Cleantech Angel Network of Networks: Will it Work?

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