Where angels dare

New service links environmental entrepreneurs and potential investors

Heard the one about the great green technology that failed for lack of funding? The exciting innovation that withered without the necessary capital? An all-too-common lament. So, step forward, AngelBourse.

The aim of this new ‘gateway’ service is to help kick-start young environmental companies with high growth potential, by giving them access at an early stage to a network of investors, ranging from mainstream banks to clean-technology funds and venture capitalists.

Adrian Wilkes is executive chairman of the Environmental Industries Commission - a UK small business trade association and AngelBourse’s project partner. He claims this is “a vital new service for the UK’s environmental industry”, and adds: “One of the big barriers for any individual company’s growth is access to finance, especially in an industry dominated by small firms.” Climate change solutions, land remediation and sustainable waste management are some of the ‘hot’ investment areas he expects to get particular benefit from the scheme.

Alice Chapple, director of sustainable financial markets at Forum for the Future, hopes AngelBourse will channel much needed start-up capital into eco-construction and air and water pollution control. “Clean energy is enjoying a boom at the moment, but new sustainable technologies in other areas are being financed much less.” But, she warns, access to finance isn’t the only barrier; other curbs to growth include market inertia among highly regulated industries, lack of regulatory incentives, and the unproven track record of many eco-entrepreneurs. - Oliver Balch

Forum for the Future is organising a workshop on 19 September to discuss the financing of environmental technologies and services. Contact Alice Chapple (a.chapple@forumforthefuture.org.uk) for further information or a copy of the workshop report.

10 October 2006

Oliver Balch