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

New age venture financing in renewable energy:


Energy produced by wind (and hydro) power will double by 2030, according to The Economist. This comprises most of the growth in renewable sources' prominence in the planet's electricity utilization. Wind is the cheapest renewable energy. Its supply is unlimited. Technological costs are decreasing, though potential turbine locales are finite. Electricity generated varies depending on ranges of wind speeds. Taking this sector's climate into consideration, following are the basics for new wind ventures seeking financing.

Current strategy to follow

The basics

Due to its obvious future prominence, wind as an industry is perceived as less risky to investors. Because wind-related assets of sound, value-adding performance are generally forecasted to rise in value, this makes bulk more important. Start-ups in the field thus arenít likely to receive much attention from angel investors or venture capitalists without some proven, groundbreaking technology (i.e., doing to the turbine what the Internet did to books).

Starting with a previously-financed smaller operation is ideal before seeking external capital. Thereís lots of ideal land yet to be tapped for turbine purposes, and a combination of acquiring these viable regions and even smaller firmsí assets will quickly put you into good graces with renewable-oriented mutual fund managers and boutique investment banking firms.

If such behavior persists, itís likely that venture capitalists will instead be calling you for a stake in your firm.

Up-to-date strategies in:

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  • Other tips and tricks

    That wind technology is more established than in numerous other renewable sectors doesn't mean there isn't room for creativity or improvement. This field is, frankly, dull. Although market share's critical here, don't limit diversification to real estate. Concentrate on acquiring and producing quality assets, but also crafting a new and creative spin in the field. As financier Guy Kawasaki says of venture capital fundraising: "It's simply a game of 'Hot or Not.'" Since most small wind companies are privately owned, they may not come across as many related ventures as you may have thought.

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