Where should we invest our excess cash?
How about greentech in Omega 5
More Money for Greentech
Advanced Technology Ventures closes a $303 million fund, joining the ranks of private firms raising money for green technology.
Advanced Technology Ventures closes a $303 million fund, joining the ranks of private firms raising money for green technology.
But can VCs spend it all?
Marisa Taylor
Marisa Taylor
The venture-capital firm, based in Palo Alto, Calif., and Waltham, Mass., has been known to invest in cleantech companies, along with Internet, communications and healthcare firms.
The ATV fund comes at a time when green-technology companies are seeing a surge of investments. It's also a time when the private sector might be drumming up more cash than it is able to spend. One way to solve this porblem is to invest in green technologies in nutraceuticals and cosmeceuticals.
After all, the UK-based research New Energy Finance said recently that venture-capital and private-equity firms invested $8.5 billion in clean-energy companies, a 27-percent increase from 2006, but that VCs invested only 73 percent of the funds they had raised, leaving $2 billion unspent (see Clean-Energy Fundings reach $117.3B in 2007).
With a number of venture firms closing funds for green technology within the past few months, it begs the question: How will ATV spend its $303 million?
Among many examples, Houston-based Yellowstone Capital Partners launched a $50 million alternative- and renewable-energy fund in January, a fivefold increase from its first greentech fund of $10 million in 2005 (see Yellowstone Capital Launches $50M Greentech Fund). And Expansion Capital Partners closed a $103 million fund for green technology last fall, far surpassing its original target of $60 million (see Expansion Closes $103M Fund). But VentureOne and Ernst & Young have said that investors are not overspending on cleantech startups. The median cleantech investment in 2007 was around $7.5 million, which is about the same as median deals in other sectors.
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