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(Additional reporting by Megan Davies in Moscow, John Irish in Paris, Madeline Chambers in Berlin, Yeganeh Torbati in Dubai, Asli Kandemir and Dasha Afanasieva in Istanbul and Washington bureau; Writing by Kevin Liffey; Editing by Louise Ireland)
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Venture capitalists poured $2.2 billion into storage in thelast five years, according to the Cleantech Group, or well overdouble that of the previous five years. Werner, of SanJose-based SunPower, noted that the same minds behindsmartphones are moving into smart meters and storage in SiliconValley.
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Draper believes that it is partly a result of regulation in the new millennium and partly a result of the historical moment. “I’ll draw you the cycle,” he said, taking my notepad and pen. He scrawled a large zigzag across the page. “This is a weird shark’s tooth that I kind of came up with. We’ll call it the Emotional Market of Venture Capital, or the Draper Wave.” He labelled all the valleys of the zigzag with the approximate years of low markets and recessions: 1957, 1968, 1974, 1983, and on. The lower teeth he labelled alternately “PE,” for private equity, and “VC,” for venture capital. Draper’s theory is that venture booms always follow private-equity crashes. “After a recession, people lose their jobs, and start thinking, Well, I can do better than they did. Why don’t I start a company? So then they start companies, and interesting things start happening, and then there’s a boom.” Eventually, though, venture capitalists get “sloppy”—they assume that anything they touch will turn to gold—and the venture market crashes. Then private-equity people streamline the system, and the cycle starts again. Right now, Draper suggested, we’re on a venture-market upswing. He circled the last zigzag on his diagram: the line rose and then abruptly ended.
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George Spencer, chief executive at property and technology company Rentify, said "Landlords with West Bromwich Building Society will be reeling from the news that their mortgage rate is set to jump by two percentage points, even though there has been no movement in interest rates for more than four years.