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Author: Shikhar Ghosh Publisher: ISBN: Category : Languages : en Pages : 21
Book Description
We examine the extent to which venture capital is adequately positioned for the rapid commercialization of clean energy technologies in the United States. While there are several startups in clean energy that are well-suited to the traditional venture capital investment model, our analysis highlights a number of structural challenges related to VC investment in the sector that are particularly acute for startups involved in the production of clean energy. One of key bottlenecks threatening innovation in energy production is the inability of VCs to exit their investments at the appropriate time. This hurdle did exist in industries such as biotechnology and communications networking that faced a similar problem when they first emerged, but was ultimately overcome by changes in the innovation ecosystem. However, incumbents in the oil and power sector are different in two respects. First, they are producing a commodity and hence face little end-user pressure to adopt new technologies. Second, they do not tend to feel as threatened by potential competition from clean energy startups, given the market structure and regulatory environment in the energy sector. We highlight that the problem is unlikely to get solved without the active involvement of the government. Even if it does, historical experience suggests it may take several years.
Author: Shikhar Ghosh Publisher: ISBN: Category : Languages : en Pages : 21
Book Description
We examine the extent to which venture capital is adequately positioned for the rapid commercialization of clean energy technologies in the United States. While there are several startups in clean energy that are well-suited to the traditional venture capital investment model, our analysis highlights a number of structural challenges related to VC investment in the sector that are particularly acute for startups involved in the production of clean energy. One of key bottlenecks threatening innovation in energy production is the inability of VCs to exit their investments at the appropriate time. This hurdle did exist in industries such as biotechnology and communications networking that faced a similar problem when they first emerged, but was ultimately overcome by changes in the innovation ecosystem. However, incumbents in the oil and power sector are different in two respects. First, they are producing a commodity and hence face little end-user pressure to adopt new technologies. Second, they do not tend to feel as threatened by potential competition from clean energy startups, given the market structure and regulatory environment in the energy sector. We highlight that the problem is unlikely to get solved without the active involvement of the government. Even if it does, historical experience suggests it may take several years.
Author: Charlotte Ledgaard Steffensen Publisher: ISBN: Category : Languages : en Pages : 106
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: Matthias van den Heuvel Publisher: ISBN: Category : Languages : en Pages :
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: Tony Seba Publisher: Tony Seba ISBN: 0615335616 Category : Business & Economics Languages : en Pages : 294
Book Description
Solar Trillions reveals market opportunities worth $35+ trillion of the $382 Trillion we'll spend in energy by 2050. The author shows why solar is the only clean energy source that can scale and why disruptive tech make it inevitable. Here are the seven amazing opportunities. 1: Desert Power: $9 trillion To provide all of America's electricity today, we would need just 100-by-100-mile square of desert. 2: Powering Industry: $7.1 trillion 24/7 solar power is here-and can reliably run factories & industry. 3. Island/Village Power: $2.6 trillion Two billion people around the world pay up to 10 times today's PV cost. 4: Power to the People: $8.7 trillion With Solar BIPV, walls, windows, and bricks will make money for building owners. 5: Bottled Electricity: $1.5 trillion We will hit peak water before we hit peak oil. 6: Energy in a Box: $5 trillion The race for electricity batteries is on. Solar thermal is ahead. 7: Internet Times Ten: $6.5 trillion The eBay of electricity is coming.
Author: Michael Migendt Publisher: Springer ISBN: 3658172517 Category : Business & Economics Languages : en Pages : 158
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: Matthias van den Heuvel Publisher: ISBN: Category : Languages : en Pages : 0
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: Antoaneta Petkova Publisher: ISBN: Category : Languages : en Pages : 48
Book Description
This study examines the role of reputation on decision making under ambiguity. Drawing on social cognition and behavioral theories, we propose that a firm's reputation exerts dual pressures on its decision making under ambiguity. On the one hand, reputation increases firm aspirations for future performance and promotes engagement in risky strategies to achieve them. On the other hand, preserving the already established reputation requires firms to deliver consistent performance over time, which promotes greater use of risk reduction strategies. Our analyses of the U.S. venture capital firms' investments in the clean energy sector from 1990 to 2008 demonstrate that while reputable firms are more likely to invest in the emerging sector, they also employ risk reduction strategies more extensively. The sector's legitimation further influences these firms' investment decisions both directly and through its interaction with firm reputation.
Author: Enzo Wälchli Publisher: ISBN: Category : Languages : en Pages :
Book Description
Venture capital plays an important role during a start-up's development from a new venture to a mature company. As venture capitalists invests in the startup of the entrepreneur looking for attractive returns, the ability to successfully identify promising proposals is key. Over many decades, scholars have analyzed an extensive list of decision-making criteria to extract a set of factors deemed most important for successful venture capitalists during their target selection process. The objective of this thesis was to review existing literature on venture capital decision-making criteria, add a new theory called effectuation, i.e. the process of non-predictive reasoning, to the VC decision-making process and transfer findings from previous studies with entrepreneurs and business angels to the context of the formal venture capital industry. Within formal VC, special attention was given to the renewable energy domain. Thereby, the research focused on the effects of predictive and non-predictive (effectual) decision-making logics on venture capitalists' average investment size, investment performance and on possible differences between expert and novice investors. The results from the conducted survey indicated a significant expert-novice difference regarding their emphasis on effectual decision-making logics. Furthermore, and contrary to theoretical expectations, the findings suggest that investors with a higher emphasis on effectual logic are likely to invest larger average amounts in new ventures. A significant connection between predictive and non-predictive logics and investment performance could not be found in this study.
Author: Shikhar Ghosh
Author: Shikhar Ghosh
Author: Charlotte Ledgaard Steffensen
Author: 
Author: 
Author: Matthias van den Heuvel
Author: Tony Seba
Author: Michael Migendt
Author: Matthias van den Heuvel
Author: Antoaneta Petkova
Author: Enzo Wälchli