Whether called cleantech or greentech, venture capital firms know a lot about this new industry and play a big role in companies growing beyond the startup phase, In the 2006 to 2007 timeframe, solar power, wind power, and biofuel commercial and industrial startups were getting a lot of government support and dollars from venture capitalists and angel investors. This market panorama has changed – solar production moved to China where its lower costs undermined US companies, the Great Recession dried up capital reserves and opportunities, and the infamous Solyndra bankruptcy scandal in the Fall of 2011 stopped much of the government and venture capital support.
Renewable energy is not expected to go away, but just to take longer to take root in the US economy. Venture capital firms are still interested in, and supportive of, electric vehicles, and their battery systems and charging networks, though in a more conservative fashion lately. Another segment getting dollar support is energy efficiency, where workplaces and residential are seeing advances in cloud computing and advanced technologies – some of this targeted at mobile and social media applications. Investors want to see range anxiety reduced for EV car shoppers. Electrified systems will need to improve, and offer a driving range that can travel as far as gas-engine vehicles, according to investors.
