Asia and Developing Countries: Investment and Operating Execution of Cleantech Promise

For the last few years, I have been noting the advancing rise of cleantech venture investment which was essentially non-existent in 2003 as alternative energy (as it was then called) was not a focus area for the traditional venture community.  Over the past few years venture firms have scrubbed through their historical portfolio companies re-labeling prior investments to cleantech where they can to show their long-term commitment to the area.  The U.S. is more open to accepting failure enabling innovation resulting in the largest collection of venture capitalists and their benefactors, the entrepreneurs and their nascent company ideas to have a change to become products and eventually successful businesses.   However, what has been learned is that cleantech is not the capital efficient business of Internet or software investment, and has the capital requirements of a full-blown semi-conductor facility (e.g., like with PV solar), coupled with the regulatory issues of biotech (requiring testing, approvals and permitting), with an overlay of government support and mandates required to make the business economically viable.  And here is the rub… the U.S. lack of long-term planning (aside from the support of EVs and associated Batteries) for renewable energy, taxes on carbon, and generally long-term commitment, has resulted in the development of an idea here in the U.S., but the large scale deployment (which creates jobs and a broader tax base) is occurring overseas, particularly in China.  The article written by Thomas Friedman of the NY Times resonates well (particularly since I knew of the company he mentions and witnessed the difficulty of that recycling business to scale here in the US whereas it is experiencing success in China):    http://www.nytimes.com/2010/09/19/opinion/19friedman.html

Advertisement