Are you looking to raise investment capital for your current and upcoming cleantech or renewable energy projects? Here are 4 strategies to consider.
Strategy 1: Debt Financing
Yes, you can consider debt financing for your projects; many CleanTech innovators thought this is only for equity investments; but increasing number of financiers including banks will consider provide debt financing for CleanTech / Renewable energy projects. For infrastructure projects, debt financing is already a very popular option; especially for those relating to wind energy or biomass energy. This is a strategy if you do not wish to give away shareholding of your company.
Strategy 2: Raise Capital from Asian Investors
This includes both individual and institutions. Our recent management survey with around 50 Asian venture capital managers have found that CleanTech is certainly an area of interest from them, but for some fund managers; many such deals do not exist in Asia; as many economies remain as manufacturing based economies; and also general lack of professionals able to conduct due diligence on CleanTech related deals.
This means, they are also opening their investment mandate to western opportunities; especially for those that they can see with great potential in Asia.
Strategy 3: Look for Government Supports Worldwide
One of our projects involves with water technologies; and this technology has specific application for several countries in the Middle East, the company had raised $20m from the Middle East Government after several rounds of discussions.
It is important to consider government as investors ‘” either through their grants or through purpose-set up investment vehicles into green economy. You should always look for international opportunities; a good example is Temasek; which is the Singaporean Government investment vehicle; it has invested in a wide range of opportunities both within Singapore and outside Singapore. Other government sponsored funds include a number of US State based funds, Canadian pension fund, Middle East, Korea and Chinese government sponsored industry funds.
Strategy 4: Strategic Investors
Strategic investors ‘” this include 1) Industrial investors that see your products / services as good fit to their business. A good example will be Schneider Electric or Chevron Energy Technology.
A second example is to find strategic investor that will be likely to support and expand your product. For example, a Chinese car-battery company had bought into a Californian recreation vehicle company; they bought the stake to supply its batteries to the vehicles; as well as setting up a new line to sell recreation vehicles in China.
Other good examples include energy efficient technologies from US that has attracted investments from Taiwanese and Chinese PC manufacturers; also energy saving battery technologies that has raised capital from strategic industrial investors.
Strategic investors invest in your projects for long term business reasons; and you will be less likely to be pressured to sell your business or go to IPO as in the case of venture capital.