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VC investment in RE reaches US$2.5bn in Q4

Fourth quarter data from Greentech Media show that venture capital (VC) investment in green technologies exceeded US$2.5 billion in the fourth quarter of 2008, down 1.4% from Q3.

 

“Greentech VC investors remain optimistic on this sector and still have faith in the VC model.  Investors continue to fund early stage deals as well as later stage deals,” says Eric  Wesoff, Senior Analyst at Greentech Media.

“VCs are now digging deep in the greentech sector and looking outside traditional technologies at previously underinvested areas like energy storage, energy efficiency, recycling, water, cleaner coal and green IT,” he adds.

Solar technology once again led the VC charge this quarter with more than US$1.3bn invested in 29 venture capital rounds.

Other renewable energy sectors, such as wind, smart grid and energy storage continue to receive record amounts of funding. Venture firms invested heavily in biofuels such as cellulosic ethanol and algae with more than US$350 million directed towards these new feedstocks and technologies.

Full year 2008

"VC investment in green energy technologies in 2008 exceeded US$7.7bn in more than 350 deals – more than double last year’s dollar totals. We anticipate a slowing in the dollar amount but look for an increase in number of deals as investors back off from building solar and biofuel factories and look for more capital-efficient technologies and firms,” Wesoff adds.

Q4 VC investment by sector:

 
Greentech Sector
Total Q4 VC Funding in US$
Number of Deals
Solar
1,335.9m+
29
Ethanol, Biofuels, Gasification
358.55m
18
Wind
218m+
5
EE, DR and Smart Grid
208.5m
11
Batteries, FCs, Energy Storage
101.55m
14
Energy Project Development
96m
2
E-Waste and Recycling
74.8m
7
Green IT
37.3m+
7
Automotive and transportation
29.03m
4
Green Agriculture
25m
2
Lighting
23.9m+
7
New Coal Tech
9m+
2
Misc. Greentech
8.6m
2
Green Buildings
4.0m
1
Geothermal
3.5m
1
Environmental Technology
3.9m
2
Water
1.5m
1
Q4 VC Totals
2540m
115
Source: Greentech Media

 

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Bioenergy  •  Energy efficiency  •  Energy infrastructure  •  Energy storage including Fuel cells  •  Geothermal  •  Green building  •  Other marine energy and hydropower  •  Photovoltaics (PV)  •  Policy, investment and markets  •  Solar electricity  •  Solar heating and cooling  •  Wave and tidal energy  •  Wind power

 

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