Should Capricorn Investment Group invest in Fervo Energy’s Series B venture financing round, balancing the potential of transformative technology and climate impact with the significant regulatory, financial and technical risks?
Should Capricorn Investment Group invest in Fervo Energy’s Series B venture financing round, balancing the potential of transformative technology and climate impact with the significant regulatory, financial and technical risks?
In early 2021, Capricorn Investment Group evaluated a potential venture capital investment in Fervo Energy, a pioneer in enhanced geothermal systems (EGS). This technology promised clean, always-available carbon-free power, to meet the increasing demand for firm renewable energy. However, Fervo has yet to develop a commercial-scale plant, and the technology remains expensive and risky, particularly with regulatory hurdles, limited suppliers and competition from other power generation technologies. In this case study, students learn about the clean tech industry and are tasked with evaluating an early-stage VC investment.
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