By Isabella Kaminski
Corporate finance advisory firm London Bridge Capital found that solar was the most popular sector for cleantech investment, followed by energy efficiency and onshore wind.
According to the firm’s latest report, Cleantech Market Snapshot, in which 69 investment houses, lawyers and accountants were surveyed, investor confidence in renewable energy is still high; 88% of investors surveyed have recently raised funds, are actively raising funds or are expecting to do so within the next year.
London Bridge Capital expects funds available for investment to increase. Over 70% of investors surveyed said they intended to increase allocations in the cleantech sector.
Government attitudes to renewable energy were seen as the most important investment drivers, particularly Government policy framework (81%) and Government support 73%. But respondents said that increased funding is likely to come from utilities and infrastructure funds, while banks and governments are expected to reduce their investments.
Over half of the investors surveyed said that they were willing to invest in pre-revenue ventures (although the company says this is not consistent with its direct experience) and cleantech investments are generally held significantly longer than in other sectors. According to London Bridge Capital, this is because investors are typically willing to allow the sector to mature.