Pension Funds Backing Cleantech

Everyone knows that “cleantech” is going to be a big market, but this press release I got the other day really hits home. The Cleantech Venture Network says that by 2009 there will be $17 Billion in vc opportunities with $10 Billion in North America alone. To top it off, the states of New York, Oregon, Pennsylvania & California will together throw over a billion dollars into the hat on behalf of their various pension boards and other funds.
That’s exactly what I’ve always hoped would start happening with pension funds. They control a huge portion of the market (someone told me 40%, but that’s not verified). As a result they hold huge power as shareholders in existing companies as well as investors in new ones. The best part is that since pension funds are inherantly long-term investors, they have the patience to wait out the up front costs of going green, wheras other investors get skittsh at the first sign of a bad quarter – discouraging both innovation and long term thinking.
(thx chuck)