Thursday, December 8, 2011

Cleantech investment seen falling in 2012

Cleantech research and advisory firm Kachan & Co. predicts a decline in worldwide cleantech venture capital investing in 2012.

“There are eggshells across the sector for 2012,” Kachan notes in its year-end report. “Global economic uncertainty in particular is leaving some skeptical about the chances for emerging clean technologies.”

Kachan points to a slowdown in China’s economic engine as well as conflicting government policy signals as potential negative factors for the cleantech sector. “Don’t expect cleantech-friendly U.S. policy leadership in 2012, an election year.”

On the plus side, oil prices are forecast to rise in 2012, corporations are expected to take an even stronger leadership role and investment in solar innovation projects is “still strong and has remained so for years, while other clean technologies have risen and fallen in and out of investment fashion.”

Kachan called for an increase in global cleantech venture investment in 2011 when some others were predicting a cleantech collapse. “We were right. At this writing, total investment for the first three quarters of 2011 is already $6.876 billion, with the fourth quarter to report early in 2012. Given historical patterns, we expect 2011 to close out at a total of $8.8 billion in venture capital invested into cleantech globally. That’d be the highest total in three years, and second only to the highest year on record: 2008.”

“All in all, if you’re a cleantech entrepreneur seeking capital, our advice is brush up that PowerPoint and work the system now… while there’s still a system to work.”

Kachan’s predictions are available here.

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