The venture capital industry focus on energy and environment has certainly zoomed into larger view. If you have an innovative idea related to energy or the environment you hope to see realized with energy venture capital funding, your timing could not be better.

A survey by the National Venture Capital Association indicates cutting edge energy or environment companies seeking funding are in an apparently recession-proof niche — provided their business has a "clean technology" or "green" angle to it. The survey showed that 400 venture capitalists expect investment to drop in nearly every other area except clean technology. When making the most of venture capital industry focus on energy and environment, consider the following:

1. Increase your chances for success by incorporating a clean technology or green aspect to your business plan.

2. Compile a list of energy venture capital firms to present your sales pitch.

3. Cast a larger net when seeking funding by considering alternative VC energy funding sources.

Action Steps
The best contacts and resources to help you get it done

Add a 'green' or 'clean' angle to your energy venture capital plan

Alternative fuels, clean coal technologies and eliminating U.S. dependence on foreign oil have been ringing in the ears of anyone who listens to the news. Venture capitalists appear to agree and are all ears when it comes to hearing environmentally friendly and clean technology related sales pitches.

I recommend: The International Herald Tribune offers the insight of Khosla Ventures operating partner Ford Tamer. Khosia Ventures has funded several projects with green technology components. Fortune's online story discusses former Vice President Al Gore's move to join the renowned energy VC firm Kleiner to help transition it to the area of clean technology.

Compile a list of energy VC firms your group should target to pitch its idea

There are hundreds of venture capital firms across the country and even more internationally. Your chances to receive VC funding improve if you target venture capital firms that have indicated an interest in investing in energy start-ups or have invested in energy related endeavors.

I recommend: Though a few years old, Energy Priorities' list of energy venture capital firms is still viable and is a great place to begin when forming a list of energy venture capital companies to target. Pure Energy Systems' website includes a directory of venture capital funds that have invested in new energy.

Cast a wider net by pitching to lesser-known sources for energy VC funds

It's worth considering funding sources not as well-known as the more popular, private for-profit venture capital firms. Educational institutions, state and federal governmental agencies and non-profits can also award VC funding.

I recommend: The U.S. Department of Energy has a list of funding sources and venture capital from American colleges and universities. Non-profit Connecticut Community Investment (CTCIC) provides economic development financing to small businesses. It recently announced loans of up to $4 million for certain green projects if they reduce energy consumption by at least 10% or generate renewable energy or renewable fuels.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Keep an eye on what is happening at state and local levels of government regarding clean energy legislation. At the state level, any new regulations may require you to shift or refocus the angle of your pitch for energy venture capital funds. At the federal level, policy shifts and new legislation could translate into a funding change for venture capital for energy projects.

Are you looking for an energy venture capital firm to invest in your innovation? Do you think your innovation can help the environment? With the costs of oil and energy going up, many venture capital firms are looking for alternative sources of energy. Your product may just be what they're looking for.

American companies and organizations are trying to find ways of becoming less dependent on foreign oil. They’re also concerned about global warming and how to save the environment. So if you have a product or service, then consider an energy venture capital firm for funding. You’ll need to do the following when looking for energy venture capital firms:

1. Employ an energy venture capital consulting firm

2. Look for a list of energy venture capital firms

3. Get to know the venture capital industry focus on energy and environment

Action Steps
The best contacts and resources to help you get it done

Hire an energy venture capital consulting firm

If you're new to the venture capital industry,consider hiring an energy venture capital consulting firm. An energy venture capital firm can help you write a business plan, create a corporate identity, and provide you with market research. Another major advantage of employing an energy venture capital firm is that it will introduce you to other venture capital firms and energy VC funds.

I recommend: Go to GrowThink, Inc. to view all of the services this company provides, including business plan consulting and venture capital research. If you’re looking to put a website up on the Internet, ask GrowThink about its website development and marketing. Check out Venture Capital Consulting. It will create a strategy and present your innovation to venture capital companies.

Search for a list of energy VC firms and energy VC funds

Finding energy venture capital companies can be challenging. That's because there are so many venture capital firms. Your best bet will be to seek venture capital industry focus on energy and environment. Look for energy VC firms or energy venture capital funds. You want to visit their websites, and see if they show energy venture capital funds they invest in. If your product or service is similar to one of the venture capital funds an energy VC firm invests in, you should make a note of both.

I recommend: Check out Capital Vector, where you can access all of the venture capital firms in the U.S. You can use Capital Vector to bring up only venture capital firms that invest in the energy sector. You must subscribe to this service. You’ll also want to look at Energy Priorities. This website only lists the energy venture capital firms for you, saving you time and effort.

Get to know the energy venture capital firm's investment focus

It's important to know the energy VC firms' investment focus. You want to see if your innovation might fit with their investment objective. Find this information by going to the energy venture capital firm's website and looking at either its mission or industry focus page. Another way of learning about the energy VC firm's investment objective is looking at its strategy.

