) are vital for safe cities but investment is needed to hit the 2027 target. National governments and municipality leaders will have to collaborate to ensure universal early warning systems coverage by 2027. There are two challenges that need to be met. First, capital is needed to bridge the investment gap for technologies with a greater push for the development and adoption of frontier and horizon tech–from drones to AI. Second, governments need to facilitate the necessary legislation to connect these EWS to emergency and response plans to ensure there are protocols and resources in place to deal with climate extremes and hazards. Community acceptance and responsiveness to early warnings are essential in the effectiveness of EWS. This can be achieved through systematic training and education and awareness programs.

What do you think of the report's findings and conclusions? Do you have additional recommendations on how policymakers and stakeholders understand risk and design effective policies for urban resilience?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Examines the Factors Enabling Businesses in Sub-Saharan Africa to Scale Up

Having done business in the world's second largest continent, I concur with a report's assertion that the "rise and fall of interest in Africa has been contingent on its promise for growth." Published by The Economist Intelligence Unit (The EIU), the report adds: The demographic advantage and increasing per-head income spur investors but the regulatory complexities and political risks they encounter turn sentiment. Businesses on the continent are innovative and eager to expand but this is often impeded by limited access to new markets and growth finance. Delivering on the promise of economic growth is closely tied to the ability of home-grown businesses to scale up, so policymakers must establish an environment that enables businesses to thrive.

Sponsored by the Dubai Chamber of Commerce and Industry, Promise and perils: Scaling up businesses in sub-Saharan Africa "examines the factors enabling businesses in sub-Saharan Africa (SSA) to scale up." The report considers "the policy environment, state of technology and infrastructure, and financing options that allow businesses to access markets in other countries on the continent and beyond. In addition, it explores the role of foreign investors in facilitating business expansion, focusing on those based in the" six Gulf Co-operation Council (GCC) countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The report's key findings include:

• Policies for regional integration are helping African businesses gain greater access to other markets.
• Expanding telecommunications networks are facilitating the growth of internet connectivity, mobile money and new digital services that build on it.
• Progress in transportation projects are improving physical connectivity within and between countries in Africa and driving operational efficiencies.
• Foreign companies with expertise in infrastructure development and emerging technologies are capitalizing on Africa's scaling-up potential.
• High interest rates offered by domestic banks are a perennial problem for businesses seeking growth finance.
• Alternative sources such as venture capital (VC), private equity (PE), development finance institutions and even crowdfunding have been more appealing.
• Corporations are fueling African business expansions, through direct stakes and VC funds.
• Gulf investment is concentrated in East Africa, with the UAE leading the charge.

The report correctly explains that "financing has long been a bugbear. A quarter of African" small and medium-sized enterprises "surveyed by the European Investment Bank between 2011 and 2017 said access to finance was their biggest obstacle. Improving the depth, speed, cost and variety of financial tools is central to business growth, whether it be from commercial banks, PE, VC, development finance institutions and even crowd-funding."

Furthermore, "PE, which tends to focus on more established firms looking to scale up, closed 1,022 deals worth US$25bn across Africa between 2013 and 2018" as reflected in the chart below. "VC also seems to be gathering a healthy head of steam: African start-ups enjoyed an almost fourfold increase in VC funding in 2018, raising a record US$725m across 458 deals. They are receiving bigger tickets above the US$5m mark too."

"In terms of investment through PE and VC," the report notes "information technology (including internet services), financial services and consumer goods and services have attracted the highest volume of investments over the past five years." As indicated in the chart below, "The fintech sector was, in 2018, by far the largest draw for finance-raising. The data show that EdTech is the fourth biggest draw, which, combined with cleantech at second, shows the centrality of social and environmental narratives to business in Africa. Other sectors of note in Africa include mobility, which is drawing interest from foreign start-ups."

I agree with the report's conclusion that "Africa's growth recovery offers hope the continent can return to its GDP surge in the earlier part of the millennium—but only if its businesses can scale within and across borders. Policy improvements, including trade and customs unions, financial harmonization, and transport integration, are helping companies build regional footprints."

Encouragingly, "Start-ups are attracting VC from some of the world's biggest brands and reaching the international stage through global IPOs. But a perception challenge remains, with many citing political risks as an impediment."

Lastly, "As businesses on the continent scale up, foreign investors are playing an important role on two fronts: building infrastructure that enables African businesses to scale and investing directly in SMEs to facilitate growth."

Do you agree with the findings of the report?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Tech Summit Aims to Connect Leaders From China and Washington State

I attended the Seattle Biz-Tech Summit on October 19, 2013 in Bellevue, Washington. Produced by Kirkland, Wash.-based Nan Hai USA Co. Inc., the conference attracted leaders from companies operating in China and Washington state, respectively, from the information and communication technology, clean tech, and biotech sectors. This blog post will focus on a panel I attended entitled "Commercial Gateway to China: An update on US/China Trade and Investment." (This is a picture of me standing in front of the China Telecom Americas exhibit at the Seattle Biz-Tech Summit.)

