Until recently, it has seemed that “cleantech VC” was a four-letter word.
Or perhaps a term reserved for hushed whisphers of digust and distrust thanks to the financial woes in the sector about ten years ago. But, it appears that the tide may be turning. Here are three headlines that might give cleantech entrepreneurs some hope. #1: Renewal Funds just raised $145M to invest in cleantech (what?) Here are some highlights (link):
#2: ArcTern Ventures just raised $165M to invest in cleantech (oh my!) Here are some highlights (link):
#3: Clean Energy Ventures just raised $110M to invest in cleantech (gasp!) Here are some highlights (link):
But wait… Before all of us entrepreneurs get too excited about sending an email to these groups and receiving $10M in growth capital the next day, let’s remember this... Venture capital firms reject at least 95%+ of all the deals they review
Far less than 1% of startups raise capital from VC firms. The estimates vary:
In contrast, the last study above showed that “57% of startups are funded by personal loans and credit, while 38% eceive funding from family and friends.” These VC firms like low company valuations.
Fundraising takes a ton of time, and will distract you from running your business.
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