Entrepreneurs who are thinking about starting a company might consider venturing into the clean technology industry. With Americans’ increasing interest in going green, there is definitely a consumer base for these businesses. Moreover, it seems investors are increasingly eager to support clean tech startups.
Last month, the Cleantech Group announced that first quarter 2010 venture investments totaled more than $1.9 billion for clean technology ventures across several continents. This is a 29 percent increase from the previous quarter, and an 83 percent increase from the first quarter of 2009.
Officials for the investment firm say the higher funding comes in large part because of the innovation of skilled entrepreneurs.
“Key to the growth has been increasing interest in a broader range of clean tech themes, such as smart mobility and resource efficiency, which are now taking over from the historically dominant renewable energy sector,” said Sheeraz Haji, president of Cleantech Group.
Transportation was the leading sector, receiving $704 million in funds in the first quarter. Notably, some of the top recipients were American startups – including a California-based electric vehicle infrastructure company that secured $350 million in funds.
Eco-conscious entrepreneurs might take this news as evidence that the time is right for them to seriously consider business incorporation. In addition to the favorable investor market, a report from Burst Media Research indicates consumers will pay premium prices for green products and services.