Venture capital investment in cleantech totals $1.2bn in second quarter of 2009

1 July 2009

Venture capital investment in cleantech totaled $1.2bn in 85 deals in the second quarter of 2009, up from $836m in 59 deals in the first quarter of 2009, according to a new report.

‘The recent quarter’s balanced distribution of sectors that attracted capital underscores cleantech’s breadth and diversity of opportunity, one of the key drivers behind why cleantech remains an enduring area,’ said Ira Ehrenpreis, general partner, Technology Partners.

Solar power was once again the leading investment segment at more than $330m. Unlike previous quarters – the second quarter saw a much more balanced distribution across the various sectors with a marked increase in automotive (more than $202m) and energy storage (more than $180m), acording to the report.

One of the drivers for steady second quarter venture investment was the promise of stimulus monies offering startup investors a non-dilutive funding source.

Meanwhile, early-stage and late-stage investments dominated, while mid-stage funding was harder to come by, and the average round sizes were slightly smaller. There were no giant $100m-plus solar or biofuel rounds as in 2008.

‘Despite the economic slump, VC investors remain optimistic about the greentech sector and eventual exits in this space,’ said Eric Wesoff, senior analyst at GTM Research and author of the report.

John Rockwell, founder and managing director of Element Partners added, ‘The growing belief that credit markets and the economy are on the road to recovery has investors back in the market. Greentech markets are massive and diverse and investors are starting to pour additional money into the next wave of greentech opportunities.’

‘2009 will be a year of consolidation and development while 2010 and 2011 will be the year greentech breaks. Expect to see IPOs and acquisitions of VC funded firms in solar, smart grid, green buildings and biofuels,’ Wesoff added.

Copyright © 2009 NewNet

Tags: automotive, cleantech, energy storage, venture capital

This story was published on Wednesday, July 1st, 2009 at 10:03 am and is filed under North America, deals. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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