With the news today that GreenFuel is shutting its doors, it's a good reminder that there is a lot of bad news yet to be seen in cleantech venture capital.
A lot of high-profile startups have high cash burn and unclear follow-on financing prospects, because they raised big money at big valuations in the past and since then the world has changed and fewer big money / big valuation deals are getting done. Many of those companies have over the past few months been put into a slow-down mode and maybe have received bridge financings and the like. All of which helps them stick around, but also doesn't completely address their growth needs, in fact it might hinder their ability to grow going forward.
Meanwhile, although there's been a rally on Wall Street and some encouraging signs, the overall consensus of economists seems to still be that it'll get worse before it gets better -- the trajectory is improving, but is still down. And with some potential for new bad news, of course. There's been a bounce of sorts early this year as everyone digests the company sales and VC deals backlogs caused by absolutely nothing happening in the 4th quarter. But things are still very slow relative to where they were a couple of years ago. And so it will be hard for these struggling companies to right the ship in this economic environment.
Thus, expect more bad news over the next few months. But hopefully with an increasing amount of good news as well...