Feed Resource Recvery - Assignment Example

From the analysis of Waste Generation Industry, Shane found out that food processors were accounted for producing about 400 to 900 tons of food waste and turn them into recycled bi-products which rate is the highest in the industry. The second was the restaurant industry which accounted for about 500 tons of food waste, followed by supermarkets, accounting for around 200 to 400 tons. These are the competitors on the supply chain side who can also turn themselves into the CleanTech industry and make a fortune.

Now at the industrial level, the biggest and most potential competition for Feed stems from Converted Organics Inc, BlueFire Ethanol, Inc, Disenco Energy PLC, Oakleaf, Rod McLellan Co, and Synargo Technologies. These firms are expert in Organic Soil Additive industry, Green waste management industry, Home power plant manufacturing industry, Recycling equipment manufacturing industry, naturally derived fertilizer manufacturing industry and Residual recycling industry respectively. The best thing about these competitors of Feed is that they are stock listed and already serving a customer base varying from 100,000 to 250,000 customers every year (Zacharakis-Jutz, 2008).

Venture capitalists are eager to invest and interested in diversifying their source of income as they can already see the respective industry which Shane wants to enter as a lucrative one. In 2001, the investments made in this sector were only around $500 million to $600 million, which has increased to a staggering $ 2500 to $ 2600 million by 2007 (Zacharakis-Jutz, 2008). Another factor responsible for investors to invest in the CleanTech industry is the rising prices of gasoline and fossil fuel around the globe.

In this manner, CleanTech’s products seem to be the future of fuel engineering and consumption. Another major factor is the increasing awareness regarding global warming and the impact of industrial waste and carbon emissions on global weather. With the arrival of CleanTech products, this problem could be solved in an efficient and cheaper manner. Last, but not the least, is consumer markets all over the world are now becoming loyal to those businesses who conduct their business activities with a greener and an eco-friendly strategy (Estes, 2009).

Being a venture capitalist, my first and foremost attempt would be to understand how the CleanTech industry is unique or which aspects must be considered that make this industry different from others. My second question would be regarding the valuation of the company that I am interested to invest in. By knowing this, I would be able to compare the offered number of shares or equity in the company against the investment I am expected to make. Then, a series of questions focused on different functional costs and operating costs would be there, just to understand the acquisition cost structure that the company will follow.

The last part of my interrogation would focus on understanding the person who is asking for investment, as the personality traits also influence decision-making skills heavily. I would like to know the background of the entrepreneur, since when he/she has been thinking about this project, what is the vision or success ideas that they have in mind, what type of involvement they require from my side in this venture, and when they are going to pay me back my money (Cumming, 2010). Considering the mammoth amount required to build the prototype of the product, it appears that Shan and Ryan’s family will definitely need time to arrange it.