Despite billions of dollars being infused to green technology by private industry and now even government stimulus packages, some of today’s most advanced financial minds are urging against investment of clean technology and green companies.
I think there are opportunities for investors in the long term,” says Glenn Croston, author of 75 Green Businesses You Can Start to Make Money and Make a Difference and founder of Starting Up Green, which helps entrepreneurs start and grow green businesses. Short term, however, “the supply of capital is uncertain, especially for businesses that have been VC funded and don’t have an immediate exit strategy,” he adds. “Being green doesn’t make anybody immune to market forces.”
In fact, green investing, like other once-hot technology sectors, has already seen some of the air escape from its balloon. Greentech Media Inc. reported that VC firms invested $836.1 million in 59 green technology deals in the first quarter of 2009—roughly the same level of investment the industry saw in 2007. Despite the stagnation, however, venture capitalists remain bullish on the sector and hopeful that they’ll see some of their saplings thrive
Despite the situation, many solid investment opportunities do exist.
Solar, wind and biofuel companies appear to look promising and as far as Wall Street is concerned, they are also developing a bit of a track record.
What do you, our readers think? Are investors being guided away with just cause, or is the caution about clean technology a bit of a myth?