A couple of months back we discussed the potential impacts on cleantech venture capital from a possible recession. Since then that "possible" recession now seems to be hitting in full force, with a lot of pessimism out there at the highest (well, not the VERY highest) levels. So does that mean the picture's gotten clearer for those in cleantech venture capital? Nope. If anything, opinions are even more widely cast at this point, showing that no one really knows anything. In the past few days, we've seen arguments all over the map. Here's a column which argues that green technology could be recession-proof. Then there's consultant Rob Enderle, whom I heard this morning on NPR, arguing that green technology could be the hardest hit of all tech sectors because green techs are "feel-good" only, with poor economics. Finally, Eric Janszen hopes that cleantech could be the "good bubble" that floats the rest of the economy through the coming rough times... We still don't know how it will turn out. For yours truly, it's still looking "third scenario" out there in the industry, at least so far. In 2008, it looks likely that exits will be harder to come by, and that'll have a negative impact on some existing portfolios (esp. those with big cash burn), as well as a dampening impact on all the generalists still on the fence about whether to jump in or not. And while debt markets sort themselves out, project financing could be harder to come by. But the dealflow remains healthy, cleantech VCs so far remain active, large corporations are still very eager to get into the market, and for clean technologies that DO have strong economic value propositions (Mr. Enderle's learned opinion notwithstanding), customers seem very eager to capture cost savings. So, we'll stick by the "third scenario" (2008: down but not disaster) forecast... at least for now. Speaking of cleantech venture activity not slowing down, here are deals from the last few days:
  • Environmental Operating Solutions, which has technology for the removal of nitrogen from wastewater, has raised a $2.5mm Series A, led by Stuart Mill Venture Partners. The company had previously been backed by angels.
  • CleanFish, a distributor of sustainably-harvested seafood, raised a Series A (VWire reports it at $4.2mm) led by TBL Capital, and including Mindful Capital and individual investors.
  • Cleantech investors in the news: A cleantech hedge fund gets launched... Speaking of TBL Capital, Clean Technology Investor reports that they now have six portfolio companies in their $50mm fund... And VentureWire reports that Masdar will no longer make any LP investments in cleantech venture capital firms, instead they're going to focus on direct investments.
The AIChE's Boston chapter is going to be holding a Clean Energy Dinner Meeting in Boxboro, MA on April 3rd, check it out. Here's a suggested ice-breaker topic: Mr. Ozzy Freedom's fantabulous homemade automotive electrolyzer and hydrogen injection "water burning hybrid" system (thank you, Google AdSense, for bringing this one to my attention). Over dinner, you may enjoy discussing the following topics: a) "Do you think Rachel understands basic thermodynamics?"; b) How can I enroll at the "Water4Gas University", and are there scholarships available?; c) Mr. Freedom, thank you for the vote of confidence: "Anybody with NO MACHINES, with two broken pliers and half a brain, can build a jar with some wires inside. And get results."; and last but not least, d) does the recycled Bell jar come with the kit, or do I have to supply my own? This cleantech stuff is pretty easy, I guess. Other news and notes:  Advent Solar announces re-tooling program, with workforce reduction and plans to re-launch production next year [note: Advent is a portfolio company of @Ventures]...  Finally, still waiting on my loaner...
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