Green technology start-ups got a major boost yesterday with the launch of GREENDAQ, the world’s first equity and commodities exchange for the green tech sector. The private exchange will feature five companies in the next 2 months and 20 companies in a year’s time. First up: Carbon Credited Farming Plc., a British producer of jatropha-based biofuels.
GREENDAQ will debut what it calls “new classes of commodities”, including green oil, green energy, green carbon, and green lumber. The minimum investment for equity offerings will be $100,000. GREENDAQ hopes to have 10,000 investors registered for the exchange by the end of its first year.
GREENDAQ is just the latest in a series of boosts for clean technology start-ups. President Obama recently announced plans to invest $150 billion in green energy projects, and the United Nations Environmental Program (UNEP) is working on a $750 billion initiative for global green investments.
But GREENDAQ provides start-ups a way to get funding without asking for government hand-outs. Investors who might otherwise be wary of investing in certain companies can trade shares on the GREENDAQ, allowing for liquidity. In other words, the GREENDAQ gives promising, below-the-radar companies their chance in the sun. Sounds like an encouraging development for an industry that is expected to grow 4000% by 2030.