Clean Technology Venture Investments Down 33%, but Bright Future Expected

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Recent findings by Cleantech Group revealed that venture investments in clean technology were down 33% in 2Q 2011. Compared to the $2.75 billion across 174 deals in the previous 1Q11, global investments in the second quarter produced $1.83 billion across 161 deals. This total for 2Q11 is also down 10% from the $2.03 billion invested one year prior in 2Q10.

cleantech venture investments

Although the numbers for this 2Q11 are lower than previous quarters, the outlook of Sheeraz Haji, CEO of Cleantech Group, remains positive saying that:

“Our global VC numbers point to continued strength in energy efficiency, which tops the charts in both amount invested and deal count…the IPO window remains open, and the pipeline of companies preparing public offerings continues to build. In this climate, investors are favoring later-stage investments.”

The IPO market continued to show strength in 2Q11 with 11 clean technology IPOs totaling $1.99 billion. Six of these IPOs came from China where biofuels, the third leading technology sector for 2Q11, continue on an upward trend. The largest transaction of the technology sectors in 2Q11 was energy efficiency followed by solar energy.

Cleantech investment by technology sector

North American companies raised $1.42 billion in 2Q11 with 43% invested by California, 13% invested by Massachusetts and 8% contributed by Texas. Although North America accounted for 77% of venture investments in 2Q11, they were down 37% from 1Q11 while European and Israeli companies were up 58% from the previous quarter with $312 million raised.

Cleantech investment by region

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