Epsilon Archive for Student Projects

Abstract

This thesis describes and examines a new line of business, CleanTech. CleanTech
comprises a wide range of different types of companies and is not yet well defined. In
this thesis only the Swedish market is considered, and a variety of players on the
market are included to give the most extensive picture of the current situation. Recent
research shows that a gap has arisen between governmental financing and private
equity-investments in CleanTech-companies. This gap occurs mainly in companies in
expansive phases and causes problems both for the companies and for the line of
business as a whole.

To investigate this gap the Swedish CleanTech-business is described in terms of
earlier and existing financing, age and size of the companies and their turnover and
profit. Other players on the market such as networks, governmental support and the
private equity-companies are examined and presented. Furthermore a number of
private equity-companies are interviewed about their perception of risk and their
willingness to invest in CleanTech-companies. This altogether is used to analyze why
and where the gap occurs and what actions can be taken to close the gap. The results
show that investments in CleanTech do not have to be high-risk investments. The risk
is instead linked to the maturity and also, of course, the perceived chances of success
for the company. Thereby the gap could be closed if there are enough CleanTechcompanies
with great ideas and enough networks and other links to connect these
companies with the right private equity-companies.