Wall Street analysis firm R.W. Baird has some words of advice for investors and entrepreneurs in the cleantech sector in a new report:

Don’t get your hopes too high for an exit through an IPO.

Here’s part of the executive summary from the report:

“In general, cleantech is “growing up” with more exits and later stage investments in the companies that have survived and thrived despite very difficult financial and end market conditions.

“However, that isn’t to say that there isn’t still plenty of innovation, because there is – perhaps stronger than ever. As entrepreneurs and investors get smarter on market needs, viable technologies and sustainable (capital efficient) business models – more innovative ideas get funded. This fact is supported by the number of investments going to seed and Series A investments.

“While the public markets are going to play an important role for select cleantech companies, we believe the vast majority of companies will find exits through acquisition. One of the areas that is actively consolidating is energy efficiency, in particular companies in and around the smart grid.”

Fore the complete report, read here.

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