Green Venture Capital Funds
The Green Movement has caught the interest of investors in all areas and it offers potential profits as will as social benefits. Green venture capital funds concentrate on cutting edge companies that are developing environmentally friendly technology.
There has been a surge of interest in area of environmentally friendly technology and has been drawing steady attention from the managers of venture capital funds. It is expected that venture capital investments in green start-up companies will reach 3 billion dollars this year. IPO’s of Green companies should reach 1.2 billion. Green investments will account for $1 out of every $10 dollars invested. Green venture capital funds seem to be growing with a frenzy that reminds people of the Dot Com boom.
There does seem to be a major difference in the approach to green investing compared with the dot com experience. At it height, venture capital companies were piling money into companies involved with the internet and it did not seem to matter if they were making money or not. It seemed that faith in the internet was so high that nothing could fail there. Of course, the lesson was well learned.
The green companies have many factors in their favor that differ from the dot com companies. The increasing shortages and rising price of certain natural resources as well as concerns with pollution are creating a demand for new technology. Government interest in environmental issues has led to subsidies that can only help emerging companies reach profitability by shoring up the bottom line.
It is in the area of energy where the best potential might be found. 930 of the last 1500 venture capital deals made by Green venture capital funds have been related to energy. The search for alternate energy sources has world wide social and political implications. Any new technology that improves energy consumption figures or reduces pollution is certain to garner much scrutiny from investors. The issues of Middle East political stability and global warming concerns keep attention focused on these areas.
Of course, venture capitalist have learn the lesson of the dot com boom and bust. Green related companies are not instant success stories because they are working in environmental friendly directions. Some of the green companies have already flopped. All of the serious study that marks any venture capital investment needs to go into green investments. However, there is no question that Green venture capital funds are an excellent investment for anyone seeking a good return and a better planet to live on.