Investments Grow for Electric Cars, Energy Storage, Smart Grid
More venture capital will be invested in innovative greentech firms and more IPOs will happen in 2010, predict some of the world’s smartest venture capitalists and investment bankers at the Venture Summit Silicon Valley. In most circles, greentech is called cleantech, but with the 2009 IPO of A123 (AONE) leading to a billion dollar valuation, venture capitalists are seeing green.
Cleantech encompasses the growing array of technology, services, and corporations that provide for a future with lower greenhouse gas emissions: energy efficiency, renewable energy, electric cars, smart grids, pure water, and even next generation building materials.
Continued investment is needed to bring us the next generation of batteries, solid state lighting, smart grid components, electric cars, lighter and stronger materials, and solar power so efficient that it makes no sense to build another coal power plant. Greentech is now 25 percent of venture capital investment reported Eric Wesoff, Senior Analyst, Greentech Media. Greentech has become the third major area of investing for the venture capital community that has focused on information technology and life sciences.
2010 IPO and M&A Growth
Forty IPOs of venture-backed firms were predicted for 2010, up from less than ten in 2009. More importantly, 600 venture-backed firms are likely to be purchased in 2010 through mergers and acquisitions [M&A] by large companies eager to expand their total offerings. The AlwaysOn Venture Summit included top private equity executives from Google (GOOG), Qualcomm (QCOM), Motorola (MOT), and dozens of companies with a history of acquisition. Hallways and lunch tables overflowed with investors, entrepreneurs, and corporate giants pitching, listening, and networking.
The severity of the recent recession has left brilliant ideas unfunded, lithium battery plants delayed, and gigawatts of renewable energy plants without project financing. Innovators at early stages depend
