A couple of years ago, before things went wrong with the economy, there were a fair number of first-time cleantech venture firms out fundraising. Some have persevered in their fundraising efforts. Most have had to stop trying.

It may be healthy overall for the sector over the long run to not have too many funds running around.  But what's a shame is that this weeding out came at a time when the sector was in need of some reinvention, different investment models and different perspectives.  While some of that reinvention will come from more established firms in the sector, some of those newer firms would ostensibly have had a better chance of coming up with that new thinking.

What I find fascinating, however, is that I believe the next wave of cleantech venture firms will come from within.  Across the industry, in a lot of established generalist and cleantech-specialist firms, or having recently left them, there is a cadre of less senior investors who are bumping up against advancement ceilings at their current firms, and are thinking about what they could do in launching their own firm, alone or with others.

Some are cleantech specialists at generalist firms that are shifting away from cleantech. Others are investors with significant experience at specialist firms who don't see an opportunity to advance within those firms, given the likelihood of smaller funds (thanks to the rough fundraising environment) and the current makeup of their firm.  Professionals with five to 10 years of cleantech investing experience, still considered "young" by VC standards, but who've already been through one investment cycle in a sector that itself is young. And sometimes collaborating with these investors are some more senior partners who agree with the need for reinvention and may be looking for new platforms.  

I just got off the phone this morning with yet another such "young" investor who's launching his own new firm, and I've spoken with a number of investors who've already left the firms they had previously been affiliated with and are thinking about putting such efforts together.  I also have a sense there are others out there still at their current firms but quietly thinking about making the jump (if this sounds like you, you're far from alone). The recurring theme of these conversations runs along these lines: "Cleantech venture capital has been done wrong / missed the real opportunity, and we're thinking about some new models or new tactics." Which, of course, is music to my ears.

I think this is an exciting development for the sector, because this means there might be a wave of experienced cleantech investors with a willingness to break with the past, entering the marketplace with new energy and new thinking. The young guns of cleantech venture capital may yet ride to the rescue.