Discussions on the mortgage crisis, grime economic news and the continuous mention of the “r” word (recession) by the media may leave entrepreneurs believing financing for businesses has dried up.

Not so says the New York Times Business Section. A recent investment conference in Southern California attended by 1,000 investors demonstrates that investment money is readily available, especially for clean energy, environmental, communications, water treatment and biomedical companies. Of the 330 companies represented, 50 came from China.

Plenty of Venture Capital

Less competition encourages investors who seek small, dynamically growing companies hidden from the broader investment market. James W. Montgomery, Chairman of Montgomery & Company, saw the same enthusiasm at a technology conference held by his firm in Santa Monica, CA. Montgomery said “There is plenty of capital around because venture capital hasn’t been in the bubble mode in recent years like real estate and debt markets.” Montgomery also mentions that companies providing entertainment and services for cell phones do well right now because the communications industry is hot.

Venture Capitalists are not throwing money around by any means. Many still remember the years of the Dot Com Boom and the resulting bust that left venture capitalists holding the bag. But companies with reasonable valuations with the potential for a nice return in two to three years find small amounts of capital for investment. Internet start-ups usually fall within this category because they don’t require expensive plants and equipment.

Green is the “In” Color

“Green” companies such as those that convert contaminated water into drinkable water, solar energy companies also attract investment funding. Investors aren’t just oriented on California, even Chinese companies in the technology field find US capital. Those getting the nod from investors include everything from steel finishing products for appliances to lithium-ion batteries.

Investors also look to acquire operating companies with great earning potential. Large companies expend millions researching companies to acquire and operate. With the down turn in private equity funds who often bid prices up on their reign of buying everything in sight, other investors believe prices have become more reasonable.