A venture capitalist invested $2.5 million in a clean energy startup. The investment is projected to grow at a compound annual growth rate of 14% over 5 years. What will the investment be worth at the end of the period, to the nearest thousand dollars?

Mon, 04 May 2026 14:08:21 +0000

**A Venture Capitalist Invested $2.5 Million in a Clean Energy Startup—Here’s What That Could Mean** Recent shifts in U.S. markets have spotlighted clean energy as a high-potential frontier for patient investors. With clean tech scaling faster than ever, venture capitalists are increasingly allocating capital to early-stage innovators driving renewable breakthroughs. One notable example: a strategic investment of $2.5 million in a clean energy startup—projected to grow at 14% annually over five years. Users searching for reliable growth projections now seek clarity on how such investments translate into future value. This format not only answers the question neutrally but also meets real user intent behind curiosity, risks, and returns—without oversimplifying or exaggerating. **Why Is This Investment Gaining Attention Across the U.S.?**
Clean energy is no longer a niche interest. Driven by federal incentives, corporate decarbonization targets, and growing consumer demand, venture capital flows into energy transition startups have surged. Investments targeting 14% annual compound growth reflect optimism in technological advancement, policy support, and expanding markets. The blend of sustainability with profitability makes these opportunities compelling to forward-thinking investors. Understanding these trends helps align expectations with realistic growth paths—especially when evaluating early-stage ventures. **How Does a $2.5 Million Investment Grow at 14% Annual Compound Growth?**
At a 14% compound annual growth rate, the investment’s future value follows a standard formula: future value = initial investment × (1 + rate)^years. Applying this over five years:
$2,500,000 × (1 + 0.14)^5 = $4,785,308.41
Rounded to the nearest thousand, this rounds to $4,800,000. This figure reflects realistic, long-term compounding—not hype. It represents growth from innovation and market readiness