[Posted on April 9, 2008 - 5:01 PM]
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DiggAlthough venture capital investments and tech industry deal exits are drying up amid a global economic slowdown, money continues to pour into renewable energy, according to a new tally of first-quarter VC investment in the sector by market research firm The Cleantech Group,
Deals in North America, Europe and Israel were valued at $1.25 billion for the quarter, representing a 42% jump from the year-ago period. There were 79 cleantech transactions in the quarter, averaging $15.8 million per round, with average deal size up 53% from last year.
Still, that streak is likely coming to an end. Investment fell from the previous quarter for the second consecutive quarter from the record third quarter last year. The Cleantech Group points to those results in suggesting that ethanol, wind power and thin-film solar development have peaked as areas of venture investment, with more traditional early-stage technology continuing to draw investment. Still, figures are skewed in favor of those declining sectors by a few large deals, including Range Fuels Inc.'s $100 million (plus) round for cellulosic ethanol and Suniva Inc.'s $50 million round for solar cell production.
Khosla Ventures led all investors in the sector, investing $205 million in nine deals in the quarter, with New Enterprise Associates trailing with $84 million in four deals and Kleiner Perkins Caufield & Byers coming in at $80 million, also in four deals.
The bulk of global cleantech venture investment landed in North America, with $873 million invested in 50 companies. Investment in the region grew 35% over the first quarter of last year, though it mirrored the overall decline over the last two quarters. -- Clifford Carlsen
See April 2 VCRatings post
See Feb. 5 story from TechConfidential
