Comments on: Unless You Are Clean Tech, VCs Likely Not Investing

By: LeRoy Musick

LeRoy Musick — Tue, 20 May 2008 15:31:07 +0000

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By: sb

sb — Tue, 20 May 2008 12:58:45 +0000

I agree that investments in clean tech are very valuable to our society as a whole and the planet in general. What I’m pointing to is that most VCs are still seeking profit as their purpose, rather than realizing that profit is a consequence of a well-executed business.
Further, I do believe that it is distinct for green entrepreneurs; most of the time it is not a widget or a RE project at the core of their model, but social utilities that are far harder for ROI-driven VCs to grasp. When all you see is the money that can result, you fail to see the benefits to society and the environment that will result. And they are not mutually exclusive!
Disclaimer: there are definitely some amazing green-oriented VCs out there, like Good Capital, Funk Ventures etc. But, most are polar opposites.

By: Drew

Drew — Tue, 20 May 2008 11:21:55 +0000

Scott- GREAT article. Thanks for telling it like it is!

By: Clara

Clara — Fri, 16 May 2008 21:23:36 +0000

You’re also forgetting VCs like Good Capital (http://www.goodcap.net/), who are interested specifically in the sustainability sector. I agree to the point that VCs are always looking for the next “new” thing, and for one, solar isn’t really “new” anymore. Anyway, starting your own company in general is hard, and it may fail. There most certainly should be more of a push, or some kind of policy, such as “we won’t fund you if you don’t have an environmental policy.”
That would be really interesting to ask some VCs if they do have a eco policy!

By: Nick Aster

Nick Aster — Fri, 16 May 2008 15:05:57 +0000

Hey Scott – I don’t think the role of VC is to fund every imaginable thing, plus a traditional venture capitalist is always going to require a certain return, usually strictly financial. I don’t think this has anything to do with whether or not they’re interested in “green”.
Also, I know loads of socially and environmentally conscious startups that are doing pretty well with and without VC funding, and finally, you say that “one of these clean tech ideas will revolutionize the way energy is produced and therefore help to transform our society”
Man, that’s a pretty big deal, no? I’m more than happy to let VCs play their game if the outcome is what’s quoted above. I think your advice is for small timers regardless of green and it’s sound, but I’m losing you when you talk about how it’s distinct for green entrpreneurs.