Cleantech investment and private Investment equity: an industry characteristics survey
Key findings General lack of experience in a large, fragmented, global sector with significant legal and regulatory issues as well as technical risks. Survey respondent I think the investment mood for revenue-producing investments transcends the cleantech sector. However, the lack of stability in regulatory frameworks and subsidies contributes to the already existing issues with a complex new technology investment decision. Survey respondent
• 45.8% of investors believe that cleantech investments are regarded with greater caution than other venture capital or private equity investments • the cleantech sector is being driven by a number of macro factors, including, social awareness, fears of climate change, regulatory pressure and government subsidies
Few (if any?)VCs have adequate resources to fully due diligence new technologies. Risk is therefore assessed subjectively with the tendency to wait for the market to demonstrate confidence and commitment. John Lewis, 2DHeat Limited Management and technical competence of industry is relatively low. Still too many inventors and not enough engineers/business execs running the businesses. Survey respondent Fear of another dotcom scenario yet this is only going to be a long term tangible market. Stephen Gilbert, Windsave Holdings Plc
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