NY Times article on Venture Capital shift to energy efficiency:
Venture capital is starting to move away from its infatuation with alternative energy and returning to one of its traditional strengths: applying information technology to improve the efficiency of energy consumption.
Many investors say developing new forms of energy can consume hundreds of millions of dollars over many years before showing any return. Mr. Grosser’s firm, however, is looking for technologies that reduce demand for energy. “We need to move markets with small amounts of money,” he said.
About half of the dollars invested in clean technology last year went to alternative energy companies. In the first quarter of 2009, though, only one-third of venture dollars invested in clean tech went to these companies, the National Venture Capital Association said.