Companies presenting at the Clean Energy Venture Summit typically have been realistic about the route to liquidity for their investors. As it is across most tech sectors, M&A is the most likely exit. For startups that combine information and energy technologies, the action is picking up.

Oracle Corp. last month announced plans to acquire Lodestar Corp., which makes software for the utility industry. Other big IT players like IBM Corp. are already selling products into this segment. Many of the presenting firms cited IBM and Cisco Systems Inc. as potential buyers.

For startups that make communications products for the utility grid, network gearmakers or systems integrators could be potential buyers. That's a good thing, as many of the big energy and oil companies tend to shy away from technology acquisitions. In fact, one VC said his firm has hesitated in backing some of these companies because of the dearth of acquirers outside of the technology arena.

Others were more sanguine about exits—at least for certain sectors. CMEA Ventures partner Maurice Gunderson said solar companies tend to be strong IPO candidates. However, he added, these companies need to focus on a new idea, not just making photovoltaic cells that are dependent on subsidies to reach a price comparable to coal-fired electric power.

Many noted that some oil giants have invested in the clean energy sector, but as Clint Bybee, a partner with Arch Venture Partners, said, clean energy is hardly a big issue for most traditional energy companies.

"It is a speck of dust on the rear end of a gnat on the back of an elephant," Bybee said. —Stacey Higginbotham

See April 5 story from Tech Confidential