While Congress and the White House to initiate investigations in loan guarantees renewable energy have been granted to companies like Solyndra in 2009, stimulating and relevant legislation, the USA TODAY analysis shows that the number of companies that have received public assistance a reasonably beaten the stock market, and most venture capital funds raised in 2008.
Debate is raging in Washington about the authority is able to effectively choose winners and losers in the rapidly evolving economy, the data shed light on the Obama administration has taken two very important jobs that VC occurs in a high-tech economy - to help investors make money and bring new technologies to market. Skeptics have pointed out '2009 e-mail commenting that "the government has a poor VC' Obama economic adviser Lawrence Summers, the former argues that the $ 787 billion stimulus measure was full of waste.
Approximately 100 billion of stimulus funding for technology spending, according to tech consultancy firm International Data Corp. Two-thirds were for energy, and most of the rest going to subsidize the adoption of the medical-health records electronic records (EMR) software. In the USA Today's request IDC identified major beneficiaries of these expenditures to determine if the money by helping businesses grow and bring technologies to market.
The analysis covered more than 45 companies that have registered for an IPO, or the public, including most of the leading manufacturers of electronic medical records software and electric cars, and a small selection of 5000-plus companies and government agencies who received a local clean energy stimulus grants. USA TODAY looked at separately for recipients of all 38 completed or pending loan guarantees from the Department of Energy's three leading financial programs, including well-known public companies such as Ford, South Cos, and NRG is a list of IDC. Overall, the companies involved, or their customers, will receive more than two thirds of funding technology.
Currently, the legislation has led to the adoption of electronic medical-records software, information, and to promote the electric car industry, which sells at least 20 000 vehicles this year. At least 19 companies have gone public or filed for IPOs after receiving stimulus packages, which Solazyme of $ 21.8 million grant to build a pilot biofuel refinery $ 1.6 billion loan guarantee, letting the light source of energy for build the largest solar plant of its kind in the world, the disclosure of securities filings.
The stimulus has contributed to an increase of 82% stocks 11 technology companies in health care since President Obama took office and a gain of 263% in the three public companies that have had 7.8 billion dollars in federal funds to build factories next generation of vehicles. She has contributed to an increase of 79% stocks of the four major energy efficiency companies identified by IDC, including diversified companies like Johnson Controls and Honeywell. The companies involved in smart grid development, nine large high-tech companies are also in many other companies, increased 54%.
All these match or exceed 51% of the profit for the Standard & Poor's 500-stock index, and perhaps the 4.9% average annual profit of venture funds raised in 2008, according to Cambridge Associates. Major exception is that the five solar companies and manufacturers of advanced batteries is the list of IDC decreased by 70%. Similarly, among the beneficiaries of the loan guarantee studied the USA Today, solar power-related companies, companies like Solyndra and energy storage applications such as Beacon, which has filed bankruptcy reorganization Oct. 31, has fared the worst.
Filtering effect is real, too.
Solazyme Jet fuel from algae fed her first United Airlines flight on 07 November. Over 40% of physicians now use electronic medical records, compared with 29% two years ago, 75% of those working in groups of more than 25 doctors, according to research firm SK & A Electric cars are more hit the road with Fisker Automotive $ 95,900 luxury sedan to come to U.S. stores this month, as Tesla Motors, gears to supply batteries for electric Toyota RAV4 SUV in addition to launching its Model S sedan next year.
Even a venture capitalist, who warned the White House on public support for Solyndra says global stimulus was always a good idea.
"The government has been a better CV of a number of people on the street," said Steve Westly, a former controller and the State of California that the Obama fundraising venture firm backed company Amyris Tesla and biochemical , each of which received support. Westly sent a high-profile e-mail to Valerie Jarrett Obama support, trying to persuade the White House to have the visit of President of Solyndra.
