Ashley Halligan, an analyst at Texas-based Software Advice and a contributor to Green Project Marketing, published an article on VentureBeat in December outlining the growing trend in VC-funded digital cleantech–shifting from typical hardware-based investing.

Her story provides interesting points like, “The nearly five million commercial and industrial facilities in the United States account for nearly half of all domestic energy consumption, at a cost of over $200 billion each year. But according to Chris Pacitti, general partner at venture capital firm Austin Ventures, only five percent of that market has adopted sophisticated energy management tools. Investors are taking notice.”

And, “A Pike Research report estimates the EMS and services industry will grow to $5.5 billion by 2020, from just under $1 billion in 2011. That’s a compound annual growth rate of more than 20 percent.”

She makes a great point: "Economic and legislative forces are driving numerous changes within the energy management landscape. With the re-election of President Obama, there will likely be a continued emphasis on climate change, sustainability and energy independence. This gives investors a long-term opportunity for funding a market that will inevitably be expanding for quite some time."

To read what else venture capitalists have to say about the trends–and the long-term revenue potential, read the full article here.

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Ashley M. Halligan
Software Advice