Dow Jones Figures Put U.S. Cleantech VC Investing Up 46% in Q3

Nov 2 2009 | 9:27am ET

U.S. venture capital investment in cleantech companies in Q3 2009 increased 46% quarter on quarter to $965 million in 50 financing rounds, according to an Ernst & Young LLP analysis based on data from Dow Jones VentureSource. 

This is the second consecutive quarter of growth in 2009 and the fifth-largest quarterly investment total on record. Compared to Q109, quarterly investment is up 182% in terms of capital and doubled in terms of financing rounds.

The bulk of the investment (61%) in Q309 went to companies already shipping products. In the first nine months of 2009, 62% of capital invested went to companies shipping products compared to 37% during the same period in 2008.

Of the top 10 VC-led deals in Q309, four involved private equity investors, three included corporate investors and one involved a sovereign wealth fund.

“Continuing growth in cleantech investment in the third quarter reflects investor confidence in the commercialization of clean technologies,” said Joseph A. Muscat, Ernst & Young LLP, Americas director of cleantech. “The diversity in this quarter’s investment activity, in terms of the technologies receiving investment and the participating investors, illustrate the potential to create value through the development of a low-carbon economy.”

The energy/electricity generation category received the largest chunk of the Q309 investment (33%) at $316 million. Solar technologies attracted $309 million, up 115% quarter on quarter, and spread across five deals, the largest of which – Solyndra’s – was worth $198 million.

Industry-specific products and services for cleantech generated strong VC interest in Q309 with $289 million invested, a 57% increase from the previous quarter. This increase was driven by deal activity in the construction, materials and transportation segments. The $83 million investment in Tesla Motors by Aabar Investments, Daimler AG and Fjord Ventures was the largest investment in this category.

Environmental products and services came third, attracting investment of $120 million in Q309, the result of two deals: a $100 million investment in WastePro and a $20 million investment in Liquid Environmental Solutions.

Alternative fuels attracted $71 million in Q309, up 58% quarter on quarter and consisting entirely of biofuels deals.

The Dow Jones figures also showed that the U.S. government’s economic stimulus package and programs designed specifically to promote cleantech development were being felt in the cleantech sector in the third quarter.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.