Get armor
Stimulus "plan to promote the technology has attracted Firestorm when Solyndra neglected in government bonds in August. Republican National Committee November 9 bundled programs, the collapse of investment bank MF Global in the midst of the debt crisis as evidence mismanagement of the government. " This is a classic case of waste, fraud and abuse, "House Energy and Commerce Committee Chairman Fred Upton, R-Mich. Said in August. The Energy Department spokesman Damien Lavera waived for a high-level officials comment.
The success or failure of the stimulus is more than stock prices. Number of permanent jobs, or stored in the programs of government loan guarantee is 40,000, and construction jobs many thousands more. More than three-quarters of permanent jobs in the Ford. The government owns the shop for some companies it supports, or other reap the profits. In most things in Washington is a game only the skin's ability to repay loans the government makes or guarantees.
In addition, the stimulus money is not the only reason why many companies that received flourished. General Electric $ 210 million recovery of income is less than one tenth of 1% of revenue, spokesman Andrew Williams. Similarly, Dell and IBM took advantage of smart grid development or updating health records and was encouraged by the broader recovery. Even a small company like Solazyme, the stimulus was much less than U.S. $ 280 million who was raised in venture capital and IPO financing.
However, the government fills a gap in the bond market has continued since the financial panic of 2008, said Scott Sandell, a partner at New Enterprise Associates (NEA), the nation closes at highest risk.
"In all sectors of clean technology investing, there is a huge lack of capital at any stage of development of a society where there is a risk," said Sandell, whose firm backs Fisker, who obtained a guarantee of $ 529 million loan to renovate an old factory General Motors in Delaware. "Believe me, it was a barren landscape."
An IPO of leading analysts agreed, saying that the recovery strengthened market confidence in companies such as Tesla, helping to attract investors and the IPO business partners.
"Government money was a platform, and some of them, and flew as Tesla used on their own," said Francis Gaskins, editor of IPO Desktop. "Many watched them money to the government as a way to do things they could have done anyway. "
Healthy gains
The best relationship between the stimulus and the economy may be in the healthcare software in which the momentum of corporate value far exceeds the amount spent so far on the costs of the program five years to $ 30 billion . In general, the gain value of companies such as McKesson, Cerner and athenahealth's stimulus plan was proposed at least $ 20 billion.
The stimulus pays about $ 100 million to date for customers to identify the largest manufacturer of electronic electronic medical records (EMR) software, said Piper Jaffray analyst Sean Wieland. Cerner seen 20% of the market, resulting in an additional $ 500 million in annual sales for the industry could double in the Medicare reimbursement later, also part of the stimulus bill, a kick in for doctors not using DME in 2015, he said.
"It's really accelerated the adoption," said Jeff Townsend, chief of staff of Kansas City, Missouri-based Cerner, whose share price value was up 194% or $ 6.5 billion since January 2009. Identify new software sales increased 26% in the first nine months of 2011 compared to 2010 the rate of 16%. He said that additional costs will contribute to growth, such as physicians to improve their systems and link them together.
That expenditure has risen almost every health IT stocks. Allscripts Healthcare Solutions, a company whose CEO Glen Tullman DME raised money for Obama in 2008, has seen an increase of 134% share. Rival Athena Health on the Internet that offers medical billing and EMR services as a cheaper alternative to a program that has doubled since mid-2010.
The question is whether the expenditure has been effective, says athenahealth CEO Jonathan Bush, who has donated to the presidential campaign of Mitt Romney and is the cousin of former President George W. Bush. He said Washington might have encouraged the introduction of cheaper, more flexible technology through regulatory changes without subsidizing software.
"We are a beneficiary of the stimulus spending, but we would have done even better without it," said Bush, whose company has benefited from the administration's decision to have Medicare pay physicians on a regular basis with EMR, in favor of pay-as -you-go Internet business models, such as Athena, and does not pay for software purchases in the face. "What really needed was hundreds of cloud-based business innovation."
