Friday, January 18, 2008
Solar Investing Was So 07, Where Does VC Money Go In 08?
Last year it was all about solar companies and their ability to "create" energy.
This year the theme for venture capital money is on companies that "create" energy through efficiency.
Investor's Business Daily has a story highlighting where venture capital money is going in 2008. After solar, the focus moves to Energy Alternatives (sub req'd).
Nearly all of VC cleantech investment dollars went to solar firms in the first nine months of 2007. Why? Venture capitalists are very technically oriented. One of the things they understand is chips. Solar is very related to chips. It's an area they can wrap their hands around
VCs likely will fund more nonsolar cleantech companies as they grow more savvy about green industries
Observers expect more funding for companies that deal with energy-efficient buildings, alternative fuels, green cars, managing power on the electrical grid.
Some venture capitalists are looking for companies that reduce power needs and manage energy demand, not just companies that supply energy.
Imagine the impact when Electric Motors Go Green