I recommend: Environmental Capital Partners supports all areas of the environmental sector, striving to reduce or eliminate environmental damage to the water or air. Nth Power is looking for technological innovations in the energy sector.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Build a solid relationship with your venture capital consultant, which can be a great resource as you understand the venture capital industry.

The venture capital industry focus on energy and environment tends to shift in response to stock market trends, government legislation, as well as technologies leading the way toward harnessing energies while protecting our environment. If your entrepreneurial idea involves the advancement of solar, wind, geothermal or other renewable energy sources, it is important to make sure your business plan for raising energy venture capital funds is top notch.

To make sure your business plan stands out above the competition, it is critical to have an understanding of the venture capital industry focus on energy and environment news and trends. When honing your efforts toward energy VC firms to obtain energy VC funds, it is important to consider the following:

1. Energy venture capital firms are interested in clean energy technology over the long-term, but may direct some of their dollars elsewhere in the short-term.

2. Venture capital for energy projects may increase for greentech companies

3. Keep abreast of where venture capital for the energy industry is headed via blogs, RSS feeds and online news publications.

Action Steps
The best contacts and resources to help you get it done

Understand that energy VC firms investments will likely slow down over the short term

Analysts are predicting a short-term trend showing a slight global decline in venture investment for cleantech companies. Nevertheless, it is expected clean energy projects will play a crucial role in long-term energy needs once the global economic outlook improves.

I recommend: Cleantech Group's article discusses the bumpy road ahead for clean technology, including potential failure rates of early stage cleantech companies to potentially double this year. RM Media Group's online publication "Colorado Energy News" discusses many trends for the upcoming year, including clean energy technology.

Look for energy venture capital firms focusing on greentech companies

Industry experts are anticipating that greentech companies will grab a larger piece of the pie than other VC sectors in the days ahead, according to a National Venture Capital Association survey. If your business idea is in the greentech arena, this may very well be your year to shine.

I recommend: Greentech Media discusses venture capital investments in the weeks and months ahead. The Clean Energy News Blog says the future will be bumpy compared to a banner year, but, compared to other areas, still bright.

Subscribe to RSS feeds and read industry blogs to keep up to speed on energy VC firms

There are many energy and environment publications useful for keeping you up to speed on issues and trends facing the industry. It is also wise to read or participate in online venture capital communications forums to ensure you know what is going on from a funding perspective.

I recommend: YoungEntrepreneur is a blog devoted to VC and includes viewpoints on energy venture capital companies. The Alternative Energy Blog includes an RSS feed to keep up with alternative energy industry news.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  It's important to keep an eye on what is happening in Washington, D.C., regarding environmental legislation and take notice of how energy venture capital firms react. Whether in the form of a cap on carbon emissions or a trade bill with environmental components, legislation can set the tone for job creation and investment funding directives.

Whether you plan to start a business or run an established company in the energy and environment sector, venture capital (vc) is an essential component to support current projects or future endeavors. Social venture capital companies that offer seed money to businesses that focus on energy and the environment need to know the ways you plan to use vc funds. A well-written business plan can convey your needs and project how much of a return a venture captial company can expect from their investment. A reputable venture capital directory can locate potential energy venture capital firms to help you secure the private equity capital for your business.

Regardless of your specific venture capital needs, learn about important key terms that pertian to the venture capital industry's energy and environment-focused firms as you research vc possibilities in your industry.

Action Steps
The best contacts and resources to help you get it done

Cleantech or 'green' venture capital

Cleantech venture capital, also referred to as 'green' venture capital, is vc earmarked for businesses dedicated to renewable energy resources such as solar power, wind power and recycling.

I recommend: Learn more about cleantech vc at VentureBeat.com.

Energy venture capital firms

An energy venture capital firm is an investor company with a focus on environmental issues. The energy vc firm caters to renewable energy companies.

I recommend: Pure Energy Systems offers more information on the types of energy venture capital firms available to fund renewable energy projects.

Seed or 'early stage' venture capital

Seed venture capital, also called 'early stage,' is vc allocated to companies to support start-up costs.

I recommend: Funding Post further defines seed venture capital and offers more information on numerous terms associated with the vc industry.

Business plan

To secure venture capital, a company must present a business plan to the venture capital firm. A business plan is a presentation of how the potential vc will be used and the projected return the venture capital investor can expect.

I recommend: Learn how to write a well-rounded business plan with a focus on the environment at bplans.com.

Venture capital directory

A venture capital directory is a listing of vc firms that offers contact information and a description of the firms on the list. VC directories are generally searchable by location or focus.

I recommend: Energy Priorities offers a directory of energy venture capital firms.

Venture capital valuation

Venture capital valuation is an estimate of what a company is worth before a vc firm invests in it and what it is worth after venture capital is invested. Venture capital firms use valuation to determine what the return may be on the investment.

I recommend: Learn more about venture capital valuation at milleniapartners.com.