The clean technology venture capital firm, The Westly Group, has closed the first $50 million investment toward a new $175 million fund and sees the initial public offering (IPO) market firming up.
The California group, founded in 2007, hit it big when three of three of the firms in its portfoliowent public in 2010: electric automakerTesla MotorsAmyris; and renewable energy manufacturer CREG(China Recycling Energy Corporation). ; synthetic biology company
The group plans to continue investments in a range of technologies focused on clean energy and energy efficiency, with special focus on green building technology. It’s not averse to looking abroad, especially in China. And it also expects to put about 20 percent of the fund into Internet companies.
This is not surprising, since, prior to establishing the eponymously named firm, Steve Westly worked for Netcom, WhoWhere?, and eBay ; and in 2008, after supporting Barack Obama’s successful presidential run, he was rumored to be considered for the U.S. Secretary of Energy cabinet post.
The market for selling startups to big companies or in stock offerings is improving, Westly said in an interview with Reuters, as is interest by investors who want to get into startups on the ground floor. "You are going to see a lot of cleantech IPOs here," he opined.
What’s more, "I think there is a good chance we have an M&A exit this year, maybe two," Westly said. "We have at least one company in the portfolio that we believe will be over $100 million [in revenue] next year— and that's Amonix [a manufacturer of commercial solar power systems]. Depending on market conditions they should be able to go public.”
His group aims to invest in second and third rounds of fundraising and offers to help with navigating the world of government—which can be a major consumer of clean technology, as well as a backer with loans and grants.
The National Venture Capital Association, the Arlington, Virginia-based industry trade organization, characterized a 26 percent rise to $1.0 billion in clean technology VC investments, in the first quarter versus the fourth as evidence of a "reasonable, rational" pace in the VC industry.
"Two things I know for sure : [It's]clearly tougher to raise money now than it was … three or five or 10 or 15 years ago, but I can just feel out there, it is getting easier every month because the economy is coming back, people are feeling more optimistic," Westly said.
Visit the group’s site to see its current investment portfolio.
Cheryl Kaften is an accomplished communicator who has written for consumer and corporate audiences. She has worked extensively for MasterCard (News - Alert) Worldwide, Philip Morris USA (Altria), and KPMG, and has consulted for Estee Lauder and the Philadelphia Inquirer Newspapers. To read more of her articles, please visit her columnist page.Edited by
Jamie Epstein
