According to data released by Thomson Financial and the National Venture Capital Association (NVCA), United States venture capital firms have invested a record annual amount in “cleantech” in 2007. Through September 30, 2007, the amount invested was $2.6 billion, which exceeded the previous annual record of $1.8 billion, which was for the total year of 2006. Note that this 2007 figure includes three large deals totaling approximately $818 million.
The following chart illustrates the trend in cleantech investing by U.S. venture capital firms:
In commenting on cleantech investment, NVCA president Mark Heesen, said:
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. 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.
Some highlights of 2007 cleantech venture investing are listed below. Please refer to the announcement from Thomson Financial and the National Venture Capital Association for additional information.
1.) TOP CLEANTECH VC FIRMS
(Q1-Q3 2007, based on number of deals)
Source: Thomson Financial/NVCA
- Khosla Ventures – 14 deals, valued at $68.4 million
- Draper Fisher Jurvetson – 14 deals, valued at $38.5 million
- Kleiner Perkins Caufield & Byers – 11 deals, valued at $76.8 million
2.) CLEANTECH VENTURE INVESTMENT – BY CATEGORY
(Q1-Q3 2007)
Source: Thomson Financial/NVCA
- Solar-Related Energy – $664.6 Million (35 deals)
- Alternative Energy, including Nuclear (excluding wind, solar, geothermal, co-generation) – $317.5 Million (33 deals)
- Power Supplies – $183.9 Million (25 deals)
- Pollution and Recycling – $146.4 Million (19 deals)
- Wind Energy – $62.9 Million (4 deals)