U.S. Department of Energy & Recovery Act Funding: Bridging the 'Valley of Death'

Posted: 2 Feb 2012

See all articles by Michael J. Roberts

Michael J. Roberts

North Carolina State University - Department of Agricultural & Resource Economics

Joseph B. Lassiter

affiliation not provided to SSRN

Ramana Nanda

Harvard University - Entrepreneurial Management Unit

Date Written: June 16, 2011

Abstract

The case focuses on the US Dept. of Energy and the $38 billion dollars of stimulus funding the DOE received to encourage clean tech. They focus on "bridging the valley of death" i.e., helping young, innovative companies finance technically risky and very capital intensive development and commercialization programs. The case focuses on two DOE programs in particular, the Loan Guarantee Program and ARPA-E. The case raises the question of why these valleys of death exist, what can be done to deal with them, and how these DOE programs are designed and implemented.

Learning Objective: Help students understand the underlying factors that enable - and prevent - the financing of young, innovative companies and how these play out, with difficult consequences, in the uncertain and capital intensive world of clean tech.

Subjects Covered: Business & government relations, Climate change, Energy, Entrepreneurship, Finance, Financing, Government policy, Innovation

Suggested Citation

Roberts, Michael J. and Lassiter, Joseph B. and Nanda, Ramana, U.S. Department of Energy & Recovery Act Funding: Bridging the 'Valley of Death' (June 16, 2011). Harvard Business School Entrepreneurial Management Case No. 810-144. Available at SSRN: https://ssrn.com/abstract=1997208

Michael J. Roberts (Contact Author)

North Carolina State University - Department of Agricultural & Resource Economics ( email )

Box 8109
3332 Nelson Hall
Raleigh, NC 27695-8109
United States
(919) 513-8060 (Phone)
(919) 515-1824 (Fax)

HOME PAGE: http://www4.ncsu.edu/~mjrober2/main/Home.html

Joseph B. Lassiter

affiliation not provided to SSRN ( email )

Ramana Nanda

Harvard University - Entrepreneurial Management Unit ( email )

Boston, MA 02163
United States

HOME PAGE: http://www.people.hbs.edu/rnanda

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