SAN FRANCISCO — Silicon Valley venture capitalist John Doerr made his name and fortune with early investments in pioneering tech firms such as Sun Microsystems, Netscape and Google that went from scrappy start-ups to industry leaders.
Now, Doerr and his firm, Kleiner Perkins Caulfield & Byers, are placing big bets on an emerging sector he calls "green technology," which he believes could one day be at least as big as information technology or biotechnology.
Menlo Park-based Kleiner Perkins plans to set aside $100 million of its latest $600-million fund to technologies that help provide cleaner energy, transportation, air and water.
"This field of green tech could be the largest economic opportunity of the 21st century," Doerr said. "There's never been a better time than now to start or accelerate a green-tech venture."
As one of Silicon Valley's most respected investors, Doerr is generating buzz in the venture community with his decision to champion green technology.
"When John Doerr talks, people listen," said Mark Heesen, president of the National Venture Capital Assn. "John appears to have an innate ability to spot trends and execute a business plan that is actually able to take advantage of those trends."
Kleiner Perkins' plan to ramp up investment in green technology is just one sign of the sector's growth. Also known as clean technology, the field addresses water purification, air quality, nanotechnology, alternative fuels, manufacturing, recycling and renewable energy.
North American venture capitalists invested more than $1.6 billion in clean-tech companies last year, a 35% increase over 2004, according to the Cleantech Venture Network.
"It's a strong area for venture capital," said Craig Cuddeback, the network's senior vice president, whose group expects venture capital investment in the sector to double over the next three years. "It's no longer a choice between whether you will be clean or profitable."
As prices of more traditional energy sources continue to rise, the global market for clean energy sources such as biofuels, hydrogen fuel cells and solar and wind energy rose to $40 billion last year and is expected to increase to $167 billion by 2015, Clean Edge Inc., a Bay Area marketing firm, said in a report last month.
