Abstract

SOLAR PIONEERS invited the neighbors over to show off their rooftop panels and explain how they convert sunlight to electricity. Thanks to venture capital investors, those who want to convert sunlight more directly into money will soon have many new options. Venture capitalists predict that green start-ups will constitute their highest growth sector in 2008, and some of those companies will become part of tomorrow’s stock portfolios. Already in some stock owners’ portfolios are SunPower and First Solar, two of several solar companies that issued initial public offerings (IPOs) in 2005 and 2006. These successful IPOs have helped turn on a sudden flow of money into what is being called the “cleantech” sector. In 2007, U.S. cleantech venture capital investments increased 46%, to almost $2.2 billion, compared with 2006, and the National Venture Capital Association (NVCA) predicts another banner year in 2008. Though solar and other energy technology companies have received the most investment, cleantech ...

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