VCs not worried on greentech bubble

The financial market maybe in shambles but the Green Technology sector should cheer up with this new report from KPMG (a US audit, tax and advisory firm) stating that the venture capital community is expected to invest more in green next year.

In KPMG’s poll of 301 venture capitalists (VCs), corporate executives, entrepreneurs and bankers, 91% said they expect investments to rise next year, with 50% even stating an increase of 20% or more compared to the 2008 levels, while 34% expect investment levels to increase 10%-19%.

Around 76% says the investment level next year will be the same as this year. The type of investments will also be more diversified with 15% expecting more VC funding in energy storage (fuel cells, batteries…), 14% each in clean coal and wind, 11% in alternative fuels, and 10% in solar.

The report also noted that among clean air energy source, the most dominant in the next 20 years will be solar (39%), nuclear (27%), and wind (18%). I truly did not expect nuclear in the list but I guess VCs know more about what’s happening in that area.

US geography-wise, 60% expect greentech investments to center in the West, followed by Southwest region (14%), Midwest (13%), Northwest (9%) and Southeast (4%). Outside the US and excluding China and India, 28% of VCs polled expect more investment opportunities in Brazil and 27% in Israel. Russia (11%) and South Korea (10%) were the only countries with double-digit response rates.

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