As Oil Prices Rise, So Does Interest in Energy Ventures

As the worldwide demand for energy increases, anddependence on fossil fuels." Soon after this $30 million
oil prices rise, many venture capital firms have begunfund was launched, it announced agreements with
to focus on the alternative energy sector.three leading venture capital firms: Nth Power, Draper
In fact, in June 2005, Pasadena, CA-based solarFisher Jurvetson and VantagePoint Venture Partners.
company, Energy Innovations, raised $16.5 million inWhile some of the venture capital firms are new to
venture capital led by Mohr Davidow Ventures. Atthe energy space, Nth Power is not. The firm began
around the same time, Nanosolar raised $20 millioninvesting in 1997 and has over $250 million under
(also led by Mohr Davidow Ventures), solar startupmanagement, with investments in energy intelligence,
HelioVolt, based in Austin, TX, secured an $8 millionpower reliability, distributed generation and related
investment from New Enterprise Associates, andservices. Other traditional energy VC firms include
Kleiner, Perkins, Caufield & Byers led a $16 millionEnerTech Capital, founded in 1996.
investment in Miasolé, a thin-film solar firm.In the foreseeable future, energy and clean energy
The current focus on energy investments, andinvestments seem promising. Not only must
particularly "clean energy", will hopefully be a truealternatives to high oil and gas prices be combated,
win-win; investors will make a good return on theirbut nearly 20 states have already set goals for the
investments and our environment will be positivelypercentage of energy sources that must come from
impacted. In fact, The California Clean Energy Fundrenewable sources. As a result, there are many,
(CalCEF) was recently launched to "make attractivemany buyers for energy products; the challenge is
investments, but also to provide an engine offor entrepreneurial companies to invent them.
economic growth while reducing California's