Green energy insight from a CNet interview with tech guru Bill Joy

Russ Steele

In a article about Bill Joy and the pursuit of the next big break through in green technology, the author Martin LaMonica provides some interesting insight into the current state of green technology venture capital investing.  Well interesting to me, and perhaps to those on the left who claimed green technology was going to save the California economy.

Because it is such a high-profile company, Kleiner Perkins' entry into green tech six years ago was seen as a validation of the entire investment segment. Many other venture capital companies, which traditionally worked in IT and life sciences, started making green-tech investments, leading to billions of dollars in venture capital in the segment.

But some investors say that enthusiasm among venture capitalists and private equity companies for green tech is cooling. In part, venture investors are seeking out mega deals in the Internet sector, in the hopes of replicating the rapid growth and high valuations of Facebook or Groupon.

Private investors and entrepreneurs have also come to better understand the difficulties of commercializing energy- and water-related technologies compared to IT. Often, energy technologies take lots of money and time to develop and energy regulations in the U.S. are inconsistent.

None of Kleiner Perkins' green-tech investments has been a financial home run yet and some of its bets have not paid off. A Boston area solar company where Joy was a seed investor called Solasta folded when it was unable to raise more money.

So, we find out that green tech is a long term investment and the quick money investors are looking elsewhere for their big payoffs. We find out that energy regulations can be an impediment to success.  And, from the interview with Joy we find out that Kleiner Perkins is now looking for disruptive "breakthrough technologies in renewable (energy) to take advantage of the hockey stick demand...from the market without subsidies"

My emphasis. Even the VC are begining to recognize the subsidy gravy train is about to come to an abrupt end, as the Government is running our other peoples money.  If the green technology cannot survive in a commercial market, it does not appear to have much of a future in the VC world.

I think this validate some of my reasons for supporting Prop 23 which would terminate CARB subsidy driven green energy gravy train.  If the green technology cannot compete in the open market, then it should be abandoned for technologies that can.

More in the Bill Joy interview can be found here.