Venture Capital – Chasing the Wrong Bus??
US Venture Capital funding of cleantech fell 55%, YoY, in Q3. However, the ‘efficiency’ segment grew 6% in the same period on 21% more deals. Reasons for these divergent trends abound, but include (a) the mis-fit of the VC model concepts that do not exploit Moore’s Law, (b) the weak IPO market, (c) disjointed and inconsistent US policy, especially in smart grid/transmission, (d) more stable fossil fuel prices, especially natural gas, (e) weak electricity demand, and (e) dim prospects for carbon-related legislation. In any event, the highest payback investments a company or consumer can make include (a) reduced transportation – of almost anything – food, manufactured goods, people, and (b) improving the efficiency of any energy consuming activity.