More and more entrepreneurs are looking to raise early stage financing for green energy projects. However, many of these companies are being forced to turn to crowdfunding because they have not been able to access more traditional sources of finance. 

A successful crowdfunding round can be a great proof of concept that gives later stage investors comfort. However, failing to invest at an early stage may be a missed opportunity for more traditional venture capital funds. 

If they are to compete and remain relevant, it is important for venture capital funds to understand the unique dynamics of an impact focused business. Equally, impact entrepreneurs should remain open to more traditional financing rounds, provided that they can articulate the ESG specific protections they require. Both parties should ensure they obtain the appropriate advice to bridge this gap.

Venture capital funds remain a great source of potential financing to address some of the world's most pressing environmental issues.