In an interview by Dahlia Peterson of contextChina, Nancy Yang, Nan Hai's senior manager, explained that "the aim of the summit is to provide a 'dynamic platform for both large companies and SMEs (Small and Medium Enterprises) to develop business opportunities, learn about cutting-edge innovations, identify emerging markets, expand their business, and showcase their products and services to hundreds upon hundreds of summit attendees.'"

In her article published by contextChina on October 30, 2013, Wen Liu notes that the participants of the "Commercial Gateway to China" panel consisted of "some of the most experienced business leaders in the region, including Sidney Rittenberg, China business consultant and life-long China watcher; Robert Kapp, consultant and founding executive director of the Washington State China Relations Council; Ben Zhang, CEO of Greater China Industries; and Karl Kou, vice president of Huawei USA. Serving as moderator was Mark Wen, a commercial strategy manager at the Port of Seattle and president of the Washington State China Chamber of Commerce."

Sidney Rittenberg began, as Ms. Liu writes, by "sharing with an audience of American and Chinese business people his wisdom in achieving success in China. To understand China, he said, one has to look at the country from its own context, not try to apply the formulas that work in the American economic paradigm to the Chinese paradigm. When doing business in China, one should stay out of politics completely, he advised. 'When you are in another country,' he said, 'you are expected to obey that country's laws even if you think they are horrible laws.' Rittenberg also believed that Google made a tragic mistake by pulling out of China, as it could have had an enormously positive influence in Chinese society if the company had stayed." Having done business worldwide, I can attest to the importance of respecting each country's customs or laws no matter how odd or unjust they may appear to me.

Ms. Liu says that "an audience member, the owner of a small tech company operating in China, voiced the worries of many companies when he said, 'IP protection is still what keeps me up at night.'" That audience member was me (see photo on the right).

Robert Kapp responded that intellectual property problem is unresolved and it may never get fully resolved. "The standard answer, he said," notes Ms. Liu, "is that as China rises up the technology and scientific sophistication ladder, and as the Chinese create more and more intellectual property, they would want IP protection themselves. Before that, however, American companies would do well, 'to be very, very, very thorough in protecting the access to that mixture that constitutes intellectual property,' he said."

The Seattle Biz-Tech Summit was interesting and relevant to the objectives of my company, ROI3, Inc., as my colleagues and I prepare to fully introduce our suite of digitally-animated mLearning apps and content for smartphone and tablet users in China. I look forward to attending the next conference scheduled for September 27, 2014.

Here is a news report from China about the conference:


Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

A Time to Reflect

2009 served as the first full year of this blog and I want to thank all of you for taking the time visit. I appreciate your comments, whether they are made publicly and privately, and your suggestions for future blog topics. Starting with the first entry posted on August 10, 2008 about creating sustainable solutions in resolving the crisis in Sudan, this blog continues to serve a resource for understanding the problems people and companies face, both manmade or naturally occurring, and formulating solutions through innovative products and services. (Photo of the Space Needle in Seattle courtesy of Jim Bates/The Seattle Times)

Over the past year, we have witnessed great advancements in information and communications technology, renewable energy, and clean technology. Mobile phones and inexpensive portable computers are bridging the digital divide in industrialized and developing nations alike. We are seeing great advancements in mobile applications in education, telemedicine, and agriculture, and the improvement of renewable energy technologies that will provide the energy needs for millions, or perhaps billions, of people.

Several events will take place in 2010 that will focus on the intrinsic value of the individual and highlight the power of collaboration. Sports often bring together individuals with start physical or ideological differences to focus on a common element. Vancouver, Canada will host the Winter Olympic Games from February 12-28, 2010 and South Africa will host the 2010 FIFA World Cup, which I hope the latter will highlight the positive attributes of the host country and the entire African continent. Furthermore, Shanghai, China will host Expo 2010 from May 1 through October 31, focusing on the theme “Better City, Better Life.”

Lastly, according to a United Nations press release dated December 21, 2009, Secretary-General Ban Ki-moon "called on world leaders to attend a summit next September to boost efforts to achieve the Millennium Development Goals (MDGs), which seek to slash a host of social ills, ranging from extreme poverty and hunger to maternal and infant mortality to lack of access to education and health care, all by 2015." The MDG summit will take place at the UN headquarters in New York. And the world will look for tangible results at the next annual climate conference to be held in Mexico City in November 2010.

