Cleantech Funding - What's Next If You're Looking For Cleantech Investors?

By Author: skipso
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Just a couple of years ago, more than $1 billion was being spent on cleantech funding every quarter - and that number was on pace to double in a year's time. However, cleantech investors are not as generous today as they once were. In fact, China has surpassed the U.S. when it comes to supplying cleantech grants.

Sure, cleantech funding still raises more than $1 billion every quarter, but the industry is not seeing the growth it once had. Amazingly, in some cases, the number of available cleantech grants is actually dropping.

The hardest-hit companies have been those that are looking for early-stage cleantech investors. After all, these companies are typically a year away from doing business, so they don't have any revenue. Especially in this economy, that's not something that cleantech investors are willing to gamble on.

Making things tougher in the cleantech funding world? The recent failure of Solyndra.

The company that many called the "poster child for President Obama's green push" is now covered in failure. With more than $500 million in federal cleantech grants, Solyndra ...
... tried to sell expensive solar panels by promising that they would provide a net savings for customers down the road. However, all Solyndra managed to do was create an over-supply of solar panels, which drove down prices all over the world.

Now, both cleantech investors and companies alike are wondering what effect Solydra will have on the cleantech funding world.
Will investors become more skeptical of cleantech funding altogether? Will anticipated changes at the Department of Energy make cleantech grants more trouble than they're worth?

Even before Solyndra's bankruptcy, many of the companies looking for cleantech funding made it clear that they didn't want Washington's input in their industry. According to a recent study by Deloitte, most of the companies interviewed did not even apply for stimulus cleantech grants. Even though private cleantech investors are not as plentiful as they once were, companies believe there is still enough private cleantech funding to go around.

So where is private cleantech funding going?

Right now, companies that specialize in energy efficiency are seeing the highest response from cleantech investors. That's because the demand for it is so high. After all, virtually every company and household wants to save money on their energy bills. Developing energy efficiency solutions is something that doesn't require a ton of capital, but it produces fast results - and that's music to any cleantech investor's ears!

If you need cleantech funding, what should you be hoping for?

The price of oil is keeping the supply of cleantech grants high for now. As long as oil prices skyrocket, there is a legitimate need for clean energy. If you're responsible for luring cleantech investors, you had better keep your fingers crossed that oil remains a prohibitively expensive commodity!

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