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Understanding public venture capital in the cleantech sector

Ramse Andersen, Tomas LU (2013) In IIIEE Master thesis IMEN41 20132
The International Institute for Industrial Environmental Economics
Abstract
The world is currently facing a number of large environmental challenges, and cleantech is pointed at to be one of the best potential answers. However, in the winds of a financial crisis, shifting capital markets and rapidly growing information technology sector, the cleantech
segment currently finds itself in a disadvantaged situation where the direly needed early-stage capital is not finding its way to the cleantech start-up companies. Arising from the situation is a funding gap which governments increasingly try to react to by getting involved in venture
capital funding. This study is is a response to a defined knowledge gap on how these public VC instruments should be set up in order to spur self-sustained investments in the early... (More)
The world is currently facing a number of large environmental challenges, and cleantech is pointed at to be one of the best potential answers. However, in the winds of a financial crisis, shifting capital markets and rapidly growing information technology sector, the cleantech
segment currently finds itself in a disadvantaged situation where the direly needed early-stage capital is not finding its way to the cleantech start-up companies. Arising from the situation is a funding gap which governments increasingly try to react to by getting involved in venture
capital funding. This study is is a response to a defined knowledge gap on how these public VC instruments should be set up in order to spur self-sustained investments in the early stage cleantech venture market. The author used the OECD guidelines for public venture capital as a framework and looked at four different international cases of public VC involvement and conducted a number of interviews with experts and stakeholders. The
findings from the open ended interviews were coded and categorized into relevant topics. In the analysis the author combined the cases and the interview findings according to the OECD guideline criteria in order to look for best practices and obstacles in public VC instrument design. The study concludes that it is difficult to generalize public VC instrument design as there are many contextual factors involved. However, the study also concludes that the shift in the provision of private VC affects how these instruments should be designed. Further the study concludes that the stage of the cleantech venture chain to be targeted also affects public design incentives. Finally, the study implies that special attention should be
given to additionality considerations and that there is a rather untapped scource of „knowledgeable private VC‟ seeking more than just direct investment profits. (Less)
Please use this url to cite or link to this publication:
author
Ramse Andersen, Tomas LU
supervisor
organization
alternative title
Public venture capital and the cleantech sector
course
IMEN41 20132
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Cleantech, Public venture capital, Policy instrument design
publication/series
IIIEE Master thesis
report number
11
ISSN
1401-9191
language
English
id
4114171
date added to LUP
2013-10-23 14:44:55
date last changed
2013-10-23 14:44:55
@misc{4114171,
  abstract     = {The world is currently facing a number of large environmental challenges, and cleantech is pointed at to be one of the best potential answers. However, in the winds of a financial crisis, shifting capital markets and rapidly growing information technology sector, the cleantech
segment currently finds itself in a disadvantaged situation where the direly needed early-stage capital is not finding its way to the cleantech start-up companies. Arising from the situation is a funding gap which governments increasingly try to react to by getting involved in venture
capital funding. This study is is a response to a defined knowledge gap on how these public VC instruments should be set up in order to spur self-sustained investments in the early stage cleantech venture market. The author used the OECD guidelines for public venture capital as a framework and looked at four different international cases of public VC involvement and conducted a number of interviews with experts and stakeholders. The
findings from the open ended interviews were coded and categorized into relevant topics. In the analysis the author combined the cases and the interview findings according to the OECD guideline criteria in order to look for best practices and obstacles in public VC instrument design. The study concludes that it is difficult to generalize public VC instrument design as there are many contextual factors involved. However, the study also concludes that the shift in the provision of private VC affects how these instruments should be designed. Further the study concludes that the stage of the cleantech venture chain to be targeted also affects public design incentives. Finally, the study implies that special attention should be
given to additionality considerations and that there is a rather untapped scource of „knowledgeable private VC‟ seeking more than just direct investment profits.},
  author       = {Ramse Andersen, Tomas},
  issn         = {1401-9191},
  keyword      = {Cleantech,Public venture capital,Policy instrument design},
  language     = {eng},
  note         = {Student Paper},
  series       = {IIIEE Master thesis},
  title        = {Understanding public venture capital in the cleantech sector},
  year         = {2013},
}