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Venture capitalists in Silicon Valley have been searching for the next big thing in high-tech for years, but now many have switched to greener pursuits – finding technology to help cut global warming.
Although commercial success could take years, venture capitalists are pouring cash into solar power, fuel cells, wind energy, biofuels, new lighting microchips, “smart” power grids, and other innovative energies.
“The best brains in the country are no longer working on the next pharmaceutical drug or the next Silicon Revolution. They want to work on energy,” said Vinod Khosla, a top venture capitalist in Silicon Valley.
While there is competition from Canada, Germany, China, India and other nations, traditional energy companies have been relatively quiet.
“It is under-researched. There are easy pluckings. Oil companies spend no money on research, especially outside of how you discover more oil. All their efforts are token or nominal. The same is true of the coal business,” Khosla said.
R&D Wave
It could be years, however, before “clean” power plans translate into commercial products, not only because of scientific barriers, but also due to uncertainties about timing, market development and competition.
“We have yet to see any major successes. A lot happening right now is sort of a research-and-development wave for individual technologies, Silicon Valley and industry itself,” said Regis McKenna, a veteran marketing strategist who helped launch Apple Inc., Electronic Arts, and Genentech, among others.
McKenna recalled that the microprocessor, the brain of computers, was developed in 1971 but it took another ten years before pioneer Intel found a market for the device in personal computers.
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