Exploring Israeli Venture Capital Investing In Renewable Energy

Abstract

Israel’s venture capital market is one of the largest in terms of capital investing in the world. However, in 2014, 5 of 83 independent venture capital firms located in Israel invested in renewable energy portfolio companies. The result of investing in few renewable energy firms in Israel is a continued reliance on imported fossil fuels from geographically distant nations. The importation of fossil fuels creates an added security risk in an already hostile political environment. The gap in research addressed in this paper explored factors for the small number of renewable energy firms receiving venture capital funding in Israel. The research question guiding this study was what are the factors for the small number of renewable energy firms receiving funding in Israel. The lack of renewable energy firm funding appears to be as a result of three factors. First is low return on investment. Second is regulatory uncertainty from the Israeli government. Third is the lack of knowledge of renewable energy by independent venture capitalists.