Hydropower, Solar

Venture Investment in Clean Technologies Reaches US$1.1 billion

Just under US$1.1 billion was invested in 179 emerging clean technology companies in 2002, according to the most recent issue of the CLEANTECH Venture Monitor released Friday. At 5.1 percent of overall venture capital activity last year, about 1 in every 20 deals was in the clean technology space, from solar energy to water purification, according to the report.

Ann Arbor, Michigan – March 21, 2003 [SolarAccess.com] Clean technology is now the sixth largest venture category. Highlights of 2002 include: – Clean energy ventures received the most dollars at US$494 million, or 45 percent, but received only 33 percent in the fourth quarter with clean industrial technology companies accounting for the remaining investment. – Average deal size declined from US$8.1 million in the first quarter to US$4.1 million in the final quarter, as investors moved from follow-on financings to backing startups, consistent with venture capital activity in other sectors. – West coast companies received the most funding at 23 percent with the northeast a close second at 22.1 percent, with a strong fourth quarter showing of 37.6 percent. Canadian companies secured 14 percent of total funding. – Most active investor, by number of deals, was Hydro Quebec Capitech, the venture capital arm of the Montreal-based utility. Only one of the top ten investors is based on the west coast. – Six of the top ten deals occurred in the second quarter. Advanced Disposal Services was the year’s biggest deal at US$52.9 million. VeraSun Energy was the largest deal in the fourth quarter at US$17.3 million. “2002 was a success for the clean technology venture community,” said Nicholas Parker, Cleantech Venture Network chairman. “More and more new investors are doing clean technology deals, giving entrepreneurs greater access to capital. The range of deals completed shows the potential for clean technology to positively impact virtually every industrial and infrastructure-related sector.” The next Cleantech Venture Forum will be held in San Francisco from April 30 to May 1, 2003. Nearly 200 companies have expressed interest in presenting. Leading professional investors registered to attend include Kleiner Perkins Caufield & Byers, 3i, Advent International, Draper Fisher Jurvetson, Nth Power, and Technology Partners, as well as top corporate backed venture capitalists in the clean technology space such as Eastman Ventures, Hydro Quebec Capitech, RWE, Chrysalix and OPG Ventures. Publicly launched in July 2002, the Cleantech Venture Network is a market facilitation service providing venture forums, investment reports, online services to investors and companies.