A VC colleague and industry luminary remarked about the proposed IPOs of
the likes of Amyris, Codexis, Tesla, Solyndra, Molycorp, Fallbrook Technologies, and other
greentech firms: "When some of these inevitably belly-flop, I sure hope
it doesn't set the whole sector back."
His concern is
reasonable. What most of these firms have in common is a very unclear
path to profitability. (Although that hasn't stopped A123
from keeping its head above water in public markets.) The two recent
greentech companies with even a hint of a profitable business model, solar firms Jinko and Daqo, withdrew their IPOs
because of "market conditions."
Warren Hogarth, an investor at
venture capital firm Sequoia Capital, spoke at a recent industry event
and said, "It won't do the industry any service if we put companies out
that run up in the first three months and then collapse soon
afterwards." Hogarth added that "companies are filing [for IPOs] and
there is optimism for those companies, but there is also a pervasive
sense of caution," concluding: "It's earnings that matter."
To read the full, original article click on this link: These Aren't the Greentech IPOs We're Looking For : Greentech Media
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