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Corporate Finance Strategies for Clean Tech Companies and Investors in A New Economy
Volume 1, Issue 2
Abstract:
In this challenging economic climate, very few clean tech companies to date have successfully completed an initial public offering (“IPO”) on the American capital markets, including the NASDAQ. Market factors have been largely to blame for the failure of clean tech companies to successfully go public on these capital markets, but additional factors have prevented companies from going public as well. In this article, Mark J. Graffagnini examines several issues faced by venture-backed clean tech companies seeking financing in the current recession and beyond. Specifically, Mr. Graffagnini discusses financing terms that venture-backed companies may face in the current economic climate, investments and mergers & acquisitions in troubling economic times and listing on foreign capital markets for clean tech companies considering trading on an open market. Clean tech companies must use every available advantage to survive the recent economic downturn to receive short-term financing and should begin to further consider longer-term capital strategies on alternative capital exchange markets to ensure their survival and growth if the U.S. IPO market does not open up soon. At the same time, companies and venture capitalists alike should consider whether and how to create a market similar to some of the smaller international exchanges to get access to growth capital for longer term viability.
Full Text (PDF)
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