The Role of Venture Capital and Governments in Clean Energy: Lessons from the First Cleantech Bubble PDF Download

Author: Matthias van den Heuvel
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
After a boom and bust cycle in the early 2010s, venture capital (VC) investments are, once again, flowing towards green businesses. In this paper, we use Crunchbase data on 150,000 US startups founded between 2000 and 2020 to better understand why VC initially did not prove successful in funding new clean energy technologies. Both lackluster demand and a lower potential for outsized returns make clean energy firms less attractive to VC than startups in ICT or biotech. However, we find no clear evidence that characteristics such as high-capital intensity or long development timeframe are behind the lack of success of VC in clean energy. In addition, our results show that while public sector investments can help attract VC investment, the ultimate success rate of firms receiving public funding remains small. Thus, stimulating demand will have a greater impact on clean energy innovation than investing in startups that will then struggle through the “valley of death”. Only with demand-side policies in place should governments try to plug funding gaps by targeting clean energy startups with low potential for outsized returns that will continue to find it hard to attract private capital.

Author: Matthias van den Heuvel
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
After a boom and bust cycle in the early 2010s, venture capital (VC) investments are, once again, flowing towards green businesses. In this paper, we use Crunchbase data on 150,000 US startups founded between 2000 and 2020 to better understand why VC initially did not prove successful in funding new clean energy technologies. Both lackluster demand and a lower potential for outsized returns make clean energy firms less attractive to VC than startups in ICT or biotech. However, we find no clear evidence that characteristics such as high-capital intensity or long development timeframe are behind the lack of success of VC in clean energy. In addition, our results show that while public sector investments can help attract VC investment, the ultimate success rate of firms receiving public funding remains small. Thus, stimulating demand will have a greater impact on clean energy innovation than investing in startups that will then struggle through the "valley of death". Rather than investing themselves in startups bound to struggle through the valleys of death, governments wishing to support clean energy startups can first implement demand-side policies that make investing in clean energy more viable.

Author: Bronwyn H. Hall
Publisher: Oxford University Press
ISBN: 0197630944
Category : Business & Economics
Languages : en
Pages : 649

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The first comprehensive textbook covering all aspects of the economics of innovation and the role of intellectual property in encouraging or discouraging innovation. Innovation is widely viewed as the engine behind economic growth, and it has assumed increasing importance in contemporary economic research. In The Economics of Innovation and Intellectual Property, Bronwyn H. Hall and Christian Helmers introduce readers to the use of economic analysis for the understanding of technical change and the innovative process, its determinants, and consequences. The authors cover innovation basics, the measurement of returns to innovation for individuals and the economy, and the use of intellectual property protection by innovators. They focus on the various ways patents have been used by industry to secure returns to innovation, as well as the strategic use of patents, and they emphasize present-day technologies including pharmaceuticals, software, and AI. Clearly organized and accessible, The Economics of Innovation and Intellectual Property offers a useful introduction to economics, business, public policy, and legal studies, and provides a comprehensive collection of references and information from a variety of sources across disciplines. It also includes various boxes with definitions and examples, as well as a brief mathematical appendix explaining concepts that may be unfamiliar and an introduction to data sources.

Author:
Publisher: BoogarLists
ISBN:
Category :
Languages : en
Pages : 13

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Author: Michael Migendt
Publisher: Springer
ISBN: 3658172517
Category : Business & Economics
Languages : en
Pages : 158

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Book Description
Michael Migendt explains the role of alternative investments in supporting the growth of a sustainable economy and recognizes levers that policy makers, managers and entrepreneurs could use for further accelerating green innovation through finance. He focuses on specific examples of alternative investments into green industries, companies, projects, and infrastructure, covering the developments along the innovation chain. Especially the acceleration of green technologies and the in this context occurring interrelations between the three areas of finance, innovation, and policy are key to this work.

Author: Charlotte Ledgaard Steffensen
Publisher:
ISBN:
Category :
Languages : en
Pages : 106

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Book Description
Problem is not perceived as being as risky as before. There is an indication towards that the clean energy sector is not constrained by lack of government R&D to the same degree as it was. This could be subject for further investigation. Further, the study revealed that regulatory risk is still perceived as a problem for venture capital investment in clean energy. Regulation and government intervention can work in aid of clean energy but might also influence it in a negative direction. Moreover, an interesting finding is that the research is indicated that an exit route through a trade sale has become less of a problem for venture capital investors in cleantech. Next, this research also came to a conclusion on product market risk, which was that that the same indication applies for product market risk as for exit risk. The results of the analysis and the discussion indicate that the clean energy sector is not constrained by the fact that individuals are not willing to pay for social benefits making it difficult to gain financial value from clean energy technologies. Furthermore, the market seems to view new energy technologies with less scepticism than 6 years ago. The research has developed an increased understanding of venture capitalists' perception of the clean energy, ICT and life sciences sectors, but in particular of the clean energy sector, which this research set out to investigate.

