Venture capitalists are expecting to see green in the technology sector this coming year, and that is not just inside their wallets, as clean efficient technologies in the life sciences and the Internet are predicted to explode.
In fact, the industry is expected to invest about $27 billion in the industry, according to the consensus estimate of 170 venture capitalists polled by the National Venture Capital Association.
The news is good for budding green-leaning technology companies, as some in the investor expect even bigger numbers. The study found 25 percent of survey respondents forecast investments of $30 billion to $39 billion. That would be the most VC money poured into the tech sector since the 2000 bubble year.
“There are major opportunities for venture capitalists to totally reshape the energy market throughout the world as governments, consumers, and companies are demanding innovation in this space,” said NVCA president, Mark Heesen. “However, as has been demonstrated in the IT and life science arenas, investing in new technologies can be fraught with pitfalls and is not for the inexperienced or the faint of heart. Prudent, long-term, knowledge based investment in cutting edge technologies has been the hallmark of venture capital in the past and should be the mantra in the CleanTech space as well. Short-term ‘tourists’ should steer clear.”
In the survey, 80 percent of respondents said they will increase investments in this clean tech sector in 2008. In 2007, VCs invested $2.5 billion in CleanTech companies, or 9 percent of all funds invested. The percentage has risen steadily from 2 percent in 2003.
In fact, the industry is expected to invest about $27 billion in the industry, according to the consensus estimate of 170 venture capitalists polled by the National Venture Capital Association.
The news is good for budding green-leaning technology companies, as some in the investor expect even bigger numbers. The study found 25 percent of survey respondents forecast investments of $30 billion to $39 billion. That would be the most VC money poured into the tech sector since the 2000 bubble year.
“There are major opportunities for venture capitalists to totally reshape the energy market throughout the world as governments, consumers, and companies are demanding innovation in this space,” said NVCA president, Mark Heesen. “However, as has been demonstrated in the IT and life science arenas, investing in new technologies can be fraught with pitfalls and is not for the inexperienced or the faint of heart. Prudent, long-term, knowledge based investment in cutting edge technologies has been the hallmark of venture capital in the past and should be the mantra in the CleanTech space as well. Short-term ‘tourists’ should steer clear.”
In the survey, 80 percent of respondents said they will increase investments in this clean tech sector in 2008. In 2007, VCs invested $2.5 billion in CleanTech companies, or 9 percent of all funds invested. The percentage has risen steadily from 2 percent in 2003.
Source: TMCnet
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