Venture capitalist are experimenting with a new approach to clean-technology investment that isn’t centered on just energy startups.
Cleantech Group, released reports showing that venture capital firms globally invested $6.5 billion in clean tech companies in 2012, which is 33 percent lower than 2011 investments. Various promising clean energy startups have struggled in 2012 because of the availability of cheap natural gas as well as competition from inexpensive Chinese systems. Over the past year it seems that many institutional investors are losing interest in long-shot green energy startup companies.
Instead of shying away from clean technology investments, a small group of well-known corporate leaders, including Wal-Mart chairman Rob Walton, Gap chairman Bob Fisher, and Farallon fund founder Top Steyer, are supporting an investment firm called EFW (for Energy, Food, Water). EFW looks at long-term investments all along the clean energy chain, not just the startups. It focuses on investments from small private companies to large-scale projects that will develop energy, food, and water resources.
As the global population continues to grow, energy, food, and water resources will likely have higher demands which can result in a unpredictable prices and availability. The group sees a benefit to it’s flexibility, because it can put money into any sector, anywhere in the world, at anytime.
Source: A new way to invest in green energy, Fortune Tech