US Energy Venture Capital Cup Is 11% Full

paparazzi%20robot.jpgArstechnica is reporting that :- "Two groups that track and promote environmentally-friendly investments, cleantech and E2, have released a report on the state of the market in what they term cleantech venture capital. The report suggests that a combination of high energy prices, governmental encouragement, and public awareness of climate change have combined to cause this sector to explode. Investors who were surveyed for the report, however, fear that inconsistent government policies may leave the sector at risk of a future downturn." Here's the money quote:- "This growth now means that cleantech has surpassed the medical device, telecommunications, and semiconductor sectors and accounts for 11 percent of the total US venture capital market—only biotech and software remain ahead of it. In contrast, the entire European market only directed $680 million to cleantech, a figure that represents a decline compared to 2005." That's confounding to say the least. The European economy has long been far less carbon intensive than US or Canadian economies. Perhaps the difference can be explained by the effect of greenwashing. "Clean Coal," for example, is highly capital intensive to develop and offers no relative reduction in carbon intensity: including that or similar technologies in the "clean tech" category would skew results. Inquiring minds want to know: where's that remaining 89% of US venture capital likely to go? Paparazzi robots that can follow blond celebrities to jail would be a really hot startup idea. "What climate catastrophe," sez the IPO fund manager chasing that one down. Via:: Arstechnica Image credit:: Paparazzi Robot [TreeHugger's term for this little cutie.]- CBS NU

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