Cleantech is the fastest growing sector for venture capital, and Indiana attracted $26 million in venture capital between 2006 and 2008. Price-Waterhouse-Coopers reports that cleantech captured 5% of all venture capital investment in 2006, 9% in 2007 and to 15% in 2008. That added up to $4.7 billion in 2008 – a 68% increase from 2007 and more than 20 times the amount invested in 2002. Companies can also raise cash for cleantech investment more easily: In 2002 only 43 companies raised money from venture capital, but by 2008 that number rise to 171.
These investments are powerful job-creators. The National Venture Capital Association estimates that each $100 million in venture capital funding helps create 2,700 jobs, $500 million in annual revenues for two decades and many indirect jobs.
The Hoosier State attracted $26 million in venture capital over the last three years, but that figure will grow significantly if we adopt federal energy policy.
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