Cleantech Startups Funding
For many investors and entrepreneurs there's a feeling that the technology industry will be hurt by a significant recession. But many believe that the Cleantech sector, which is targeting a $4 trillion energy market, might be an exception. Cleantech investments typically require longer time periods and more money to mature than Internet or software startups, and they enjoy the support of governments and a populace worried about energy issues and global warming.
A panel called "Funding Alternatives for Clean Tech Startups" held in Santa Clara, California, on October 14th, by Intel Capital and angel investor network, Keiretsu Forum, for the California Clean Tech Open, , sought to give advice to young companies who plan to look for funding in the downturn. Rachel Sheinbein, an associate at venture firm CMEA who is also a Keiretsu member, told Chris Morrison of Venturebeat.com before the meeting that most angel investors aren't put off by the economic pain. "Now's the time to put some money into new things and find some good deals," she said. Marc Gottschalk, a lawyer at William Sonsini who helps run the CCTO, is also guardedly optimistic. He told Morrison that as someone who sees plenty of deals, he thinks venture funders will look past a recession when investing in newer cleantech startups. "I know firms like Sequoia are telling their firms to be lean and mean," he said. "But cleantech investments are for a three to five year window, so you can't make your bets on that right now."
