Linking funding for cleantech companies

The CleanTech Angels Network has been recently launched to link cleantech companies seeking investment with angel investors seeking investments in the sector.

The network is in response to both many cleantech innovators struggling to find backers and many angel investors unable to find good cleantech investments. The communications provided by the network will solve this information constraint.

The network is the initiative of Australian CleanTech, a research and advisory firm that works for cleantech companies, investors and governments to deliver both an understanding of and growth in the sector.

Cleantech companies are ones that produce products and/or services that have ‘economic and environmental benefits’. The subsectors of cleantech include renewable energy, water, waste and recycling, construction materials, energy efficiency, carbon trading and environmental services.

John O’Brien, Managing Director of Australian CleanTech, said, “We are approached by many emerging cleantech companies that require between $100,000 and $300,000 to bring their ideas to market. Many of these are very promising concepts and ones that would also benefit from the expertise of an experienced angel investor.

“It is very hard for many of these companies to even get past first base with any investors that they are able to easily access.”

There are 13 angel networks in Australia according to the Australian Association of Angel Investors. Historically, most of these have focused on IT or biotech projects. The CleanTech Angels Network allows companies to connect to an investor base across the country that has a specific interest in the sector.

The first companies/products to be seeking investors through the network include:

• An integrated solar system that provides a solution for buildings through the provision of hot water, power, heating and air conditioning.
• A building construction system that includes a patented super-insulated, low labour, construction methodology that reduces home energy by up to 80%.
• A DVD material solution that uses half of the raw materials of standard DVDs reducing both costs and the carbon footprint of production by 52%.
• Two wave energy technologies at different stages of development.
• An integrated food production system that profitably produces freshwater fish and organic vegetables.
• A solar module production facility that plans to produce panels especially adapted for the Australian market.
• A micro-algae biofuels project that plans to build decentralised rural industries.

“We have already facilitated discussions between one of these companies and a major potential investor,” O’Brien explains. “We are looking forward to delivering many success stories that help to commercialise clever clean technologies and help to move Australia towards a more sustainable future.”