A new greentech start-up funding model

So, the problem of Government and VC money for greentech and possibly other start-ups seems to be at the R&D stages and not necessarily the commercialisation stage.
In the current dominant model, dollar for dollar funding is often provided by Government when you want to commercialise a prototype of something after a whole bunch of red tape.
Now that we are in the worst recession the planet has ever had since probably the beginning of capitalism, and we've got climate change which isn't slowing down despite all the reductions in travel commutes and domestic and international air travel, we need to innovate to create more 'Green collar' jobs. So, we need to redefine the funding model to make it easier for greentech start-ups to access capital right at the beginning when the first design concept and plan/strategy is formed. The old models of VC capture and Government funding needs to change.
I've broken down the new funding model into 3 steps:
1- Research for the prototype
2-Development of the prototype
3-Commercialisation of the prototype
I would argue that money 'invested' at steps 1 and 2 is far more valuable than money provided at Step 3.
In other words, less money will be needed to commercialise an idea compared to the old model of dollar for dollar or VC at step 3 - often where it's least needed..
With this new model, way more start-ups will be possible and commercialise more quickly. This is particularly important for technology start-ups because the game is changing so quickly now with new art/science/design innovations and breakthroughs that are happening at breakneck speed all over the planet.
In other words, if the R&D steps take a long time (or don't even make it to Step 3), the technology will probably be superseded by better technology elsewhere by the time, or even before, it reaches commercialisation.
Robot production lines sound exciting and futuristic but aren't suitable for every technology and business model.
Space and Defence are great growth areas and will create many jobs (along with locked up IP), with the potential  to develop greentech and make their IP open source, though I doubt that will ever happen on a large scale. Either way, I believe even more jobs will be created in greentech over the long-term (sorry, no modelling data) so we should be investing heavily in this area for the future circular economy.

Write a comment

Comments: 0