VCs Expect Growth In Green Technology

Jun 12 2009 | 1:00am ET

Venture capitalists expect investment in green technology to show the most rapid growth in the coming years, according to the annual Global Trends survey by Deloitte Research and the National Venture Capital Association (NVCA).

Over 60% of the 725 venture capitalists surveyed said they expected investments in green tech to increase over the next three years. They also expect growth in medical devices. In contrast, interest in more established sectors like semiconductors and software is expected to wane.

"The venture capital industry will evolve significantly in the next few years as the asset class responds to a Darwinian contraction resulting from the recession, the rise of innovative industry sectors such as clean technology and the continued interest in venture capital outside the United States," said Mark Heesen, president of the NVCA."

The report also found that investors expect greater investment in the second half of 2009 than was seen in the first.

The report also touches on some of the difficulties attached to green tech investment. Energy companies, for example, often need significant sums of money to commercialize their technologies. The millions (sometimes hundreds of millions) invested in solar and biofuel companies is far in excess of the amount typically required by an IT or social-networking company.

RELATES LINK:

Deloitte & NVCA Report: Global Trends In Venture Capital (PDF)


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...