VCs get rash of green funds

Greenbang wonders if all VCs are the same star sign. If they are, this month’s forecast might read something like this:

“You will see vast amounts of cash travel through your fingers and if you haven’t already, you’ll consider opening up a green fund shortly. You’ll find your squash game a bit disappointing.”

Having a green fund on your books is the VC equivalent of car makers making a hybrid vehicle: everyone’s at it. The Times sums up all the fuss nicely:

Within the past couple of months F&C introduced its Global Climate Opportunities fund and HSBC unveiled its Climate Change Fund. Virgin Money is starting a fund this month and Allianz’s Global EcoTrends Fund will be up and running next month. Schroders launched a climate change fund in September and Jupiter’s Ecology fund is more than 20 years old […]

So what will the new funds focus on? The F&C fund concentrates on mitigation of and adaptation to climate change. It will invest in areas such as alternative energy, energy efficiency and technology to reduce emissions. Terry Coles, co-manager of the fund, says: “We have a stake in Sun-Tech Power Holdings, a Chinese manufacturer of solar cells. It combines two of the key things we are looking for: competitive costs and a position in a fast-growing industry. It can build huge single solar panels which can be made into roofs.

Interestingly, the article goes on to say that garden centres are looking tasty as acquisitions as big retailers think they could be the way to flog green consumer tech.