Lest we forget the ongoing conflicts in Afghanistan, Democratic Republic of Congo, Guinea, Haiti, Honduras, Iraq, Myanmar, Pakistan, Somalia, Sudan, Venezuela, and Yemen. As you read this entry, millions of innocent people continue to suffer as the result of armed conflict or environmental strife. We should remain optimistic, however, that as technology has enabled people to connect in ways unimaginable just a few years ago, we can continue to develop innovative ways to educate and empower the most vulnerable populations.

May 2010 bring peace and prosperity to all people worldwide.

U.S. Energy Department Supports Solar Energy Technologies with $87 Million Investment

On October 8, 2009, United States Department of Energy (DOE) Secretary Steven Chu "announced up to $87 million will be made available to support the development of new solar energy technologies and the rapid deployment of available carbon-free solar energy systems. Of this funding, $50 million comes from the American Recovery and Reinvestment Act. The 47 projects with universities, electric power utilities, DOE's National Laboratories, and local governments have been selected to support use of solar technologies in U.S. cities, help address technical challenges, ensure reliable connectivity with the electrical grid, and train a new generation of solar workers to install and maintain solar energy systems."

While I am concerned with the expansive spending created under the American Recovery and Reinvestment Act, I am encouraged to see investments made in developing solar energy technologies. As I have written in this blog, clean tech research and development is quickly becoming a driving force in the American economy.

DOE's press release further explains, "The selected projects will help accelerate the commercialization of solar technologies in an effort to achieve cost-competitive solar electricity by 2015, in addition to developing advanced solar technologies for the future. Projects focus on both technology improvements and the elimination of market barriers to help make solar electricity accessible to a wide variety of consumers."

The projects selected for negotiation of awards are in four categories:

• High Penetration Solar Deployment. Seven projects will model, test, and evaluate the impact of large amounts of photovoltaic (PV) electricity on the reliability and stability of the electric power system. These projects will help pave the way for broader adoption and growth of grid-tied solar energy systems by improving understanding of the impact of PV electricity on the grid;
• Solar America Cities Special Projects. As the load centers of energy use across the nation, cities play a strategic role in accelerating solar technology adoption at the local level. Sixteen cities have been selected for projects that will address specific barriers to solar adoption in urban settings and support innovative approaches that can be widely replicated. Many cities will use this funding for multiple efforts;
• Solar Installer Training. Nine colleges, universities, and local organizations have been selected to lead regional solar installation "train-the-trainer" programs. The projects will support a national ramp-up and coordinated network of training programs. This funding will help address the critical needs for qualified solar energy system installers; and
• Research projects at DOE National Laboratories. Fifteen projects at DOE National Laboratories will seek to improve technologies, devices and processes for both the PV and Concentrating Solar Power (CSP) industry. PV projects focus on development of next generation devices and processes, as well as supply chain technologies for the entire PV system. CSP projects focus on improved energy storage technologies to enable consistent and reliable energy generation.

Green Living: Avoiding Asbestos

By James O’Shea

Going green used to be considered expensive and a luxury for those who could afford the trend. Now it appears that we are learning that not only is adopting more environmentally conscious attitudes good for our economic situation, but also our….health? Yes, if we dig a bit deeper we can see that dirty industries and backwards policy is actually harming the health of the earth for our children and the health of her inhabitants today.

There are two levels of health consequences associated with dirty industry, both direct and indirect. The direct consequences are examples like increased asthma rates in areas with high smog indices. Chlorofluorocarbon release into the atmosphere has shown to decrease the filter of direct sunlight on the planet, resulting in more concentrated ultraviolet light reaching the surface of the earth. Perhaps it is no surprise then that in countries with depleted atmospheric gas, skin cancer rates are among the highest in the world.

The indirect health consequences are harder to see immediately, but closer examination reveals that these are, in fact, perhaps the most hazardous. Bi-products of dirty and backwards industries, such as coal and oil processing, include cancer causing substances like asbestos and benzene. A U.K. study conducted in 2002 indicated that coal and oil industry workers are at a much higher risk of developing mesothelioma and leukemia.

Can we really afford to continue on the path we were on before? Investment in clean industry means not a healthier planet for our children and grandchildren, but also a healthier place for us to live today.

James O' Shea is a public outrach coodinator with the Syracuse, New York-based Mesothelioma and Asbestos Awareness Center (www.maacenter.org), the web's leading resource for asbestos exposure. The opinions expressed in this commentary are solely those of Mr. O'Shea.

U.S. Government Supporting Clean Tech Businesses

The United States Department of Energy (DOE) offered a $535 million loan guarantee for Fremont, California-based Solyndra, Inc. "to support the company's construction of a commercial-scale manufacturing plant for its proprietary cylindrical solar photovoltaic panels. The company expects to create thousands of new jobs in the U.S. while deploying its solar panels across the U.S. and around the world." (Photo courtesy of Solyndra)

In The New York Times article, "Energy Department Issues First Renewable-Energy Loan Guarantee," the DOE "has tentatively awarded its first alternative-energy loan guarantee, breaking a four-year logjam in the federal loan program." Clean technology companies may want to consider taking advantage this program to expand business operations including product research and development.

