Green Technology Forum

CleanTech investments by US venture capital firms reached $2.6 billion from 168 deals in the first three quarters of 2007, according to data from Thomson Financial and the National Venture Capital Association. This level of investment represents the highest dollar volume ever, exceeding full-year 2006 investment dollar volume which reached $1.8 billion from 180 deals. Several large investments in companies outside of the US contributed significantly to these levels.

US firms’ investment in CleanTech companies has progressively increased year over year. The year to date 2007 dollar volume represents a 46% increase over full year 2006 dollar volume. Additionally, 2007 deal totals for the first 9 months lag last year’s total record breaking number by only 12 deals.

NVCA president, Mark Heesen expressed a cautious optimism regarding the CleanTech space:

“There are major opportunities for venture capitalists to totally reshape the energy market throughout the world as governments, consumers, and companies are demanding innovation in this space,” said Heesen.

“However, as has been demonstrated in the IT and life science arenas, investing in new technologies can be fraught with pitfalls and is not for the inexperienced or the faint of heart. Prudent, long-term, knowledge-based investment in cutting edge technologies has been the hallmark of venture capital in the past and should be the mantra in the CleanTech space as well. Short-term ‘tourists’ should steer clear.”

The majority of all dollars invested by US firms went into US companies in the first nine months of 2007. In total there were 149 investments worth $1.7 billion in US companies, representing an average deal size of $11.4 million. The three largest CleanTech investments by US firms in 2007 were in overseas companies including a $500 million investment by two undisclosed firms in Delta Hydrocarbon BV, a Netherlands based company with a focus in oilfield- production enhancement, a $200 million investment in Brazil’s Brazilian Renewable Energy Co., and a $118 million investment in China’s Yingli Green Energy Holding Company, producer of vertically integrated photovoltaic solar products.

Within the United States, the majority of US CleanTech investment dollars and deals flowed into California where 68 deals accounted for $726.2 million investment dollars. Massachusetts companies had the next highest level of investment with $292.6 million from 11 deals. Texas closed out the top three states with $149.4 million investment dollars from 8 deals.

source: National Venture Capital Association

This entry was posted on Wednesday, December 5th, 2007 at 5:12 am and is filed under Investment, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.