Are venture capitalists a good way to see how well green technology is doing?



  1. 0 Votes

    Although venture capitalists behaviors are a good source of looking at where the market is heading based on their investments, they are by no means a barometer for feeling out how the green technology sector is performing. Another source to look to would be the nasdaq which specializes in technology, hence it may provide a more accurate depiction of investor faith in green technology producing companies.

  2. 0 Votes

    I would say that examining where venture capital is being invested can be an indicator of how well certain industries/sectors/technologies are predicted to do, but only to a certain extent.  Venture capital refers to financial capital provided to startup, high-risk, high-potential endeavors.  The risk inherent in venture capital, therefore, undermines the certainty with which you can predict how well something is going to do.  If, over time, profits and returns are evident, then its likely safe to assume that the venture paid off (high-potential aspect of VC). 

    Another point is that, even if venture capitalists aren’t investing in green technology, it doesn’t mean that the technology won’t do well.  If it’s receiving investment and a lot of public attention, chances are it is a safe investment, and will be unlikely to yield a high return.  Although it will do well, it might not be something VCs seek to invest in. 

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