Business Week: A Bubble in Solar VC?
Many thanks to Kjartan for doing such a great job keeping things up to date here over the last couple of weeks... It was particularly great to read his post about the Energy Tech Investor Conference, which I hated to miss. But a couple of weeks of reading, relaxing and recharging were exactly what the doctor ordered, so a big bottle of liquid thanks is on its way to you, Kjartan!
It seems like the momentum around cleantech investing built visibly even during these past two weeks, with lots of media coverage and new deals.
In the most recent example, Business Week came out July 4th with another article talking about the increased activity in cleantech investing, and clean energy investing in particular. As is becoming the norm, good quotes by familiar faces, and a discussion about rising energy prices as a key driver.
What's interesting and a bit different in this article, however, is the mention at the tail end of the article that -- especially related to solar investments -- "the current rush to invest could create a bubble similar to the one that happened with fuel cells a few years ago."
We're probably a long way from that. A handful of big bets, placed in a very promising and potentially huge market, do not a "bubble" make. But it's a sign that the debate is moving strongly past the "does it even make sense to invest?" question, into the "is it too late to get in?" question. Especially from a broader cleantech perspective, of course, the answer to that latter question is a resounding "no".
It seems like the momentum around cleantech investing built visibly even during these past two weeks, with lots of media coverage and new deals.
In the most recent example, Business Week came out July 4th with another article talking about the increased activity in cleantech investing, and clean energy investing in particular. As is becoming the norm, good quotes by familiar faces, and a discussion about rising energy prices as a key driver.
What's interesting and a bit different in this article, however, is the mention at the tail end of the article that -- especially related to solar investments -- "the current rush to invest could create a bubble similar to the one that happened with fuel cells a few years ago."
We're probably a long way from that. A handful of big bets, placed in a very promising and potentially huge market, do not a "bubble" make. But it's a sign that the debate is moving strongly past the "does it even make sense to invest?" question, into the "is it too late to get in?" question. Especially from a broader cleantech perspective, of course, the answer to that latter question is a resounding "no".
posted by Rob Day at 9:17 AM
1 Comments:
Rob & Kjarten - excellent blog. Just came across it the other day. What's interesting about Solar is the deja vu. We invested in Astropower in the late 80s, and despite some successes, they and others never achieved the yields required to make the technology affordable for prime time. Hopefully a new generation of technology, further government support, and $50 oil will finally make solar a reality. I agree with you that 5-10 solar deals is not a bubble, just soupe-de-jour on Sand Hill Road.
Cheers,
David Berkowitz
Ventures West Capital
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