Some random links and observations on a Friday:
- Apparently not every reader picked up on the fact that my last post was tongue-in-cheek. Guess you had to be there. Fortunately, Scott was in fact there...
- David Gold wrote recently on some of the same issues, wondering why solar and the like have gotten so much attention from VCs while technologies like geothermal have gotten much less attention. His answer is that in large part "much of the bias has to do with the fact that not many VCs have strong networks of geologists, drilling technologists, heat pump engineers and steam turbine power generation experts to build great geothermal companies". I'm directionally in alignment with David's take -- obviously I agree that VCs need to broaden their horizons into other sectors of cleantech, and acknowledge it's easier said than done when it requires learning new markets, new technologies, etc. However, I'm not sure geothermal is the best example for this. VCs going into solar and biofuels are following the few available examples of good exits in the sector, geothermal plays are often challenged in VC eyes in terms of their capital intensity and lack of opportunities for new intellectual property, and it's not yet a fast-adopting market. Same challenges for VCs looking into other sectors like ocean power, grid-scale storage, etc. Like it or not, not all attractive market opportunities are a good fit for the venture capital model.
- Not a lot of optimism out there right now about either the passage of a cap-and-trade bill, or that it would have much of a positive impact on individual companies.
- On the other hand, Deutsche Bank Asset Management is advising their clients to put their money into investments outside the U.S. in part because all the on-again, off-again support for green technologies is creating a lot of uncertainty.
