Venture capital is a great way for a startup to receive the cash infusion needed to get a business up and running. The good news for those of us that love the environment is that venture capitalists have been quite supportive of the green building industry, to the tune of more than $4 billion since 2000.
Lux Research Inc, an independent research and advisory firm, tracked 332 venture investment transactions in 160 companies since the year 2000. The companies received a total of $4.06 billion with many companies going through successful acquisitions.
“Developers like Tridium, Encelium Technologies, and SAGE Electrochromics have advanced their technologies from seed-stage rounds to acquisitions by giants, and this early wave of acquisitions is poised to keep growing.” Source: Lux Research
Lux Research identified several key green building areas that are ripe for growth, stating that these are areas that investors should pursue. Sectors poised for growth include:
- Integrated design
- On-site generation
- Energy services
- Advanced building envelope
- Low-carbon cement and concrete
While on-site generation is one of the key target areas for growth, it has already received substantial funding from venture capitalists. The sector received $983 million of the $4.06 billion in green building venture capital tracked by Lux Research.