Cleantech VC Investment Down 63%

May 11, 2009

Email this story Print this post Add your comments

Feeling the pinch of the global economic turndown, U.S. cleantech companies saw venture capital investment of $277 million for the first quarter of 2009, a drop of 63 percent when compared to the same period in 2008, according to research from Ernst & Young.

VC funding for all industries hit an 11-year low in the first quarter, dropping 50 percent, according to WSJ.com. In that period, VC funding totaled $3.9 billion in the U.S. down from $7.78 billion in the first quarter of 2008.

The decrease in overall funding for cleantech was less than the decline in the number of cleantech VC deals. Compared to the first quarter of 2008, there were 48 percent fewer cleantech VC deals in the same period of 2009.

Still, recent announcements of government initiatives and corporate commitments are “points of light” for cleantech firms, said Joseph A. Muscat, Americas Director of Cleantech, Ernst & Young, in a press release.

Here’s how certain cleantech segments fared.

Energy storage received $114 million in Q1 2009, up 128 percent from Q1 2008.
Battery storage received $69 million, up 37 percent.
Energy/electricity generation received $56 million, down 73 percent.
Fuel cell companies received $45 million, up from practically nothing in Q1 2008.

The report notes that while venture capital funding is slowing down, government and corporate partnerships are injecting funds into the marketplace.

For example, the report cited AT&T’s commitment to invest $565 million over 10 years on electric vehicles for its corporate fleet.

And President Obama’s recent budget proposal contains billions for cleantech.

At least one cleantech company is having luck raising money through the stock markets. Danish wind firm Vestas raised more than $1 billion in a recent public offering of 18.5 million shares, Businessweek reports.

Email this story Print this post Add your comments

Advertisers

Stay competitive through sustainability.

Find out how at the SAP Sustainability Resource Center. >>

Unclear about the EPA's new GHG Rule?

Learn how it could affect your business. >>

EPA mandatory emissions reporting starts Jan 1st

CSA Standards can help your organization get ready for compliance. Find out how. >>

Best Practices: Product Environmental Compliance

How to achieve compliance at a significantly lower cost. Download the full report. >>

Join the Discussion

Recent Daily News [ see all ]

11/20/2009
11/19/2009
11/18/2009

Charts [ see all ]

European Paper Industry Cuts CO2 Emissions by 42% since 1990

S. America Takes Most Urgent View of Copenhagen Talks

Nike Tops Annual Climate Action Scores

Oceans May Trap more Carbon than Forests

Jobs

View All Jobs >> Post a Job >>

Comments and Discussions

Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."

Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."

peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."

Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."

Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."

Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."

peter dublin on California City’s Green Building Ordinance Applies to Commercial Buildings
"Why energy efficiebnt regulation on buildings –..."

Environmental Leader