VCs rethinking Clean Tech Investments

For the last 1/2 dozen years we have seen a steady increase in the number and amount of Venture Capital funding directed at clean tech start-ups.  But a lot of the committed capital went to a relatively few, large investments in the energy sector.  So while it looked like typical VC behavior of pouring money into hot tech sectors at a macro level, it was different in that VCs were backing relatively few companies but with massive commitments.  Now the number of suitable investments have dwindled, VCs are returning to a model they are more familiar with and more comfortable with as this Technology Review article explains:  Venture Capitalists Back Away from Clean Energy

Now many venture-capital firms are going back to their roots. Dozens recently stopped making initial investments in clean technology companies, according to Dow Jones Venture Source. Many that continue to invest in clean technology are shifting to areas such as energy efficiency, which includes low-capital projects such as software for monitoring and reducing energy consumption, according to an analysis by the Cleantech Group.

 

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