Comments on: For investors sticking with “cleantech,” it could be the best of times (just don’t call it cleantech)

By: Kirk Brand Coburn

Kirk Brand Coburn — Wed, 20 Feb 2013 23:24:21 +0000

In regards to Peter Herbert’s comments, I agree with the fact that there is a silver lining to the situation. It’s survival of the fittest and a weeding out process. In reference to Burton Malkiel’s modern classic on investing, A Random Walk down Wallstreet, cleantech companies and investors that were along for the ride to be investing based on “castle in the air” theories are now gone, and cleantech companies here are rational, committed and have viable ideas and products based on research. Investors are fewer and far between, but they are investing based on firm foundations. With every speculative period marked by mob mentality and inflated IPOs, the market’s efficiency proves itself and inevitably, it did.

The surviving companies continuing to innovate and persist are hopefully here for the long haul.

This is also a time for larger corporations to invest in cleantech, which they have continued doing so. Companies such as Dow, Johnson Controls, Schneider Electric, Eaton, Honeywell, Hitachi, GE Energy and many more are investing.

As we know, solar deals have gone down significantly, but faith remains especially for investors in sectors of transportation and green chemistry companies. And in agreement with Peter Herbert, venture is a cyclical business and I’m sure cleantech will once again gain respect from the masses and media and will be far from a toxic name in due time.

By: Allan

Allan — Tue, 19 Feb 2013 00:53:17 +0000

The stocks are down for a reason.

By: Felix Hoenikker

Felix Hoenikker — Mon, 18 Feb 2013 19:18:46 +0000

Of course its cyclical, people will continue to innovate and the money will come eventually. I was in cleantech VC from 2008 to 2012 and try not be a cynic but sitting from the analyst desk doing all the analysis and research….I learned there were actually very few people with the technical understanding and business acumen to responsibly make investments. For example had anyone done their research on the solar industry in 2008 they would have realized one glaring fact….China was subsidizing to push down panel cost and there was no indication they would stop. Same goes for many of the CIGS and CdTe starups funded after 2008. Similarly in LEDs, Why would you build a fab in the US if China/Taiwan are subsidizing CVDs, did we not learn anything from the fabless revolution led by TI? Same goes for batteries, at the time A123 was going bankrupt you could literally buy the same LFP chemistry batteries in China for 1/4 the cost A123 manufactured at. This is one aspect of due diligence, but a simple concept to research and understand and inexcusably overlooked by many “experts.” We need VCs less interested in playing the role of a VC and more interested in helping to creating value. Is Calera bigger than GE yet?