Thursday, July 30, 2009

U.S. Alternative Energy Investments

Rise In U.S. 2Q Cleantech Investment Bodes Well For 3Q

By Mara Lemos-Stein
After an anemic first quarter, venture capital investments in clean technology rose 73% in the second quarter to a total of $572.1 million, suggesting there is momentum for an industry expected to gain steam from government stimulus funding.

The number of deals in the quarter doubled from the first quarter to 48, according to data from Dow Jones VentureSource, which like VentureWire and The Wall Street Journal is owned by Dow Jones & Co. The latest figures are still below the $1.41 billion spread across 57 deals in last year’s second quarter.

During the second quarter, the largest amount of investors’ money - at $157 million - went into energy and electricity generation, which includes solar, geothermal, wind and hydro power, compared with $56 million in the first quarter.

The lion’s share of the total investment in renewable power generation, or $148.2 million, went into solar deals. One of the largest deals in solar during the second quarter was a $25 million Series A round by Mountain View, Calif.-based Skyline Solar Inc., led by New Enterprise Associates.

Behind generation, the largest flow of money went into energy efficiency, pulling in $151.5 million from venture capitalists to fund companies in power and efficiency management services, smart-grid technology, and other energy efficiency technologies. In the first quarter, VC investments in this sector totaled $56.5 million. One of the largest deals here was the $30 million Series C round led by VantagePoint Venture Partners raised by Boulder, Colo.-based Tendril Networks Inc., a developer of software and hardware technology that enables communication between utilities and their customers.

Complete article: The Wall Street Journal


Anonymous said...

How many of these deals are predicated on stimulus spending?

Richard Wottrich said...

Roughly 15% of stimulus spending is associated with alternative energy-related projects. To the extent that these projects can be identified with specific recipient companies, investment funds may follow. RLW

Anonymous said...

Isn't the picture on this story of Chinese solar panels?

Richard Wottrich said...

Yes - RLW