Funding For California Clean Tech Shifts From Venture Capital
Tuesday, October 1, 2013
SAN DIEGO The clean technology sector continues to create jobs in California, but how that's being paid for is changing.
The clean technology sector continues to create jobs in California, but how that is being paid for is changing
A new report by the nonpartisan group Next 10 found funding for the emerging clean technology sector is shifting out of the hands of venture capitalists.
The survey found different types of investors are becoming more important to clean technology companies. That may be, in part, because clean-tech is maturing.
Venture capital firms provided most of the sector's funding, but they tend to focus on emerging technologies at startup companies. That might explain why less venture capital is finding its way to clean technology firms.
"There has been a decline over the last year or so in the total dollars that have been involved," said Noel Perry, founder of Next 10. "And like all industries, there are ebbs and flows. And that certainly has happened to the clean tech industry."
More corporate investors are sinking money into clean-tech products and firms as the products move closer to market, according to Perry.
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