PE = -KE

So I talked with some investors recently about why they’re disbanding like disturbed flies from the cleantech space. Investments in the cleantech space have been steadily declining over the last few years, say new reports from everywhere – Cleantech Group, National Venture Capital Association/Pricewaterhouse Coopers, Bloomberg New Energy Finance. The latest report from NVCA/PWC showed $297 million flowing into 40 venture deals in the third quarter of 2013, a 20% drop from the second quarter and marking the 7th consecutive decline.

The short story is, cleantech is a new space with a lot of risk and investors flew because their tails got lit on fire. They thought cleantech would be like IT and software, with similar timescales and returns. Instead, “a lot of money went into very capital intensive companies that were pursuing commodity markets, with huge time risk,” said Peter Hebert of New York-based venture firm Lux Capital. Cleantech…

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