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October 25, 2006
Study Finds VCs Are Not Really Investing In Good Industries
Swiss academic, Rolf Wüstenhagen, who we run into at venture conferences in Zurich, published in January a report entitled Do Venture Capitalists Really Invest In Good Industries?
It is a good study and has some informed analysis on the risks and rewards of alternative energy investing. At the risk of oversimplifying, here is our take on the content.
Premise: Energy sector is huge, alt energy is showing signs of hugeness and therefore VCs should be investing in it
Research Result: VCs are not investing in alt energy the way they should be.
The report came out in January and is based on a recent survey but some of the data is aging and may not reflect the current situation. We think he'd have a much better argument today. He could then use data on private equity and VC-backed exits such as Q-Cells, Conergy, and Renewable Energy Corporation.
This graphic from New Energy Finance would grab the VC's attention.
With that in mind, the results of a new survey would likely show more open-minded generalist VCs and the emergence of several new smartmoney driven cleantech funds in the works, such as zouk ventures and former 3i man, Partick Sheehan’s ETF Fund to boot.
Read - Do venture capitalists really invest in good industries? Risk-return perceptions and path dependence in the emerging European energy VC market
Posted on October 25, 2006 06:56 AM | Posted to Alternative Energy | Permalink
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