Investing in the Future, Essay Example

As Steve Juvertson states, the technologies with huge commercial potential are often those that can disrupt current markets and may be even create new industries (Juvertson). One of the complaints against electric vehicles is that it is usually difficult to find a recharging station. Another problem is that electric vehicles still have limited range which makes them unsuitable for long-distance commute. Similarly, even if there are enough electric pumps, charging an electric car is still a time-consuming process which makes electric pumps still economically infeasible today.

If Japanese company NEC’s electric pump technology (Associated Press) is any indicator, electric pumps will soon charge electric cars as quickly as gas pumps or may be even faster. NEC pump can already charge an electric car in about thirty minutes and the historical trend of technological progress means few minutes full charge should not very far away in the future. Any company that can offer a reliable solution to charging electric cars has the potential to create a multi-billion dollar industry and even help U.S. reduce its dependence on foreign oil. Electric pumps do represent the kind of technologies that venture capital firms look for. Electric pump technology may not only disrupt the oil industry but also go on to dominate the alternative fuels industry.

References

Associated Press. Charge ‘er up: Electric car ‘pump’ arrives in Oregon. 5 August 2010. 18 November 2012 <http://www.kval.com/news/tech/100078574.html>.

Juvertson, Steve. VC’s Seeking Disruptive Markets. 7 October 2009. 18 November 2012 <http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2297>.