Clean Tech & How to Fund Growth

Posted on | November 26, 2009 | 1 Comment

Growth Funding for Clean Tech and Other Similar Opportunities With all the environmental concerns getting bigger and bigger every day now, Clean Tech is an emerging business sector with lots of promise – presumably.

I say presumably because on one hand, if we are to avoid self extermination, it is quite clear that we need collected humanity to reduce the size of our species’ ecological footprint. Certainly it is to me, even if those on the Rabid Right disagree. [Hey there you ‘free market’ anti-government fanatics, get your heads out of the sand so we all don’t die!]

But on the other hand, I know how unwilling the global majority is to reducing their standard of living, even if it looks like that will be the only way to save the planet for our children and their grandchildren. Indeed, countless environmental companies have come and gone in the past 20 to 30 years despite the huge value-added result they all produced. Heck, I still have stock certificates from one that failed a long time ago. So, why all the biz-eco failures? The answer is easy: they lacked support – both from investors, and even more critically, from customers.

Thankfully, this issue of ‘lack of support’ seems to have permanently changed. On the consumer front, it can be seen it the way stainless steel water bottles are replacing plastic ones everywhere you turn and how our governments have forced change by putting a consumption tax on grocery bags and dictating our garbage recycling habits. So, it is little wonder why so many entrepreneurs have flooded into the Clean Tech sector recently to pursue the numerous emerging opportunities there, and why venture capital firms galore are now lining up to feed the most promising with the extra cash they need to grow. But what I noted on the internet today was how ‘main stream’ all this Clean Tech is becoming.

That is because I read the Wellington Financial blog post Clarus Securities looks at Copenhagen impact on clean tech stocks by Mark McQueen.

Wellington Financial LP is a privately-held bridge financing & venture debt lender that I experienced a year and a half ago when I was looking for debt financing to fuel the turbo-charged growth of my client Origin BioMed. Based on the interaction I had then, and all that I heard about them before and after, Wellington Financial has my respect. If you are looking to achieve an important business goal and financing is a must to get you there, it would be well worth your while to check out what Wellington Financial might be able to do for you.

Founded in 2000, Wellington Financial is a recognized leader in providing flexible financing solutions to private and publicly traded growth companies across Canada. Their sweet spot is lending between $2 million and $10 million directly to any one qualifying client or up to $30 million in a syndicated deal. Their clients vary in size and business model but generally they all have at least current year run-rate revenues of $5 million or more. The Wellington Financial model is to advance funds for as short as six months or for as long as three years depending on the needs of the private company’s business owner(s) or the public company’s board of directors. Their preferred industry sectors include automation, biotechnology, business services, communications, healthcare, industrial products, light manufacturing, oil & gas services, and technology.

So, there were two things Mark McQueen’s blog post did for me:

It related Clean Tech, the business end of the high-profile social & environmental consciousness movement that is raging today, to specific stock market opportunities, which is something I wasn’t likely to come across otherwise despite all the attention this sector is getting; and
It spoke to Wellington Financial’s obvious willingness to do funding deals in the Clean Tech sector.

As a consequence, it proved just how ‘hot’ Clean Tech is today for companies with mid-sized or better ambitions, which is the type of business growth goal I and my colleagues in CNi help companies achieve.

If you have a Clean Tech company with proven success as a small or mid-sized business, I’d say the door’s open for you to get more financial resources if that is what you need to grow. Check out what Wellington Financial might be willing to do for you.

If you need help getting your company deal ready or doing it, call me.

© Blog.TonyJohnston.biz & Compass North Inc. 2009

Article by –

Tony Johnston, CMC, CGA, MBA, BA (Econ)
President
Compass North Inc.
18 Balding Court
Toronto ON
M2P 1Y7
Office: 416-342-5652
Mobile: 416-346-4140
www.CompassNorthInc.com
www.CNiRapidResearch.com

Tony Johnston is a business results specialist, top level executive and management advisor. Having successfully led 4 turnarounds and with many significant operations, deal making and finance oriented accomplishments to his credit, Tony helps companies drive:

› top line growth (revenue)
› bottom line improvement (profits)
› cashflow management (credit line control)
› growth strategy (more / new)
› financing & stakeholder relationship management (debt / equity)
› enterprise value maximization (mkt price)
› acquisition planning & execution (find / close)
› divestiture preparation & execution (prep / negotiate)
› information gathering (competitive intel / market research)
› crisis control (turnarounds & wind-downs)
› enterprise leadership (CEO / CRO / CFO)

Compass North Inc. is a management & advisory services firm that helps companies achieve important, challenging operational, financial and transaction oriented goals. Examples of what we do include helping companies and their owners:

– make better decisions by providing customized competitive intelligence,
– grow by crafting strategic plans and implement them,
– get turned around by dealing with their debt or other business problems,
– borrow more money and/or raise more equity, and
– plan, prepare, negotiate and close acquisitions, divestitures and ownership
transitions.

Bottom-line: The benefit that Tony and Compass North Inc. deliver is helping company owners maximize both what they earn while they own their business and what they bank when they sell.

> Follow me on Twitter @CompassNorthInc

Comments

One Response to “Clean Tech & How to Fund Growth”

bizsugar.com
November 26th, 2009 @ 9:27 pm

Clean Tech & How to Fund Growth | Biz Money Matters|…

It seems clear that Clean Tech is a really ‘hot’ sector today. But how much growth potential is there for companies with mid-sized or better ambitions? And can such companies get financing?…

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Posts by:

Tony Johnston
President
Compass North Inc.

Tony provides executive management and advisory services that help companies get MORE !!

sales / profits / cashflow
financing / exit valuation

Tony delivers the leadership or leadership support needed that can make remarkably outstanding results happen operationally, economically, financially and in the eyes of customers, lenders & transaction counterparties.

If you are a decision maker in a company that wants MORE, give him a call at 416-342-5652 or check out the Compass North Inc website [click here].

Tony's ability to help companies achieve important/challenging goals is well demonstrated by his long record of success, which includes:
- 4 successful turnarounds lead
- $66 mil+ increase public
  company's value
- $34 mil value harvested
  from biotech cofounded & lead
  as CEO
- $12 mil/3x investment gain
  in 2 years delivered for
  VC partners
- $2.5+ bil in public & private
  market debt, equity and
  M&A deals done
- 1 successful company IPO
- 4 new businesses organized &
  grown: Biotech; Securitization /
  Mortgage Servicing; Third-Party
  Logistics (3PL); & Consulting