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Archive for May 15th, 2009

Here is a worrying story in regards to investments in the cleantech sector. As the bailout programs makes their way around unfit companies, cleantech investments have taken a dive.

One may think that boards and investors are looking to cash in on this crisis before orivate equity is put up. Here is  some quotes from a IBT article posted this week.

“Cleantech companies received less than half venture capital (VC) investments in the first quarter of 2009 than they did a year ago, but the industry looks forward for government funds for recovery, according to industry analysts.

During the period through March, venture capitalists invested in 24 clean energy deals raising $227 million, a decline of 63 percent in capital and 48 percent in terms of deals compared to the same period of 2008, according to an Ernst & Young LLP analysis.

“Despite the intense challenges of raising capital during the past four months, government initiatives and corporate commitments are points of light for cleantech companies,” said Joseph A. Muscat, Americas Director of Cleantech, Ernst & Young LLP.”

A quite possible reason for this might be the government plan of putting the TARP funds to use in this sector as well.

“Government funding from the U.S. stimulus package is expected to pour more than $100 billion dollars in direct spending, loan guarantees and incentives into cleantech in energy, water and environment, Ernst & Young noted.”

Read the full article here.

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