A123 Systems Inc, a lithium-ion battery supplier, filed to go public on Nasdaq last Friday. Up until now, A123 Systems has relied on venture capital — the company has raised approximately $266.1 million.

The paperwork A123 Systems submitted showcases the company as a solid clean tech investment. It expects that transportation industry to be its biggest market, setting the current market at $700 million and estimating that a growth spurt in the market will raise that figure to $5 billion by 2012. A123 is also developing battery systems capable of improving the electric power grid — currently a $2.4 billion market, which could read $3.1 billion in the next seven years. Finally, consider A123 System's current moneymaker: batteries for power tools and other portable devices. The company sets the current power tool market at $411 million and estimates it will grow to $1.1 billion.

A123 Systems is looking at big opportunities, provided that it can develop its products faster than competitors. There is one problem that the battery developer faces, however, and it's a problem that many clean tech companies looking to go public will also face. A123 Systems is operating at a loss.

The company's filings show that in the first three months of 2008, A123 Systems registered a net loss of $13.9 million. A123 Systems expects to see losses continue in 2008 and 2009. Those numbers could easily scare off potential investors, despite the impressive venture capital A123 Systems has raised.

The list of investors who have provided that venture capital is impressive, however, and may shore up A123 Systems against a poor opening. They include General Electric, Motorola Corp., Qualcomm Inc., Procter & Gamble and a number of other big names. Details of the opening, such as the number of shares offered and estimated price range for the IPO, have not yet been disclosed. It is expected, though, that some of the shares will be sold by selling holders. Morgan Stanley & Co. Incorporated and Goldman Sachs & Co. will act as joint book-running managers of A123 Systems' offering.

Market analysts haven't made up their minds about A123 Systems' future. Some are making dire predictions on the basis of the company's continuing losses. Others have only positive responses based on the many opportunities in front of the company. But everyone will continue to watch A123 Systems closely; its opening will be the baseline for other venture-backed clean tech companies planning to go public.