Study: VCs cautious about "cleantech"

Significantly different business models and regulatory involvement make investing in clean technology companies a challenge for venture capitalists, according to a new study.

The study, titled "Cleantech and Venture Capital: A Whirlwind Romance or Just Dating?", is from the Topline Strategy Group, a Newton consulting and market research firm.

The study defines "cleantech" as any technology that enhances the use of natural resources.

Investment in cleantech is still small, according to Topline, which noted that of the nearly $25 billion in US venture capital transactions made in the 12-month period that ended in March, $1.36 billion was made in cleantech ventures.

"Mainstream venture capital investors are interested, but they are moving cautiously as they begin to understand the unique needs of the space." Topline general partner Jonathan Klein said in a statement.
(By Chris Reidy, Globe staff)