Report projects reduced VC funding for cellulosic ethanol

Ethanol Producer Magazine October 2009
By Erin Voegele
Report posted Oct. 2, 2009, at 11:50 a.m. CST

A report recently competed by Lux Research concluded that venture capitalists’ (VCs) interest in funding cellulosic ethanol has passed its peak. The report, titled “Funding Exits for Biofuels and Biomaterials Investors,” found that venture funding for agricultural and industrial biotechnology gained considerable momentum during the last decade, soaring from $47 million in 1998 to $1.2 billion last year. However, only nine of the 170 CV backed companies researched in the study have seen successful exits to date. According to Samhitha Udupa, the report’s lead author, a successful exit occurs when a VC-backed company is acquired or completes an initial public offering (IPO).

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