First published in Cleantech magazine 2011 Issue 3. Copyright Cleantech Investor Ltd

www.navitascap.com

Navitas Capital is a California-based venture fund with a focus on energy efficiency in the built environment, particularly with reference to the convergence of IT and cleantech.  The fund was founded in 2008 by Travis Putnam and Jim Pettit, who have been investing in the space since 2005.

The built environment is somewhat of a catch-all phrase, but at Navitas it is used to refer to anything to do with man-made buildings and the infrastructure which supports and connects them. With an estimated 45% of emissions coming from the built environment, it’s no surprise that the market has been estimated to be worth over $1.3 trillion. This includes offices, homes, schools, hospitals, hotels, public buildings, airports, streets, pavements, parks, parking structures, expressways, bridges, railroads and waterways.

In the UK, over 70% of the building stock that will be available in 2050 has already been built; in the US, the proportion is estimated to be roughly two thirds. The need for emissions reduction will therefore provide a major driver for the retrofit market, since an effective green retrofit can cut energy and water use by up to 50%.

There is great capital efficiency in energy efficiency investments, which is a key interest for Navitas. While the fund will consider early, middle and late stages, four of its investments to date have been in early stage companies.  Investments so far include six companies - Serious Materials, PowerMat, Lunera Lighting, Arxx Corporation, Sustainability Roundtable and Soladigm.

According to Navitas partner Travis Putnam: “The fund has been careful not to get swept up in the broader cleantech hype and focus our efforts around investments in companies that have solid business models (no government support or subsidies required), compelling value propositions to existing customers, and credible paths to exit. In general, this has led to a tight focus on energy efficiency investments as opposed to capital intensive energy generation opportunities.”

The fund's strategic partners include construction and building industry leaders such as Webcor Builders, one of California's largest and greenest contractors in the commercial, institutional and residential sectors.  Navitas Capital’s interests include:

•    Building Materials: Cement; concrete; glass; drywall; improvements to existing materials, such as coatings and anti-toxicity.

•    Building Systems: Building management systems; lighting; lighting controls; HVAC; energy storage and distribution; fuel cells and geothermal.

•    Building software & services: Energy dashboards; auditing; building demand response systems; building intelligence and research.

The following table lists the portfolio companies of Navitas Capital.