Patrick Temple-West, Amelia Pollard, and George Hammond write in The Financial Times about the financing challenges that cleantech companies face.
- Several high-profile cleantech companies that had raised hundreds of millions in funding are now going bankrupt or shutting down, including Moxion Power, SunPower, Ambri, and Enviva.
- The challenges these companies are facing include high interest rates, delays in federal tax credit support, and difficulty raising new funding from private equity and infrastructure investors.
- Insufficient funding and onerous regulations to bridge the valley of death between the startup phase and commercial deployment is also impacting the cleantech sector disproportionally.
“Part of the challenge for cleantech companies is the number of rising sectors that are now competing for funding. ‘[Cleantech] companies have struggled to grow revenues at margins that would chart a path to profitability,’ said Bilal Zuberi, a general partner at Lux Capital. ‘Venture capitalists have seen a larger-than-expected portion of their [cash] reserves called into other sectors like AI, life sciences and defence tech.'”
Read the full article here.
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