Savings Experiment: Snow Removal
Why Your 2012 Tax Bill May Jump By $8,000
The U.S. Department of Energy is becoming a major venture capital player. The government agency is shooting to dish out -- through loans and grants -- more than $40 billion to companies in the clean technology space. The DOE is looking to fund a wide range of businesses in this space from solar panels to electric cars. In the first three quarters of this year, the department pushed out $13 billion under this model, far ahead of the $2.68 billion that venture capital funds pumped into the sector.
So far, more than 40 companies involved in the auto industry have pursued DOE cash. They have their collective eye on the $25 billion in federal low interest loans that have been allocated to the sector.
Darryl Siry, former marketing top dog at Tesla Motors, tells the Wall Street Journal, "The existence of an 800-pound gorilla putting massive capital behind select start-ups is sucking the air away from the rest of the venture-capital ecosystem." He also notes, "Being anointed by DOE has become everything for companies looking to move ahead."
If you're looking for seed money for a new green venture, don't expect the DOE to jump at the chance to back you. The department is mostly interested in companies that have already picked up some substantial private investment. Unfortunately, the venture capital backers are looking for companies that have picked up federal financial support.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
