Hitesh Shah has experience on both the investor and the entrepreneurial sides of high-tech venture capital. At the private Taiwanese venture fund WK Technology, he assessed and grew entrepreneurial companies from the outside. He later applied that perspective as an internal team member at iPolicy Networks, a venture-funded network security appliance company. Shah raised $44 million in venture funding for iPolicy.

In February, Shah accepted the post of CFO for Fat Spaniel Technologies, makers of a Web-enabled renewable energy monitoring system, and agreed to share his thoughts with Energy Priorities.

What do you make of the current investment climate for clean energy?

"With an unprecedented amount of capital and new investors pouring into clean tech, there is no doubt that the opportunity is significant from both an entrepreneurial and an investor perspective. Because this is still a young industry, we are relatively early on the innovation curve -- there are plenty of needs left to address and the door is wide open for a new group of entrepreneurs who will no doubt continue to develop solutions accordingly."

How does your finance work at Fat Spaniel Technologies compare to more classic Silicon Valley start-ups?

"There is no doubt that the opportunity is significant from both an entrepreneurial and an investor perspective."
--Hitesh Shah, new CFO at Fat Spaniel

"Whether you’re operating in IT, security or clean tech, much of the core business is the same. The operation of an office, HR functions, funding cycles, closing the books, these are fundamental skill sets that are transferable. In fact, I think the transfer of expertise, ideas and lessons learned in other industries offers invaluable input to the maturing clean energy sector. A move into the renewable energy industry does of course require deep education in an entirely new language and a different set of industry players and drivers."

Is there any one thing you've learned so far that clearly distinguishes the energy and IT sectors?

"More than anything, I’m impressed by the role that policy plays in this industry as opposed to the other technology industries in which I’ve worked. Tax credits, incentives, and other state and federal regulatory drivers are an essential piece of the economic puzzle for clean energy. In California, unclaimed RECs [renewable energy certificates] alone left nearly $50 million on the table this past year. When optimized, all those factors add up to a significant boost for the growing renewable energy market."

What advice do you have for a start-up in the energy sector?

"In contrast with the dotcom and high tech industries, start-ups addressing the energy industry are very much delving into a market of incumbents rather than carving an entirely new space. However it’s not all about avoiding being crushed by the giants as one might suspect. With established energy companies going green, we have an industry with an interesting mix of big players partnering with smaller start-ups. Each brings unique benefits to the market. Start-ups like Fat Spaniel provide dynamic innovation while the established players bring critical capital, credibility and influence to what is still a relatively early-stage industry."