Clean-tech companies might struggle to find startup loans

Americans increasingly love to go green with energy efficient lighting and eco-friendly recycling practices. For a time, it seemed entrepreneurs would also be well-advised to go green as clean-tech startup companies were a favorite among venture capitalists, making it easy to find startup funds.Now, a recent report from Business Week suggests many investors have been warned against putting money behind green technological enterprises. The report comes with a warning from Vinod Khosla – currently the biggest U.S. investor in green startups.

The source points out the government has been offering aid to clean-tech companies and that government subsidized enterprises notoriously flop. Additionally, since the tech industry is extremely cutting edge, it may be hard for businesses to stay on top of the market, making the investment high-risk.

These reports come just a month after Silicon Valley venture capitalists announced that they were increasingly confident in investments in green technology, demonstrating that investor markets can be fickle.

Entrepreneurs who were considering business incorporation of a green tech company – and all other business types, for that matter – might be well-advised to look for startup seed money from familial investors or community bank loans. Additionally, inexpensive incorporation offered by online services can help save money that can then be invested in a business venture.