Making the Most of Venture Capital Industry Focus on Energy and Environment

Receive energy VC funds by staying clean, green and pitching your idea strategically

The venture capital industry focus on energy and environment has certainly zoomed into larger view. If you have an innovative idea related to energy or the environment you hope to see realized with energy venture capital funding, your timing could not be better.

A survey by the National Venture Capital Association indicates cutting edge energy or environment companies seeking funding are in an apparently recession-proof niche -- provided their business has a "clean technology" or "green" angle to it. The survey showed that 400 venture capitalists expect investment to drop in nearly every other area except clean technology. When making the most of venture capital industry focus on energy and environment, consider the following:

1. Increase your chances for success by incorporating a clean technology or green aspect to your business plan.

2. Compile a list of energy venture capital firms to present your sales pitch.

3. Cast a larger net when seeking funding by considering alternative VC energy funding sources.

Add a "green" or "clean" angle to your energy venture capital plan

Alternative fuels, clean coal technologies and eliminating U.S. dependence on foreign oil have been ringing in the ears of anyone who listens to the news. Venture capitalists appear to agree and are all ears when it comes to hearing environmentally friendly and clean technology related sales pitches.

Compile a list of energy VC firms your group should target to pitch its idea

There are hundreds of venture capital firms across the country and even more internationally. Your chances to receive VC funding improve if you target venture capital firms that have indicated an interest in investing in energy start-ups or have invested in energy related endeavors.

Cast a wider net by pitching to lesser-known sources for energy VC funds

It's worth considering funding sources not as well-known as the more popular, private for-profit venture capital firms. Educational institutions, state and federal governmental agencies and non-profits can also award VC funding.
  • Keep an eye on what is happening at state and local levels of government regarding clean energy legislation. At the state level, any new regulations may require you to shift or refocus the angle of your pitch for energy venture capital funds. At the federal level, policy shifts and new legislation could translate into a funding change for venture capital for energy projects.

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