The Carbon Trust has today launched a service to fast track green technology start-up firms from development stage to commercialisation.
The '
Carbon Trust Entrepreneurs Fast Track’ will provide 'customised’ r
esearch and development (R&D) funding to
small firms developing
low carbon innovations, as well as expert advice and networking opportunities. It will channel £5 million a year into clean tech ventures with the highest growth potential with the aim of turning them from high-risk
investment propositions into investment opportunities, helping them on their way to commercialisation.
The Carbon Trust said it had deliberately launched the new service on the same day as the Committee on Climate Change released a report saying that the Government needed to spend more on low carbon
innovation.
Both announcements follow £34 million worth of Government cuts to green technology
funding – £12 million of which are being slashed from the Carbon Trust budget.
Green innovation "a must""[The CCC report] has come at an important time," said Tom Delay, chief executive of the Carbon Trust. "We welcome the recognition of the need for continued and expanded funding for wise, focused and output-driven low carbon innovation. Good innovation that leverages private sector investment, and focuses on UK benefit is a must. It will deliver significant economic opportunity for the UK as well as helping us meet our short and long-term carbon targets.
"It is for this reason that the Carbon Trust has today launched a new service –Entrepreneurs Fast Track – to help early-stage companies make the transition from low carbon concepts to commercialisation. These ventures are often high-risk in nature and find it difficult to attract finance and managerial talent. Our new service aims to de-risk them by advancing technology development and building a solid commercial foundation for growth."
Clean tech companies surveyed
The Carbon Trust said the new service had been developed following consultation with more than 400 early stage clean tech companies in the UK. The majority of companies surveyed said 'proof of concept’ and prototype
building and testing were the most important forms of support to successfully move to commercialisation. Protecting intellectual property and sourcing seed or venture capital finance were the next two most valued types of support, according to the research.
The service was today welcomed by the Federation of Small Business (FSB), which represents many business start-ups.
David Caro, chair of the FSB Environment Committee commented: "Innovative green
small businesses have the potential to lead the way to a low carbon economy […] The Carbon Trust’s Entrepreneurs Fast Track scheme is exactly what we need to help our early-stage clean tech firms."
The business angel community also welcomed the new service, saying it would provide an important new interface between it and the investment-ready clean tech start-ups.
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