Clean Energy Venture Capital
Clean energy venture capital refers to the very hot interest in environmentally sound means of meeting energy needs. There are many reasons why this field is drawing the attention of venture capitalist today.
One of the characteristics of venture capital is that it is often orientated to the cutting edge of technology. This is why it is considered a growth vehicle and is supported and even encouraged by governments that realize a conservative view of technological advance will leave them sadly behind in the global market place. One area where this is very evident is energy and the environment. The Green movement has become an international effort to control pollution and reduce energy demand. Clean energy venture capital deals are helping this effort by encouraging research into new energy sources.
Clean energy is a rather broad term that can include just about any type of energy that reduces pollution. Some of these totally leave the fossil fuel burning arena for new areas completely. Wind energy would be a good example of this, as would be solar energy. These two areas are the most evident “clean” energy technologies and both are really in their infant stage. While the venture capitalist might dream of that deal of a life time when some emerging company develops a true substitute for fossil fuel, there are some good reasons why clean energy venture capital is not a shot in the dark type lottery deal.
There are two very powerful groups that are very interested in clean energy. One is the United States Government and the other is the very influential environmental movement. This combination makes a very powerful ally to any company that is working to develop or actively operating any type of clean energy venture. With these two very powerful backers, companies have been receiving substantial tax credits and subsidies to keep them going forward.
One way to view this is to realize that the entrepreneur, while motivated in part by environmental and social concerns, is also pursuing his venture with an eye to profitability. When the venture capitalist becomes involve, he joins this team and shares the desire for profitability. When Government and even an international movement join the team with a shared goal, the profitability team is very powerful.
The environment has become a very hot topic in the new century and rightfully so. The industrial revolution transformed the world, but at a cost that the planet can no longer afford to pay. It is way past the time when our vast technological knowledge should be applied to finding ways to protect our common home. Clean energy is one of the cutting edge areas of this common goal. The venture capitalist supporting clean energy ventures is not only being socially responsible, but is fulfilling his role as the supporter of innovation. Also, there is that world changing innovation out there and the possibility of a record setting ROI.