Compared with government standards, the recovery of health has been disciplined enough, Townsend says. Physicians are not reimbursed by the software until they show they are using it regularly for work, such as prescription drugs, he said. All weaving all networks belonging to different doctors and hospitals will take time, the exchange of data is essential to contain health care costs in general, said.
Get out there
The recovery of energy is more controversial. More than 5,000 grants totaling $ 34.6 billion and 38 loans and loan guarantees totaling an additional $ 35.9 billion has been approved. But $ 11.3 billion of loan deals are not closed, and only 19.2 billion U.S. dollars of grant money was spent, according to Energy Department data.
The energy recovery stimulus known error, Solyndra. A congressional committee wants to know if the policy is vitiated by Solyndra's loan review, and the curricula of other securities.
So evil is from A123 Systems, which won a $ 249.1 million to build a Michigan plant for electric car batteries. Its stock has fallen 83% since its IPO in 2009. A123, which lost $ 172.8 million in the first nine months of 2011, says that the breakeven point in 2013, excluding taxes, interest and costs of non-cash accounting.
Another beneficiary of the loan guarantee, Beacon Power, filed for bankruptcy on October 30.
Not all the money in a high-risk trades. More than 10 billion of loans scheduled for two nuclear power plants, as the utilities with investment grade credit. Another $ 8300000000 is borrowed from Ford, Nissan, Tesla and Fisker to develop fuel-efficient vehicles. Almost $ 6 billion went to Ford to develop new versions of the models, has sold 2 million copies a year.
Each of warranty, the only government to lose money if a borrower defaults.
The $ 13 billion-plus loan for solar distributed between $ 1,820 U.S. dollars for facilities for the manufacture of equipment for new technologies, including Solyndra, with over $ 11 billion to build solar power plants, mainly using existing methods. Loans for solar farms are safer, as these agreements includes long-term contracts for utilities to buy electricity from projects such as BrightSource $ 1.6 billion Ivanpah, Calif., facility, said the Analyst Andrew Lux Research Soares.
Investors have already made good returns on companies in the projects of DOE several years. Tesla has raised venture capital at $ 7.53 per share in May 2009, received a loan guarantee in June, was placed on $ 17 last year and is now worth $ 32.60 per share or $ 3.4 billion. Ford has increased fivefold, driven by global auto recovery.
The loan "lets us get where we can mass-market electric vehicles," said Diarmuid O'Connell, Tesla's president, vice president of business development. He also said taxpayers win if electric cars to cut imports of U.S. of oil. "For economic or political reasons, you have to do what was coming," he said.
In any case, industry has been hampered recently due to loan guarantees from the United States are difficult to obtain or get to the paperwork, said Sandell. A better offer from the Government of China has helped persuade the NEA supports Suniva solar cell manufacturer to build a factory in Asia instead of Michigan, said. Kior, development of alternatives to wood-based ethanol, has deferred its application for a guarantee of U.S. $ 1.1 billion to finance refineries in Mississippi until 2012, although funding for the program is in limbo.
"It can never close," Vinod Khosla, a VC that controls an interest of 72% Voting in Kior said in an interview in September with The Daily newspaper iPad Rupert Murdoch. Kior went public in June after winning a prior commitment secured credit allows a gain of 11 times in pre-IPO share. "If you can get one (ExxonMobil) or Chevron to work with you, why go through the federal government?"
The volatile stock market will help determine the success or failure of the stimulus, whether measured by gains in market value or jobs created, said NEA Sandell, a frequent contributor to Democratic politicians.
Start-up bag to go to create 90% of jobs in the post-IPO, he said, referring to a study commissioned by the National Venture Capital Association. It will take years before the full impact of the stimulus-funded enterprises is evident, and errors such as Solyndra typically occur quickly, he said.
"If it succeeds, it succeeds because of some companies produce excellent results," said Sandell. "Lemons always displayed first. And 'a history of venture capital in the industry."
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