CleanTech Venture Investments by US Firms Break Record in 2007
November 28 2007 - 8:00AM
PR Newswire (US)
NVCA President Advises Caution for Venture Investors NEW YORK, Nov.
28 /PRNewswire-FirstCall/ -- CleanTech investments by US venture
capital firms reached $2.6 billion from 168 deals in the first
three quarters of 2007, according to data from Thomson Financial
and the National Venture Capital Association. This level of
investment represents the highest dollar volume ever, exceeding
full-year 2006 investment dollar volume which reached $1.8 billion
from 180 deals. Several large investments in companies outside of
the US contributed significantly to these levels. US firms'
investment in CleanTech companies has progressively increased year
over year. The year to date 2007 dollar volume represents a 46%
increase over full year 2006 dollar volume. Additionally, 2007 deal
totals for the first 9 months lag last year's total record breaking
number by only 12 deals. Annual Clean Tech Investments Volume
Analysis Investment Year Deals ($mil) 2000 63 590.1 2001 85 392.8
2002 91 454.9 2003 81 235.4 2004 88 507.7 2005 100 532.7 2006 180
1,779.6 2007* 168 2,604.9 *2007 data through 9/30/2007 Source:
Thomson Financial/NVCA NVCA president, Mark Heesen expressed a
cautious optimism regarding the CleanTech space: "There are major
opportunities for venture capitalists to totally reshape the energy
market throughout the world as governments, consumers, and
companies are demanding innovation in this space," said Heesen.
"However, as has been demonstrated in the IT and life science
arenas, investing in new technologies can be fraught with pitfalls
and is not for the inexperienced or the faint of heart. Prudent,
long-term, knowledge-based investment in cutting edge technologies
has been the hallmark of venture capital in the past and should be
the mantra in the CleanTech space as well. Short-term 'tourists'
should steer clear." The majority of all dollars invested by US
firms went into US companies in the first nine months of 2007. In
total there were 149 investments worth $1.7 billion in US
companies, representing an average deal size of $11.4 million. The
three largest CleanTech investments by US firms in 2007 were in
overseas companies including a $500 million investment by two
undisclosed firms in Delta Hydrocarbon BV, a Netherlands based
company with a focus in oilfield- production enhancement, a $200
million investment in Brazil's Brazilian Renewable Energy Co., and
a $118 million investment in China's Yingli Green Energy Holding
Company, producer of vertically integrated photovoltaic solar
products. US Firm CleanTech Investments by Company Location (1Q-3Q
2007) Average Investment Investment Company Nation Deals ($mil)
($mil) United States 149 1,692.6 11.4 Netherlands 1 500.0 500.0
Brazil 1 200.0 200.0 China 1 118.0 118.0 India 2 34.5 17.3 United
Kingdom 4 31.0 7.7 Canada 3 10.9 3.6 Germany 4 6.9 1.7 Austria 1
5.8 5.8 Israel 1 4.8 4.8 Mauritius 1 0.4 0.4 Total 168 2,604.9 15.5
Source: Thomson Financial/NVCA Within the United States, the
majority of US CleanTech investment dollars and deals flowed into
California where 68 deals accounted for $726.2 million investment
dollars. Massachusetts companies had the next highest level of
investment with $292.6 million from 11 deals. Texas closed out the
top three states with $149.4 million investment dollars from 8
deals. US Firm CleanTech Investments by State (1Q-3Q 2007) Average
Investment Investment Company State Deals ($mil) ($mil) California
68 726.2 10.7 Massachusetts 11 292.6 26.6 Texas 8 149.4 18.7
Washington 10 121.3 12.1 New Mexico 4 96.0 24.0 Georgia 4 49.1 12.3
Kentucky 1 37.6 37.6 Colorado 2 32.3 16.1 D. of Columbia 1 32.0
32.0 Iowa 3 28.0 9.3 US Total 149 1,692.6 11.4 Source: Thomson
Financial/NVCA Solar energy was the biggest sub-sector for
CleanTech investments in the first nine months of 2007. There were
35 solar related deals accounting for $664.6 million in investment
dollars and an average deal size of $19.0 million. Alternative
energy (excluding wind, solar, geothermal, and co- generation)
accounted for 33 deals and $317.5 million, followed by power
supplies industries with 25 deals accounting for $183.9 million. US
Firm CleanTech Investments by Industry (1Q-3Q 2007) Average
Investment Investment Industry Deals ($mil) ($mil) Solar Related
Energy 35 664.6 19.0 Alternative Energy, incl. Nuclear (excl. wind,
solar, geothermal, co-generation) 33 317.5 9.6 Power Supplies 25
183.9 7.4 Pollution and Recycling Related 19 146.4 7.7 Wind Energy
4 62.9 15.7 Source: Thomson Financial/NVCA The largest investment
made in a domestic company by a domestic firm in the first nine
months of 2007 was the $115 million invested in Greenpoint Energy
Inc, a Cambridge, MA based company, across two investment rounds.
