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Blogs under tag IPOs

The premature clean-tech IPO boom Posted by Shankar on Thu August 19 2010 11:07:18 PM

There is nothing new in this article that we havent discussed in the last week about Petroalgae and other new IPOs in the biofuels space.

However, I have given the link to the article for whatever its worth.

Early-stage green technology companies are taking a page from the biotech playbook: IPO with little or no revenues. So far, it's not working.

A number of tiny, ambitious companies in a promising industry with a very small market are lining up to tap the public markets. It may sound like the biotech IPO boom of the 1990s, but this time it's firms in the clean tech industry filing S-1s faster than they can earn a buck.

During the biotech boom last decade, young companies -- often without any revenue at all -- sold investors on the possibility of new blockbuster drugs. Along with the broader tech market, the industry crashed in 2001. Successful ones were acquired; most went bust. A decade later, a few superpowers continue to dominate the pharmaceutical world, although plenty of young biotechs are still vying for that elusive FDA approval with the backing of public money.

This time around, it appears to be a different industry with the same model: raise money today to finance a business model for tomorrow. It's early-stage green technology companies that are funding their research and development for a market that is mostly non-existent today. Their hope is on a blockbuster fuel instead of a blockbuster drug.

The latest revenue-free company to join the ranks is PetroAlgae, which filed for a $200 million IPO last week. The company makes technology to grow and harvest algae, which many believe is a promising source of renewable energy. It has lost $66 million during the past three years without bringing in a single dollar in revenues.

Past, Present and Top Ten Greentech IPO Candidates Posted by Shankar on Tue August 17 2010 02:48:06 AM 3

Of late funding in the green tech markets are diminishing.
VC activity too is not as fast as it used to be.

The public market regurgitated Solyndra. The shiny bolus ofTesla has been swallowed, although that firm's value proposition has not been fully digested or priced. Petroalgae has already been written off by analysts.

Read the article here