Green Bubble Brewing?
As I drive around the Bay Area, I see numerous signs that the world is moving more green. From the solar panels on a local Target to the wind farms in the far East Bay, it is apparent that the green movement has picked up a lot of steam. That said, there are plenty of signs that we ain't seen nothing yet.
The biggest indicator that the green movement is in its infancy? The fact that investment in green tech and renewable energy is reaching record levels. This investment will spawn a new generation of technologies that will eventually mature much the way solar has, with huge ramifications on transportation, architecture and overall resource reuse.
That said, it is a bit daunting. Every day, we hear about new and amazing advances that if brought to market, threaten to change the economics and ecologic impact of traditional markets. But in many markets most experts say only one or two approaches will ultimately win out. Are we setting ourselves up for Bubble 2.0? Not necessarily.
I think most VCs and investors learned a lesson from Bubble 1.0 (as did PR firms), in that it takes more than demo ware and a well-written business plan to make it in the post-bubble world. Bubble 2.0 will likely look more like a traditional maturation of markets signified by consolidation and reduced margins once some of the innovations go mainstream and see increasing amounts of competition. Other advances may be less viable commercial and go under altogether, but the green momentum will continue.
In the meantime, get ready for an even bigger flood of green marketing noise. Outside of solar and wind, a lot of the investment is going into R&D and manufacturing capacity, so the marketing phase that typically follows widespread venture investment is in its infancy.
Posted by Jason Morris on November 2, 2007 at 1:22 PM
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