The Role of Venture Capital in Green Tech Innovation
Everyone is calling for a revolution in the ways we produce and consume energy and for the past year policy makers have been investing billions in this pursuit. But, if their investment models are wrong for the green tech sector, their actions will cause more harm than good. For the Obama Administration and the U.S. Department of Energy (DOE), venture capital financing has become one of the leading models.
Venture capitalists work closely with start-ups to bring new technologies to market. Google, Genentech, Intel, Cisco and others were funded this way, so it seems natural for the federal government to follow venture capital’s lead in identifying and investing in new green tech ventures on hopes these new ventures will have similar impacts.