A venture capitalist invested $2 million in a clean tech startup that promises a compound annual growth rate of 18%. What will the investment be worth after 5 years? Round to the nearest thousand.

Wed, 06 May 2026 05:31:16 +0000

**1. Why Clean Tech Investment Growth Captivates Investors Now**
In the evolving landscape of innovation, clean tech has emerged as a pivotal sector, drawing increasing attention from investors seeking both financial return and environmental impact. With global momentum toward sustainable energy and decarbonization, venture capital is flowing into startups driving breakthrough clean technologies—from advanced battery storage to carbon capture and next-generation solar solutions. A recent commitment of $2 million into an early-stage clean tech company reflects this surge, fueled by strong sector growth, policy support, and rising demand for scalable climate solutions. Understanding how such investments compound over time reveals compelling financial potential—especially when growth rates hover near 18% annually. This level of consistent growth makes the investment’s trajectory not just meaningful, but a compelling case study in long-term wealth building. **2. The Rising Interest in Sustainable Innovation**
The decision to invest $2 million signals confidence in clean tech’s ability to deliver measurable returns amid pressing climate challenges. U.S.-based startups in this space are increasingly backed by institutional investors prioritizing ESG (environmental, social, governance) criteria alongside solid financial performance. This shift is amplified by federal incentives under the Inflation Reduction Act, accelerating funding availability and market validation. The blend of environmental necessity and scalable technology explains why such substantial commitments are gaining momentum—creating a compelling environment where high-growth expectations, like 18% annual compound growth, find real-world backing.