Cleantech and renewable energies — market and investments

In recent years, a thriving cleantech startup scene has developed in Europe thanks to intensive research, strong interest from venture capitalists and generous government funding programs. Growing energy demand, the need for greater security of supply, and rising oil and energy prices are among the key drivers of the global cleantech boom. Germany plays a major role in this development.

In the aftermath of the nuclear accident in Japan in spring 2011, growing skepticism about nuclear power led Germany to initiate an energy turnaround that is unique in the world and sees renewable energies as a central component of future energy supply.

Cleantech is already a serious economic sector in many countries and, in the eyes of some economic experts, embodies the growth engine of the future. Investors can benefit from this development in various ways, for example by investing in technology companies or infrastructure projects in the cleantech and renewable energy sectors. Zouk Capital has been pursuing this investment strategy with great success since 2004 and is one of the largest and most experienced cleantech investors in Europe. Germany has played an important role for Zouk for many years - about 40% of all Zouk portfolio companies are based here. Through many years of cooperation with German entrepreneurs, investors and politicians, we have gained deep insights into the local market, which we would now like to use to take stock of the past and future development of the cleantech markets and the investment opportunities for investors in Germany at the end of 2011.

What is cleantech?

The term cleantech was coined in the late 1990s, but is now applied to a variety of different topics. Cleantech Group, an international consulting firm and cleantech pioneer, defines cleantech as new technologies and business models that aim to, (a) achieve better performance at lower cost, (b) drastically reduce the negative ecological impact; and (c) use natural resources productively and responsibly.