Information Systems for Environmental Sustainability

IT, Resource Productivity, Environmental Preservation, and the Fourth Industrial Revolution

VC Shift from Alternative Energy to Energy Efficiency

1 Comment

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.

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Author: nigelpm

Associate Professor of Information Systems, Stephen M. Ross School of Business, University of Michigan - Helping organizations to navigate digital transformation.

One thought on “VC Shift from Alternative Energy to Energy Efficiency

  1. It is okay to follow the traditional footsteps and play it safe when it comes to returning to investing in energy efficiency at a time when the gas prices are low and the economy is struggling to shine.

    However when the gas prices touch the sky again, the cry for alternative fuels will again surge. Because that seems to be the best thing to do at that moment.

    Therefore, there is a need to not just focus on short term solutions but keep in sight the need for an overhaul of energy solutions and need to bring sustainability on the main front.

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