Finance & Investment

You can't see me but I am wearing a pointy hat, carrying a wand and peering into a crystal ball. Yes folks I am going to make a prediction.

Remember the dot.com bubble? Well here is the next one; the "clean tech" bubble. Consumers are going green - and as Kermit so famously said, "It's not easy being green."

Venture capitalists are pouring cash into environmentally friendly technology. This is a reflection of the hype around smart cars, green buildings, and technologies that use the sun, wind, corn and water to generate power. Combine this with pricier oil and worries about global warming have spurred the search for alternative technologies.

The problem is that there are too many dollars chasing too few deals; one partner at an energy technology venture capital firm said "we are certainly seeing some evidence of overheating...in solar and bio fuels. But it's too early to tell..." In fact over 60% of venture capitalists claim the sector is overvalued but, of course, remain convinced of the sector's long term value. So watch this space - I'll keep you informed.

For more on bubbles read Money, Money, Money Ain't it Funny.