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Prognog Home  Investment Clean Tech Clean Tech
In 2005, American venture capitalists invested more than $1.6 billion in clean tech. According to the trade group Cleantech Venture Network, this is a 35 percent increase over 2004. The cleantech field includes technologies related to water purification, air quality, nanotechnology, alternative fuels, manufacturing, recycling and renewable energy.
Rising energy prices and the increased demand for clean and renewable energy sources such as wind, solar, biomass, biofuels and hydrogen fuel cells are driving this newfound investment dynamo. Clean Edge Inc. figures that the global market for these energy sources were around $40 billion last year and should grow to $167 billion by 2015.
Whereas past investement in clean tech have had rather dismal returns, the market demand and new technologies are changing the investment potential.
"The need for technologies that help sustain the world's growing population without causing more damage to the environment will only increase with time," said Jack Harrington, general partner, Advanced Technology Ventures, a bi-coastal venture capital firm. ATV has recently sponsored a competition called the California Clean Tech Open, a business plan competition that supports ATV's goal of furthering innovation in the clean tech industry. Winners will be awarded more than $500,000 in cash and service prizes at a Sept. 29 event in San Francisco. ATV is behind this competition in an effort to attract entrepreneurs and encourag innovation in the clean technology market. |
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Cornell Capital Partners plans to invest $150 million in cleantech and renewable energy companies worldwide over the next 12 months, according to Mark Angelo, Cornell's Portfolio Manager.
Cornell provides funding to cleantech and renewable energy sector companies to assist with R&D, to commercialize new technologies, and to grow organically or by acquisition. Cornell is willing to commit funds to help businesses in the sector become more mature and price competitive.
In the last seven months, Cornell has committed more than $30 million in financing XsunX ($7,850,000), McKenzie Bay International Ltd. ($5,000,000), GreenShift ($6,000,000), Barnabus Energy ($15,000,000), and NewGen Technologies ($5,000,000).
"With the announcement to invest $150 million over the next 12 months, it is an indication of Cornell's commitment to the sector," said David Ratzker, Cornell's Vice President of Corporate Finance. "The Power-Gen conference is a great opportunity to meet with companies, which have the ambition we are looking for to make this sector a lasting success."
Founded in 2001, Cornell works closely with management to design custom-tailored, alternative financing structures that meet each individual company's capital needs and corporate goals. |
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According to the Cleantech Venture Network, investments into green technology in the form of North American venture capital has jumped 35 percent last year to more than $1.6 billion.
Cleantech investments by venture capital firms rose to a record $502 million during the
fourth quarter of 2005 — 18 percent more than the previous quarter and 60 percent
more than the same period a year earlier.
"We saw consistent upward growth in the amount of investment, the number of investors
and the range of things invested in," said Nicholas Parker, chairman and co-founder of
the Ann Arbor, Mich.-based Cleantech Capital Group.
Cleantech companies and technolgoy include those related to water purification, air quality nanotechnology, alternative fuels, manufacturing, recycling and renewable energy such as solar, wind and hydrogen.
In the last quarter of 2005, cleantech companies utilized 10% of the venture capital available, pushing it to fifth on the list behind biotechnology,software, medical technology and telecommunications, the report said.
The report attributes thie interest in cleantech companies to the rising cost of oil as well as other natural resources.
"Being much more efficient with natural resources is now an economic imperative,"
Parker said. "The rise of China and India and other emerging market economies is
forcing up prices of natural resources of all kinds."
Source: www.cleantech.com |
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The term "clean tech" generally refers to those technologies that:
- Attempt to produce energy or use raw materiels more efficiently
- while still delivering equal or greater performance,
- and ideally creating less waste or toxicity
Cleantech companies and technolgoy include those related to water purification, air quality nanotechnology, alternative fuels, manufacturing, recycling and renewable energy such as solar, wind and hydrogen.
Increasingly, venture capitalists, as well as traditional financial firms, are looking towards new and emerging technologies for unique investment opportunities. Cleantech provides such an avenue.
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