Venture capitalists are looking at obscure start-ups in thermal solar energy, wave power, and algal biofuel.
Despite the sluggish economy, alternative-energy start-ups received a record $2 billion in venture capital funding in the second quarter of 2008, a 58 percent increase from a year earlier, according to Cleantech Group, a market research firm. Today, clean technology—which includes alternative energy producers—accounts for 20 percent of all venture capital funding, up from just 1 percent in 2001, says John Balbach, a Cleantech managing partner. “Silicon Valley is going through yet another transformation,” he says.
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