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Earlier this week solar startup GreenVolts told me that it had lost a major investment from power company ABB (s ABB) and as a result laid off more than 60 of its 80 employees, and is now looking for a buyer. Greentech Media first reported the troubles from the startup.
You’re probably wondering, so what happened? ABB was previously the lead investor in GreenVolts’ latest round and had committed $20 million of the $35 million round. Andrew Tang, ABB’s Managing Director of its venture arm, ABB Technology Ventures, gave me some more context for why ABB decided not to continue to fund the company:
Our decision to not further invest in GV has nothing to do with its team or technology, in fact both of which are recognized as world class. This decision reflects the uncertainty in the PV market, and the lack of transparency on when it will stabilize. I hope this decision demonstrates that we are a disciplined investor, who won’t sell winners too early, nor throw good money after bad. We are optimistic about the industrial and cleantech space, and ABB Technology Ventures will continue to seek and make financially sound investments in innovative start-up companies which have technologies or business model of strategic interest to ABB. In fact, we currently have an active global pipeline and evaluate more than 1,000 deals a year.
So that’s the story from ABB.