Should Cleantech companies consider Alternative Finance?
In this blog article we focus on Cleantech, a sector close to our heart, and whether Alternative Finance can fuel its growth.
Trump is the US president elect. He does not believe in climate change. His government is unlikely to help the Cleantech sector. However, a fundamental change is taking place the Trump administration will not be able to stop. People all over the world are starting to worry about the environment, taking concrete steps to deal with climate change.
Many Americans are increasingly worried too. They are among the most proactive on the climate change front and have the means to make an impact. They also make their investment decisions based on their own beliefs, not who is in Washington. This is true for Europeans, Asians and others too.
Angels, VCs, large corporations, major governments around the planet will not stop their support for Cleantech. After the progress made by solar and battery technology and companies like Tesla, we believe investment and technological progress are about to accelerate.
In addition, Alternative Finance such as Green Bonds, Crowdfunding and other new funding options will help Cleantech reach take off speed. The right finance option depends on project type. If you are after VCs, make sure their investment horizon can be aligned to realistic (interim) milestones.
Cheap oil – no business leader or investor already committed to Cleantech will pay much attention to the price of oil and other fossil fuels in the future. These dirty fuels will become irrelevant well before the planet runs out of them. Trump will make the life of oil companies easier, however their best days are over. Unless they seriously commit to renewables.
In conclusion, even if the US government will not help, Cleantech companies will be able to count on many others, including the Alternative Finance folks!
A caveat: Cleantech is best suited for investors with longer time horizons.