This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Venture Capitalist: Early Stage 'Cleantech' Attractive

Written by Ucilia Wang

The venture-capital world will likely see a sharp decline in investment dollars and smaller deals in the fourth quarter, as investors and startups figure out how to weather the sinking economy.

Boston-based VC Rob Day made that prediction on his Cleantech Investing blog last Friday, at the end of a week that was marked by sharp declines of the Dow Jones Industrial Average and solar stocks. The Dow had sunk for eight straight days by Friday, capping the worst week ever in its 112-year history.

First Solar's (FSLR - Get Report) stock lost 26 percent of its value last week. Shares of Suntech Power Holdings (STP) lost 28 percent of their value, while Evergreen Solar's (ESLR) lost 25 percent.

With no visible end to the financial market crisis, VCs will likely prefer early stage greentech companies, which won't have to worry about exits through acquisitions or initial public offerings any time soon, Day wrote.

"So I think (guess?) Q4 will see a moderate decline in the number of cleantech deals overall, a bit of a shift into earlier-stage investing, and a big decline in aggregate dollar amounts," he wrote. "And early stage will be the first to pick back up going forward. Early stage cleantech venture capital remains a very attractive investment area."

Day also predicted "big-name cleantech startups [will] implode" during the downturn. Companies that have raised a lot of money to support fast expansion plans -- and that expected to raise more large sums in the near future -- will suffer, he said. (Don't miss " Balance Sheets Matter Now More Than Ever")

On that note, here is some recent funding news.

Public Companies

  • Ascent Solar (ASTI) is getting $15 million from Norsk Hydro [Over-the-counter ticker: NHYDY], an aluminum company whose stake in Ascent Solar will rise to 35 percent. Littleton, Colo.-based Ascent Solar develops copper-indium-gallium-diselenide solar cells using plastic substrates. Last month, the company said it will begin supplying Spanish roofing firm Texsa with thin films that will be integrated into Texsa's products.
  • 1 of 2

    Check Out Our Best Services for Investors

    Action Alerts PLUS

    Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    Quant Ratings

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    Stocks Under $10

    David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    14-Days Free
    Only $9.95
    14-Days Free
    Dividend Stock Advisor

    David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Updates with exact steps to take - BUY, HOLD, SELL
    Trifecta Stocks

    Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

    Product Features:
    • Model Portfolio
    • Intra Day Trade alerts
    • Access to Quant Ratings
    Real Money

    More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

    Product Features:
    • Access to Jim Cramer's daily blog
    • Intraday commentary and news
    • Real-time trading forums
    Only $49.95
    14-Days Free
    14-Days Free
    STP $0.53 0.00%
    ASTI $0.05 -3.77%
    ALTI $0.31 24.00%
    FSLR $51.78 -2.02%
    JCI $40.60 -0.64%


    Chart of I:DJI
    DOW 17,651.26 -99.65 -0.56%
    S&P 500 2,051.12 -12.25 -0.59%
    NASDAQ 4,725.6390 -37.5850 -0.79%

    Free Reports

    Top Rated Stocks Top Rated Funds Top Rated ETFs