What’s all the buzz about “cleantech�? Many top-tier VCs, such as Kleiner Perkins' John Doerr, are placing big bets on environmentally friendly startups.
Recent figures show that 2005 VC investments in cleantech totaled more than $1.6 billion, an increase of $423 million, or 34.9% over 2004. This total puts cleantech in fifth place (behind biotechnology, software, medical and telecommunications) among VC-backed sectors in the United States.
What is cleantech anyway? The Cleantech Venture Network defines cleantech as something that allows consumers to make more valuable use of natural resources and to reduce ecological impacts of this use. Fields as diverse as manufacturing, energy, agriculture, logistics and information technology can have strong “cleantech� components.
Cleantech has yet to show up in many NC-based investors’ portfolios. But given North Carolina’s traditional industry strengths in manufacturing and agriculture, as well as the emerging clusters around informatics and logistics, cleantech could soon become a hot-button sector for investors in our region.