The valley of death refers to the severe financial risks that startups face as they struggle to grow from small teams to viable ventures. The dip of the valley refers to the debt -- i.e., the negative balance sheets -- that companies experience as they invest money now in hopes of making it back upon success (the accompanying figure provides a general description).
Nowhere is this valley of death more evident than in clean technology, where startups face a difficult combination of challenges. On the one hand, there is the challenge of teams seeking $50k to $5M or more in funding to begin translating their advanced science into industrial processes (moving thin-film solar or fuels from algae out of the lab and into commercial production) and, on the other hand, there's the challenge of funded startups trying to raise investments for the industrial-sized plants and equipment needed to utilize those emerging processes.
To read the full, original article click on this link: Into the Valley of Death : Greentech Media
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