Richard Branson’s Virgin Green Fund, invests in clean tech, but it doesn’t look at the shiny, brand new start-ups; it’s looking at more “grown-up” clean tech.

The New York Times reports today:

“The founders and early investors of these clean-tech companies have already weathered the riskiest period - figuring out if the technology works - and are bringing in several millions of dollars in revenue. Now, the companies need capital to become $100 million companies, and experienced advisers to refine their business model or marketing strategy.”

Because the technology has already been proven, the upfront risk is lower and, therefore, investments of these types will generate lower returns.  Nonetheless, Virgin anticipates that it will see returns of three times its investment when these clean tech companies are ultimately sold to larger companies.

The New York Times showcases two of Virgin’s investments: Quench and Greenroad. Quench markets drinking water filtration systems to businesses and Greenroad sells driving safety and efficiency technology to trucking companies.

Although returns on these investments are not expected to be the sky-high returns of a hot start-up that goes public, VIrgin Green Fund’s objectives maybe a more reasoned and profitable approach to clean tech investing in the long run. The selection process, however, is highly competitive and slow-going.  So far Virgin has reviewed “3,700 companies and invested in 10.”

Here is Richard Branson’s discussing green tech in general:

Further reading:
http://www.nytimes.com/2010/05/10/business/energy-environment/10virgin.html

http://www.virgingreenfund.com/

Companies Virgin Green Fund invests in:

Quench - http://www.quenchonline.com/
Greenroad - http://www.greenroad.com/

Photo: http://www.sxc.hu/photo/509971/

Video: Branson on green tech - http://www.youtube.com/watch?v=IFyLGlr6umY

Copyright 2010 - K.J.Collins