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| Economy | |
| Lobbyists Are First Winners in Obama's Clean-Technology Push | |
| 2009-03-27 | |
| At first glance, SmartSpark Energy Systems looks like a lot of technology startups. It raised $6 million in venture capital, employs 24 people and doesn't make any money. What sets the company apart: It has two teams of lobbyists. The first jobs of the federal clean-energy stimulus plan are here -- and they're for lobbyists. SmartSpark is part of a stampede of technology companies hiring insiders in Washington and state capitals to gain influence. They're vying for a piece of last month's $787 billion stimulus package. "There is so much at stake here that there's an enormous need for entrepreneurs to get close with policy makers," said Jason Matlof, a partner at Battery Ventures in Menlo Park, California. "There are billions just for R&D. It's a lot of money." The spending is far more than venture capitalists can give renewable-energy companies, especially during a recession, Matlof said. Battery told its eight clean-technology companies last month to put a specific executive in charge of getting public money, and to consider hiring lobbyists. The stimulus bill, signed by President Barack Obama last month, includes $77.6 billion for clean-energy projects, according to the research firm IDC.
Cleantech Group, a San Francisco consulting and executive- search firm, says venture capitalists are bombarding it with requests to form a trade association. They want a permanent presence in Washington to lobby for the industry. "It's the topic du jour," said Dallas Kachan, a managing director at Cleantech Group. "We've literally spent the last few weeks trying to figure out how we can play a role." Another organization, called Cleantech and Green Business for Obama, is within weeks of announcing a plan to form a permanent group, co-chairman Josh Becker said. The organization raised $1.6 million for the president's campaign last year. The new industry wants to make progress in Washington before congressional elections next year and a presidential race in 2012, Matlof said. If the Republicans retake power, it may be reminiscent of 1981, when President Ronald Reagan abandoned Jimmy Carter's pro-conservation policies, he said. | |
| Posted by:Fred |