As Cleantech Funding Wanes, Garage Tech Ventures Shifts Strategy

As the number of venture capital sources for clean technology shrinks, Garage Technology is seeking to collaborate with large global technology companies to fund early-stage cleantech firms, signaling a shift in the way venture firms do business, says Bloomberg. The new fund will deviate from the traditional fund structure, with Garage becoming a co-investor and being paid a management fee.

Corporations are better suited to seed startups than institutional investors because they are able to pursue early-stage ventures for strategic reasons, rather than purely financial ones.  There’s about $2 trillion in cash that’s “stranded” on corporate balance sheets and could be steered toward funding startups, estimates Garage Technology’s Managing Director Bill Reichert. The corporate funding will be off-balance-sheet, with Garage becoming an extension of the corporation’s venture group and their corporate R&D group.

Through this strategy, the firm is seeking to pursue as much as $40 million in annual investment to commercialize technologies in renewable energy, storage and industrial efficiency.

To read the full Bloomberg article, click here


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