Born-to-Be-Green: Financing Cleantech Firms in the UK

33 Pages Posted: 31 Aug 2022

See all articles by Sean O'Reilly

Sean O'Reilly

Technological University Dublin

Ciaran Mac an Bhaird

Dublin City University

Robyn Owen

Middlesex University - Centre for Enterprise and Economic Development Research (CEEDR)

Suman Lodh

Kingston University London

Abstract

This paper investigates the financing of 739 Cleantech firms in the UK that have recently raised equity finance. We find that Small and Medium Sized Cleantech firms raise external equity due to financial constraints and to ameliorate illiquidity. We also provide evidence that intangibility does not play such an important role in raising equity financing and discuss the role of IAS38 for Cleantech firms. We find that software-led Cleantech firms raise greater amounts of finance than hardware-led firms. We provide further evidence of the potential equity gap for long horizon, capital intensive and complex innovative hardware-led Cleantech firms. We recommend the need for government and large corporations to provide long horizon, deep pocket investment to assist Cleantech firms reach commercialization.

Keywords: Equity Financing, Cleantech, Entrepreneurial Finance, Intangible Assets, Patient Capital

Suggested Citation

O'Reilly, Sean and Mac an Bhaird, Ciarán and Owen, Robyn and Lodh, Suman, Born-to-Be-Green: Financing Cleantech Firms in the UK. Available at SSRN: https://ssrn.com/abstract=4205768

Sean O'Reilly (Contact Author)

Technological University Dublin ( email )

School of Languages, Law & Social Scirnces
City-Centre Campus, Grangegorman
Dublin
Ireland
+353 851198563 (Phone)
+353 1 402 3027 (Fax)

HOME PAGE: http://https://www.dit.ie/business/schools/accountingandfinance/contacttheschool/

Ciarán Mac an Bhaird

Dublin City University ( email )

Ireland 9
Dublin 9, leinster 9
Ireland

Robyn Owen

Middlesex University - Centre for Enterprise and Economic Development Research (CEEDR) ( email )

United Kingdom

Suman Lodh

Kingston University London ( email )

Kingston Hill
Kingston Upon Thames
Kingston, Surrey KT2 7LB
United Kingdom

HOME PAGE: http://www.kingston.ac.uk/staff/profile/dr-suman-lodh-1476/

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