New age venture financing in renewable energy: Tidal Renewable energy venture financing home

New age venture financing in renewable energy:


Tidal energy generates no waste. Its use of the abundant resource of water to generate power is rather reliable, as tides are easy to anticipate and measure. Negatives include high costs of construction, high generation of power at times often lacking demand, limited acceptable locales, and potential harm toward marine life. Taking this sector's climate into consideration, following are the basics for new tidal (wave) ventures seeking financing.

Current strategy to follow

The basics

Tidal energy technology’s relative expensiveness and difficulty of constructing into a large-scale operation present unique methods for seed-capital seekers in the field. If your firm has a patented technology to demonstrate, it can often be done on a smaller scale first (with sufficient legal permits). An example is getting the permission of the state government and municipal authorities to establish a local project in a river with enough of a current to show your creation's capabilities.

Highlight the uniqueness and proven effectiveness of your technology to investors, as it will require lots of funding to come into fruition on a large-scale locale like the deep ocean. Further, since demand is often not ideally correlated with tidal’s prime production, pursue markets in which the population more normally shows the contrary. Stress and cite the discovery in pitches.

If you’ve obtained the rights to use a physically and legally feasible area in the ocean for such technology, your firm can utilize the geographic barrier of entry in optimal favor. In this situation, technology should take a backseat to the market value potential of utilizing “your spot” while pitching. You’ll have more freedom (and likely attention from angel investors and venture capitalists instead of merely institutions) to acquire capital for developing technology further before a launch.

Up-to-date strategies in:

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  • Other tips and tricks

    Despite the fact that tidal energy has been experimented with for more than 30 years, technology is still in relatively infantile stages. This factor and the slumping market make the sector particularly vulnerable to slowed growth. With little chances of tidal ever being the premiere renewable energy source, emphasize proving the uniqueness and effectiveness of your intellectual property for significant outside funding. With attractive locale permits as noted above, sell your market as you're promoting your firm and go right after larger hedge funds and individual investors.

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  • Copyright Alex Stehr, 2008. — ContactHome