The Energy Policy Act of 2005 (EPAct05) authorizes the DOE to issue loan guarantees to eligible projects that "avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases" and "employ new or significantly improved technologies as compared to technologies in service in the United States at the time the guarantee is issued."

Under the Recovery Act Program, the United States Congress has authorized the DOE to spend $16.8 Billion for Energy Effeciency and Renewable Energy. In addition, $6 Billion is allocated to underwrite up to $60 Billion in loans under DOE's Loan Guarantee Program.

According to the DOE's press release, "Solyndra's photovoltaic systems are designed to provide the lowest installed cost and the highest solar electricity output on commercial, industrial and institutional roof tops, which are a vast, underutilized resource for the distributed generation of clean electricity. Solyndra's proprietary design transforms glass tubes into high performance photovoltaic panels which are simple and inexpensive to install. By replacing power generated from fossil fuel sources, the electricity produced from the solar panels will reduce emissions of greenhouse gases."

Solyndra is currently ramping up production in its initial manufacturing facilities. Once finalized, the DOE loan guarantee will enable the company to build and operate its manufacturing processes at full commercial scale. Solyndra estimates that:

• The construction of this complex will employ approximately 3,000 people;
• The operation of the facility will create over 1,000 jobs in the United States;
• The installation of these panels will create hundreds of additional jobs in the United States.
• The commercialization of this technology is expected to then be duplicated in multiple other manufacturing facilities.

The loan guarantee to Solyndra is a "conditional commitment" pending approval by the DOE's Credit Review Board. Similar to homebuyers who have been approved for a loan are required to meet certain conditions before closing, the conditional commitment will require Solyndra to meet an equity commitment as well as other conditions prior to closing.

The DOE explains its review process: "Before offering a conditional commitment, DOE takes significant steps to ensure risks are properly mitigated for each project prior to approval for closing of a loan guarantee. The Department performs due diligence on all projects, including a thorough investigation and analysis of each project’s financial, technical and legal strengths and weaknesses. In addition to the underwriting and due diligence process, each project is reviewed in consultation with independent consultants."

DUX Spray Gun: A Model of the Green Tech Evolution

On a recent trans-Pacific flight, I had a conversation with a woman about the current global economic crisis. She asked, "What sectors, if any, will benefit the most during the economic crisis?" I responded that while some sectors will feel the impact more than others (i.e, financial and retail), I think renewable energy and green (clean) technology will come out stronger than ever.

In the United States, President-elect Barack Obama has repeatedly explained that his economic plan calls for a significant increase of investment in the "New Economy," which include the renewable energy and green technology sectors. Other countries like Germany, Brazil, United Kingdom and even China are looking at making large investments in renewable energy and clean tech.

One benefit of traveling on long flights is having uninterrupted time to review documents. In doing so, I found documents from a consulting project I worked on advising DUX Area, Inc., a Tukwila, Wash.-based green technology company, on identifying strategic international markets conducive to increasing market capitalization and strengthening market position. In explaining the company's mantra, DUX's CEO Kevin Kelley says DUX spray guns bring the global coatings application market a technology that exceeds transfer efficiency expectations while providing coating specialists the finish and productivity output they demand.

The DUX spray gun is a prime example of the green technology evolution--taking an existing product and redesigning it into a product that is good for the environment and business profits alike. DUX's competitors who produce High Volume Low Pressure (HVLP) and other spray gun technologies use 1,800-2,500 pound-force per square inch gauge (psig) to apply the paint or coating application, whereas DUX's spray guns use only 10-11 psig. DUX's patented Advanced Laminar Airflow Technology reduces booth fog and blowback from the target, the two leading causes of coatings waste. These reductions create a healthier work environment because less material is wasted, fewer volatile organic compounds (VOCs) and other hazardous pollutants are released into the atmosphere. In addition to reduced coating usage and decreased cleanup costs, other return on investment results include faster production speed and energy savings.

DUX designed three spray guns: Pressure Feed, Gravity Feed, and Automatic (pictured here). I had the opportunity to test the Gravity Feed spray gun (pictured above) and was amazed with its lightweight and balanced design, which facilitated the ease of spraying paint across a large surface. DUX guns can be used a variety of industries including transportation, industrial equipment, wood, plastics, aerospace, military, marine, and architectural.

World governments are hedging their investments on green technology to increase jobs while fighting climate change. We need to invest in the talented people similar to those you will find at DUX who produce products or provide services that will play an integral part in the new "green" economy.

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.