California, United States [RenewableEnergyWorld.com] Topline Strategy Group has released the results of its “Follow the Money” analysis on Q4 Venture Capital (VC) investment in cleantech. The result, according to Topline was that VC investment in cleantech and renewable energy in particular was lower than it had been in previous quarters.
After the growth in cleantech investing in Q3 2007, Q4 was a let down, according to Topline. Total Cleantech deals during the quarter fell from 55 to 47 and the amount received by companies plummeted from US $736 million to just US $421 million.
Why the fall off? On the whole, the primary reason seems to be a slowdown in investment from Silicon Valley. In Q3, Topline reported that cleantech investing had soared. This was largely the result of tremendous growth in Silicon Valley. Not only was the region an engine for Cleantech investment, receiving 37.7% of total cleantech dollars, but the Silicon Valley VCs, noticeably underrepresented in previous reports, led the way. Q4 saw a pullback in many of those trends. The large Silicon Valley VCs invested less money in fewer deals and the region attracted far fewer dollars, according to the report.