Venture capital to drop, but clean tech OK -- survey

 From: Reuters - December 17, 2008 - 

Read Full Article: World Business Council for Sustainable Development (WBCSD)

Venture capitalists, who have seeded new ideas for everything from Google to smart electric meters, expect increased investment in clean technology despite the recession, a survey showed Wednesday. A survey by the National Venture Capital Association found that 400 venture capitalists expect investment to drop in nearly every other area.

While there may be stable investment in life sciences and biotechnology, those surveyed believe semiconductors, media and entertainment and wireless communications will all suffer declines. The loss of capital will cut across regions, hitting Israel, India and China and "the outlook is particularly grim in Europe," the survey said. Venture firms will spend $29 billion to $30 billion by the year's end. A majority of those surveyed see that dropping 10 percent or more in 2009, except for clean technology.

"Despite lower investment predictions across all industry sectors, clean technology is viewed ... as potentially growing in 2009," the survey found. One reason for optimism about clean tech is government involvement. During his campaign, President-elect Barack Obama pledged to spend $150 billion over the next decade to develop clean tech, creating 5 million jobs in the industry.