Green Energy Must Dodge ‘Valley of Death’: Holzschuh

March 22, 2012 by  
Filed under Green Energy News

Renewable energy startups may
struggle to line up financing to move their technology from the
laboratory to the market because investors are seeking better
short-term returns, said Morgan Stanley (MS)’s Jeffrey Holzschuh
said.

The time and effort required to commercialize a promising
concept may exceed some investors’ expectations, Vice Chairman
Holzschuh said today in a radio interview on “The Hays
Advantage” with Kathleen Hays and Vonnie Quinn.

“Once the technology is developed, getting it commercial
you have to get it through this valley of death,” the period
when a company must raise more capital to increase production to
commercial scale, he said. “Many people’s threshold for a
return in the near term doesn’t match up with what’s needed in
the long run.”

The majority of the capital to commercialize renewable
energy technologies will come from governments and venture
capital companies, which don’t have shareholders who are
expecting quick returns on investments, he said.

“The investment community is going to continue to seek out
investments in this space, and some are arguing that now is the
time with prices going down,” Holzschuh said.

To contact the reporters on this story:
Justin Doom in New York at
jdoom1@bloomberg.net;
Kathleen Hays in New York at
khays4@bloomberg.net

To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net

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