Good News for Cleantech Startups?

Image by Steve Wampler via Flickr

Looks like the stimulus package is starting to boost the fortunes of companies in the business of energy storage.

Advanced-battery and fuel-cell startups raised $126 million in the first three months of this year compared to $34 million raised in the fourth quarter.  That stands in stark contrast to what’s happening in most of cleantech, which had a more than 40% decline in investments compared to the previous quarter. This is according to figures from the Cleantech Group, cited on the Greenbiz blog.

Turns out,  the government has yet to determine how to allocate, most of the money from the stimulus package. But,

The batteries — and electric vehicles — sector has been one of the few that already has received government solicitations, and venture capitalists seem to be anteing-up in response.

The $2 billion set aside for batteries in the stimulus comes on top of up to $25 billion in direct loans that became available last year for advanced vehicles, including related energy-storage technologies.

via Batteries Buck Downward Investment Trend – Green Inc. Blog – NYTimes.com.

Also, the piece predicts a surge in companies in the business of transporting biomass for cellulosic biofuels, because there have been recent grant solicitations in that area, too.

While $126 million is not an earth-shattering amount of money, this clearly is just the tip of the iceberg.  As the government starts letting loose stimulus money aimed at different alternative energy sources, venture capitalists and other investors will probably start getting cleantech religion again.  For clues to just what the hot areas will be, here’s my suggestion: Keep tabs on the latest grant solicitations.