| Now we have seen 2009 was truly a beginning of | | | | in Boston are providing grants for both graduates and |
| the "Green Investment" era with many more | | | | MBA students in developing greentech applications; |
| predicting 2010 is going to be a stellar year for Green | | | | this is a perfect ground for entrepreneurs, the |
| investments. We have gathered information | | | | network in Boston for green investments is also very |
| throughout 2009 by following deal-flows announced; | | | | strong and well organized. |
| and determined where the best cities are for 2010 | | | | Detroit |
| for green investments. | | | | We put Detroit down which can be a surprise to |
| Not surprisingly, USA still dominates the list, and we | | | | many, in fact, we were thinking about Seattle, |
| believe the trend will continue as USA remains the | | | | Charlotte, Chicago as alternatives. Detroit offers |
| world's biggest venture capital & private equity | | | | something more unique, it is an automotive city, it |
| market, and frankly speaking, it is quite difficult to | | | | has been hurt by recession more than anyone else. |
| see how this will change over the next decade or | | | | Yet, it is because of the recession; we have found |
| two. While China is rising, its investments are mainly | | | | Detroit entrepreneurs and investment institutions are |
| driven by Government funding, the venture capitals | | | | devoting more efforts to green technologies than |
| are starting to become influential in China, with most | | | | others; and wish to use this as an opportunity to |
| of them actually set up by their US or European | | | | revive Detroit into world's Green Car City. |
| counterparts. | | | | Although the car industry is not active in investments |
| Therefore, amongst the major Green venture capital | | | | anymore; they do have technology capabilities to |
| cities, they are still represented by the US cities, but | | | | support new developments, many are related to |
| we will cover other cities in future articles. | | | | automobile industries; but these can be transferred |
| New York City | | | | to other transportation industries as well; more fuel |
| Undoubtedly still the best place to raise your capital, | | | | efficient engines, better grid systems, improvements |
| although many may wonder if New York City is a | | | | in gas stations; solar cars, better batteries; it has |
| "green city" itself? The answer is yes, there are a lot | | | | been a great year for Detroit green inventors, and |
| of consistencies between Green jobs & Green | | | | this will continue to attract new investments. |
| investments. New York City has created perhaps | | | | Portland |
| more green jobs than any other cities in 2009; this | | | | We have also selected Portland to wrap up this first |
| was driven by the significant demand from internal | | | | article. Portland is in an interesting situation. Some |
| usage, such as the world's largest transportation | | | | $70m of venture capital investments were made into |
| system, strong demand for smart-grid and also high | | | | cleantech sectors of Portland in 2009; it is also one of |
| concentration of Green finance professionals. New | | | | the "lowest-carbon-emission cities" in North America. |
| York City is the first choice when comes to Green | | | | You can see that from the number of people choose |
| investments, just like other venture capital | | | | to bike or walk to work each day in Portland. It also |
| investments! | | | | has initiatives to encourage electric cars such as free |
| San Francisco | | | | parking, and very complete public transportation |
| San Francisco has always been a "green city", and | | | | system; which use alternative energy. |
| with its population highly proactive in adopting green | | | | To sum up, this makes Portland a place with strong |
| lifestyle, as we know, it also has very large LOHA | | | | support for green economy, green alternative |
| population. Their attitude towards green lifestyle is a | | | | transportations and green products. It is also one of |
| fundamental factor behind its population's support in | | | | the cities that has created the most green jobs in |
| green economies. | | | | 2009. The combination of these factors have made |
| Additionally, supported by the existing IT & | | | | Portland a nice place to find green investments; both |
| technology investment capability, the venture capital | | | | from institutions and also from individual investors. |
| groups have been learning how they can utilize their | | | | Does the location really make a difference? The |
| skills in expanding into the green tech sectors. | | | | whole green investment era had just started about 2 |
| Comparing to other Californian cities, which we have | | | | or 3 years ago, and more changes will happen. But if |
| also compared Los Angeles & San Diego | | | | you use both technology & natural resources |
| investment environment; San Francisco remains as | | | | investment history as an example, you could argue |
| the hot favourite destination for green investments. | | | | that; by being in "Where money is" does help, |
| Boston | | | | California based tech companies tend to find |
| Back to the east coast again; there is also very | | | | investors more easily, because they are in the "hub"; |
| significant increase of green investments coming | | | | and mining companies always want to concentrate in |
| from Boston. Interestingly, our research shows this is | | | | key mining funding hubs like Texas; or Calgary in |
| a different evolution compared to San Francisco. | | | | Canada, or Utah. |
| The foundation of the transformation in San | | | | A big reason for that is to see how much support |
| Francisco evolved from technology / IT venture | | | | the local investors have in your company / industry. |
| capital investments; in Boston, this was evolved from | | | | If you conduct an technology IPO, you can see |
| their long-time involvements in life-science | | | | Californian investors have much higher dominance in |
| biotechnology investments. | | | | terms of shareholders, even higher than New York in |
| Interestingly, when you make the comparison, we | | | | many instances; and we did an IPO in the past for a |
| have seen Boston has participated in more | | | | healthcare sector; we could also see significantly |
| non-technology investments such as investing in | | | | higher proportion of investors from major health |
| environmental science, chemical related environmental | | | | capital centers like Boston and also from Cleveland. |
| improvement applications or renewable energy | | | | Every sector is different and every opportunity is |
| opportunities instead of technologies. | | | | different as well; but do conduct some research if |
| Boston also has a strategic advantage that with its | | | | you are looking to establish a new office or |
| universities able to support & commercialize new | | | | appointing a new advisor to find investors; this can |
| developments & technologies; many universities | | | | make a big impact sometimes. |