Author: Ron Pernick
Publisher: Harper Collins
ISBN: 0061740462
Category : Business & Economics
Languages : en
Pages : 338

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Book Description
When industry giants such as GE, Toyota, and Sharp and investment firms such as Goldman Sachs are making multibillion-dollar investments in clean technology, the message is clear. Developing clean technologies is no longer a social issue championed by environmentalists; it's a moneymaking enterprise moving solidly into the business mainstream. In fact, as the economy faces unprecedented challenges from high energy prices, resource shortages, and global environmental and security threats, clean tech—technologies designed to provide superior performance at a lower cost while creating significantly less waste than conventional offerings—promises to be the next engine of economic growth. In The Clean Tech Revolution, authors Ron Pernick and Clint Wilder identify the major forces that have pushed clean tech from back-to-the-earth utopian dream to its current revolution among the inner circles of corporate boardrooms, on Wall Street trading floors, and in government offices around the globe. By highlighting eight major clean-tech sectors—solar energy, wind power, biofuels and biomaterials, green buildings, personal transportation, the smart grid, mobile applications, and water filtration—they uncover how investors, entrepreneurs, and individuals can profit from this next wave of technological innovation. Pernick and Wilder shine the spotlight on the winners among technologies, companies, and regions that are likely to reap the greatest benefits from clean tech—and they show you why the time to act is now. Groundbreaking and authoritative, The Clean Tech Revolution is the must-read book to understand and profit from the clean technologies that are reshaping our fast-changing world.

Author: Ron Pernick
Publisher: Harper Collins
ISBN: 0062088467
Category : Business & Economics
Languages : en
Pages : 375

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Book Description
From Ron Pernick and Clint Wilder, the authors of Clean Tech Revolution, comes the next definitive book on the Clean Tech industry. In Clean Tech Nation, they shine a light on the leaders at the forefront of the growing movement. USA Today called Pernick and Wilder’s groundbreaking first book, “one of the few instances in this genre that shows the green movement not in heartstring terms but as economically profitable.” Clean Tech Nation expands on their original idea to provide concrete analysis on the efforts of the U.S. and other countries in this area, and provides a clear way forward for the U.S. so that it can lead the pack as it competes with the rest of the world.

Author: Varun Rai
Publisher:
ISBN:
Category :
Languages : en
Pages : 33

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Book Description
Since emerging as a capital destination in the late 1990s, the experience of venture capital (VC) in clean energy technologies (CET) has been checkered. Haphazard investment activity in the early 2000s paired with high-profile failures of once-promising CET ventures to produce a general reticence toward CETs in the investment community. Since then, attitudes regarding the potential for financial venture capital or public policy to meaningfully reintroduce vigor in CET innovation have been characterized by skepticism, in no small part due to notions of capital intensity and policy risk formed during the initial waves of CET investment. Despite its importance, there has been little systematic research of CETs vis-à-vis venture capital, public policy, or the broader investment system. In this paper we revisit this area of inquiry, focusing on the role of venture capital in funding innovation in clean energy, especially in light of the lessons learned over the past decade in the U.S. The core data for our analysis comes from a series of in-depth, semi-structured expert interviews with individuals from venture capital firms, relevant public agencies, corporate venture capital entities, as well as for-profit and not-for-profit investment houses, all of whom were active in the CET space before, during, and after the peak of CET in the late 2000s. We reevaluate common notions regarding the drivers and barriers of VC and strategic corporate investment in CETs and uncover several nuanced insights that inform approaches for addressing barriers to unlocking the full potential of VC in funding clean energy innovation.

Author: Monika Köppl-Turyna
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
In this paper we analyze how different types of venture capital investments - private, public and indirect public - affect performance of "cleantech" start-ups in Europe. We hand collected a unique dataset on the institutional setting (public/indirect/private) of almost 15000 investors in Europe, which we combine with portfolio-company and deals data from Preqin to assess performance. Two results stand out: First, public venture capital does not underperform private venture capital in a broad crosscountry sample of European deals. This is a novel finding, as it doesn't confirm some previous findings in the literature that government-backed VCs underperform their private counterparts. We also find that there is no significant difference between direct and indirect government support of venture capital for cleantech investments. Second, GVCs perform well when they specialize in cleantech investments and are well connected within a network of other investors.