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Why We Say No

Posted by on in Venture Capital

Chances are, some of you have pitched to Pangaea in the past. We probably said "no". Although we invest at a good pace, saying "yes" to the most compelling opportunities, we don't like to waste our time, or yours. So, if we're going to say "no", we'll try to do so as quickly as possible.

I'd like to summarize some of the reasons we say no, grouping them in 4 basic areas: Fit, Management, Momentum and Exit.

Over the past two or three years, a consensus view has developed that the capital inefficiency of clean tech startups makes them incompatible with the venture capital funding model. Many investors with their feet half in are delegated to invest only in business model innovation, efficiency software, controls technology, grid optimization and so forth. It’s hard to disagree with these folks when reflecting on the colossal quantities of risk capital that has been deployed to support innovation such CIGS solar - without commensurate returns. Unfortunately, this ignores the fact that the change-the-world type innovation occurring in labs around the world is exactly the type of technology that has scared many investors away.