Output details

Venture Capital Needs for Sustainable Development of Clean Technologies

1. How are Clean Technology Firms (CTFs) financed in Sweden?

2. What is the potential of the Technology Approval Group (TAG) concept to bridge funding gaps in the Swedish market?

The research is based on a case study of the Clean Technology sector in Sweden.

Semi-structured interviews were applied to gather qualitative data. This primary data is complemented by secondary data from reports focusing on contemporary issues regarding financing of CTFs.

This study showed that the main obstacles and challenges for CTFs to attract funding and for investors to find suitable investment objects in the CT sector are interlinked. The research also indicated an abundance of innovators and a lack of entrepreneurs as one of the main causes of the funding gap identified in the literature.

Business Angels might be the most appropriate source of funding for CTFs since Venture Capital funds, in general, seem to perceive CTFs as too risky to invest in and the sums appropriate for investment as too small.

The nature of the funding gap in the Swedish CT sector is represented in a revised conceptual framework, and it is likely that there is a potential for the TAG concept to be applied in Sweden, especially within the energy sector.

The current problem with a funding gap in the CT sector will probably remain for some time, creating opportunities to apply the TAG concept. That opportunity is likely to diminish over time, however, as a result of market growth, recognition and knowledge of the CT sector, leading to a situation where CT is associated less with perceived risks.