Greenpoint operates production plants that convert coal and biomass
into a product called bluegas, which aids in the power generation,
industrial, heating, and chemical sectors. Investors in this
company in the first three quarters of 2007 include Kleiner Perkins
Caufield & Byers, Draper Fisher Jurvetson, Dow Chemical
Company, Advanced Technology Ventures, Khosla Ventures, and other
undisclosed investors. The next largest investment in a CleanTech
company was a $77 million investment round in Austin, TX based
Heliovolt Corp. Heliovolt develops and markets technology for
depositing thin photovoltaic platform surfaces used to generate
electricity from sunlight on conventional construction materials.
Venture investors in the company included Morgan Stanley Private
Equity, Yellowstone Capital, Paladin Capital Management, New
Enterprise Associates, and additional undisclosed investors. The
top US firms in terms of number of deals from January through
September of 2007 were Khosla Ventures, participating in 14 deals
valued at $68.4 million, Draper Fisher Jurvetson, investing in 14
deals valued at $38.5 million, and Kleiner Perkins Caufield &
Byers, with 11 deals valued at $76.8 million. All three firms are
headquartered in Menlo Park, CA. The National Venture Capital
Association (NVCA) represents approximately 480 venture capital and
private equity firms. NVCA's mission is to foster greater
understanding of the importance of venture capital to the U.S.
economy, and support entrepreneurial activity and innovation.
According to a 2007 Global Insight study, venture-backed companies
accounted for 10.4 million jobs and $2.3 trillion in revenue in the
U.S. in 2006. The NVCA represents the public policy interests of
the venture capital community, strives to maintain high
professional standards, provides reliable industry data, sponsors
professional development, and facilitates interaction among its
members. For more information about the NVCA, please visit
http://www.nvca.org/. Thomson Financial, with 2006 revenues of US$2
billion, is a provider of information and technology solutions to
the worldwide financial community. Through the widest range of
products and services in the industry, Thomson Financial helps
clients in more than 70 countries make better decisions, be more
productive and achieve superior results. Thomson Financial is part
of The Thomson Corporation (http://www.thomson.com/), a global
leader in providing essential electronic workflow solutions to
business and professional customers. With operational headquarters
in Stamford, Conn., Thomson provides value-added information,
software tools and applications to professionals in the fields of
law, tax, accounting, financial services, scientific research and
healthcare. The Corporation's common shares are listed on the New
York and Toronto stock exchanges (NYSE: TOC; TSX: TOC). DATASOURCE:
Thomson Financial; National Venture Capital Association CONTACT:
Emily Mendell, NVCA, +1-610-565-3904, ; Matthew Toole,
+1-646-822-7560, , or Sandy Anglin, +1-646-822-7334, , both of
Thomson Financial Web site: http://www.thomsonfinancial.com/
http://www.nvca.org/
Copyright