Investing radar finds energy ventures again

0 Comments | USA TODAY, January, 2007 | by Jim Hopkins

SAN FRANCISCO -- Investors in start-ups are expected to pump even more money into energy ventures in 2007 after doubling their bets last year amid shifting politics and global-warming worries. Venture-capital firms poured $536 million into biofuel and other energy ventures in the first three quarters last year vs.

$224 million in all of 2005, says industry tracker Dow Jones VentureOne. Last year's gain came as overall VC investing rose a smaller 9.7%, to $19.5 billion, from 2005's comparable three quarters. The rise also dwarfed the figure five years before, when investors flocked to energy during California's electricity crisis, only to cut back after the crisis passed. Now, VCs are returning to the sector, following a "sea change" of interest in alternatives to...