Cleantech Angel Network of Networks: Will it Work?
The Hyper Team @ Venture Hype | Apr 29, 2009
As another Earth Day comes and goes and the “Green” concept continues to grow in popularity, consumers are paying more attention to the impact products have on the environment. This increased focus on environmentally-friendly products means growing opportunities for those companies seeking to capitalize on this market.
One new angel network has emerged to do just that. Cleantech was launched by three investor groups to enable global deal collaboration. The network consists of Kuwait Petroleum Energy Ventures, the CalCEF Clean Energy Angel Fund and Keiretsu Forum’s Cleantech Investment Committee. This cleantech angel investing group is a strategic partnership dubbed Cleantech Angel Network-of-Networks. [1]
The current economy and the falling price of oil appear to be scaring venture capitalists away from cleantech investing, making it more difficult for these startups to find seed money. The Cleantech Angel Network of Networks hopes to close the gap created by the exodus of VCs from this space. The group offers as much as US$40 million in investment capital and will provide a central location for much-needed early-stage funds. [2]
The market has come a long way since the first Earth Day was established in 1970. In fact, how many contemporaries believe that this event came about as a result of the recent focus on Global Warming? The complementing media attention has certainly helped and this continued focus will expand the demands put on developers. First-to-markets will likely grab market leadership, but their vision has to be sustainable.
While clean technology startups have significant opportunity for sustainability, anything “Green” is liable to grab at least some attention. At the Zino Society Green Investment Forum, companies with visions of saving the planet – or at least capitalizing on those consumers that hope to – presented their plans for getting rich in a greener world. Five companies in particular made waves with their approach to more efficient and earth friendly products. [3]
These ideas included energy production units, recycled carpet, mosquito control technologies that use 99 percent less pesticide, consumer kits that monitor home appliances for energy consumption, and a media company that is establishing a “Green” magazine and seeking funds to expand its online offerings. The winner of the Zino Society funds is not nearly as interesting as those startups that recognize opportunity with their ideas. [3]
As the “Green” movement continues toward saturation of the market, you might find that the fad will begin to lose its hold and something else will take its place. Sure, a focus on the environment will likely continue, especially as the concept of Global Warming continues to be taken as truth, but positioning and growth will greatly depend on where this market is going. Technology developments will be important, but what is most sustainable in a world of finicky consumers?
As for the cleantech area, Dan Adler, president of CalCEF, believes the market is prime for the new Cleantech Angel Network of Networks and that it represents a chance to “press reset and create this network with global reach to invest in these innovative technologies.” [1]
Will it work? We’ll have to wait and see.
Notes:
[1] Cleantech ‘Angel Network of Networks’ Goes Global
[2] Cleantech Angel Investors Form A Network For Finding Deals
[3] Five Intriguing Green Startups Seek Angel Bucks on Earth Day
Filed Under: Angel Group • News & Perspectives
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[...] Power Environment Engineering Co Ltd (QGLD) is one of the first Chinese companies to jump onto the clean tech bandwagon. The company manufactures wind energy turbines and equipment used to clean water and gas [...]
Things change so fast in the investment community, this year's darlings can end up in next year's dead pool, so this is indeed quite common.
“Saying green and actually being green are two different things, and consumers are beginning to ask a lot of questions about that.”
Very true, and the regulators seem to be working on regulating what and who can claim it's “green.”
Things change so fast in the investment community, this year's darlings can end up in next year's dead pool, so this is indeed quite common.
“Saying green and actually being green are two different things, and consumers are beginning to ask a lot of questions about that.”
Very true, and the regulators seem to be working on regulating what and who can claim it's “green.”
That's interesting – I haven't really thought of the green movement as a fad before. But it is interesting and somewhat concerning to hear that green ventures are having some difficulty lately.
By the way, I think that's an excellent graphic with the image of the tree in the light bulb.
[...] or clean energy is still of high interest, but it’s waning as people realize how far away we really are in [...]
Thank you for this information. I'd never heard of recycled carpet before, so that surprised me. The one thing about green, though. Consumers are eager for green, but at the same time, I'm sensing some skepticism about companies and products. Saying green and actually being green are two different things, and consumers are beginning to ask a lot of questions about that.
I am very much positive on this, and i quote “The Cleantech Angel Network of Networks hopes to close the gap created by the exodus of VCs from this space. The group offers as much as US$40 million in investment capital and will provide a central location for much-needed early-stage funds. Its so obvious on their strategies that it will really be a success.
well .. i guess it will work since our global concerns now is to protect our environment , and which means that anything “Green” that is out of the market (food and the likes) consumers are likely to patronize it or buy it.
On the way I see it, it has a positive effect not just on the angel members but to the whole world. Companies offering fossil fuels for oil will surely not last long. Besides that investing in something that would certainly be of great help in the to earth and its people, this is also a great opportunity for investors to invest in something that would obviously boom in the future specially now that you can see the status of their success rate to be high.
It certainly has a positive effect on the new angel members who want to join the network and in the long term does a large good to mother nature by helping people to get to the clean energy stuff by investing in future technologies which can revolutionize our world. Further since the success rate of Angel networks are pretty high it would soon lead to a technology and a product liked by all.
Great discussions guys. What do you think of the Cleantech Angel Network of Networks though? e.g. positive, negative, neural? Why?
The fossil fuels are not going to last long and the existing ones would soon dry up. It is high time that corporates show high interest in developing green energy. The trend had already started and it now requires substantial amount of investments with adequate laboratories. Green energy is the way to save the planet as well as to secure our future generations.
I hate to be the pessimist in the group but as long as fossil fuels are at a price level the public can live with, green companies will have a hard time getting money because of the lack of demand for their goods. During the summer of 2008 when gasoline prices skyrocketed, people were screaming for alternative fuels. But now with prices low and the economy doing poorly, people are worrying about how to make ends meet rather than how to keep the earth green. Maybe one day, this will happen, but for now, I don't see it happening.
I have a strong opinion that industries associated with green energy products would see rapid booming in the coming years when compared with other forms of industries. Moreover the number of people opting for green products are rising considerably and gradually year by year and with in a decade I hope that the green revolution would be in its end stages.
I have to agree with you. Sustainability in a market is a million dollar question for a new concept to settle in financial market. As this companies basically focus on the environment and hence they are gaining more attention from investors. Every investor wants to invest a significant amount of its resources in a strong and sustainable field which is easily offered by these companies.