Report: Government Must Spend Quickly On Cleantech Or Face Bankruptcies

Feb 25 2009 | 9:13am ET

“Urgency surrounds numerous cleantech companies,” says a new PriceWaterhouseCoopers report on the state of venture-backed alternative energy companies.

The report says the U.S. government must begin spending the $83 billion it’s earmarked for cleantech in its $787 billion stimulus package by July to "avert a raft of potential bankruptcies or crippling retrenchments through 2009.”

In announcing the stimulus package, U.S. President Barack Obama promised money to the cleantech sector to tackle climate change and create jobs.

Tim Carey, U.S. cleantech leader for PriceWaterhouseCoopers, told Reuters that capital markets and exit markets (the option of selling off start-ups to other firms or taking them public) are now closed to the cleantech firms that have benefitted from the recent surge in VC investment. (And what a surge it was – according to the report, venture capitalists upped their investment in cleantech by 1500% in recent years, from $271 million in 2003 to $4.1 billion in 2008).

In the new economic climate, however, companies that had expected to ramp up operations rapidly find themselves unable to take the next step. Venture capitalists are finding it more difficult to sell companies or make initial public offerings, says the report.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.