Venture Capital For Environmentally-Conscious Startups

Venture capitalists are always looking for a place to put their money. One area that is seeing growth today is venture capital for environmentally conscious startups. This makes sense for several reasons.

1. Opportunities. Environmentally conscious startups are popping up all over the place. We are talking about many different opportunities to invest such as biodiesel and waste reclamation, solar energy, and water purification. Money is coming into these green technologies from both the old guard VC firms as well as the so called new breed venture capital firms.

2. A good cause. The trend for going green is over 15 years old now and is an established cause as well as a sector where venture capital can do good and make money at the same time.

Venture capitalist David Kirkpatrick, managing director at SJF Ventures in Durham, North Carolina says this: ""We look at all kinds of energy and environmental technologies, but it's different than the '70s and '80s boom in environmental cleanup technologies: Today, these are proactive technologies, not reactive."

A example of this would be junked car auctions. It is a green technology because the process leads to more recovery and reuse. It is a win-win situation because the seller receives a higher value for the vehicle and the auction company pockets a nice profit. 

This has led to more venture capital for environmentally-conscious startups in this market. There are many of these that the average person would not even think of such as efficient crop irrigation technologies, and organic pesticides.

From a venture capitalist point of view they are not looking to sacrifice profit because of environmental concerns. Luckily they do not have to. There are many solutions to both problems, and as green startup companies continue to grow, the need for money will be even more important then it already is.

How Can Your Business Benefit From Venture Capital Funds

If you are planning to start a business, there are many different ways of getting the needed capital. You can access your savings, borrow from family and friends, or acquire a loan from a bank. An alternative way is starting a venture capital fund. This is money funded by investors who think that your business has the potential to grow. The investors are usually wealthy people who are willing to fund any business idea they think has the potential to be a worthy business.

What are the benefits?

1. Easily accessible funds. With a workable business plan, you are able to get venture capital to kick start your business. You can get a lot of money to start off the business and support it until it stabilizes.

You do not have to worry about money to rent business space, pay workers, buy furniture, equipment, or for supplies. The fund will take care of everything that the business needs.

2. Faster business growth. You do not have to bootstrap for your business to grow. Since you already have enough capital to kick your business it will be easier to grow it faster. Even the effort you put in for it to grow will be less because you have enough capital to market, buy all the supplies you need, and pay employees.

3. Great business advice. The investors who provide venture capital also make sure you make the right business decisions. They are there when you need support, advice, and mentorship.

It is always assuring knowing that you have people who have more knowledge and experience looking after your business. You know that nothing can ever go wrong when they are around. You also learn a lot from them which helps you steer your business forward.

This are reasons new business owners should think of venture capital funds and how your business can benefit from them.