Cleantech investing in North America continues to gain momentum in 2006, attracting a new high of $513 million in venture capital during the first quarter of 2006. That’s an increase of 52.9% from the first quarter 2005!
67 companies received funding during the quarter, up from 49 in Q1 2005. More significantly, the average deal size rose to $8.28 million, up 16.7% from Q1 2005. The cleantech equity investment category in North American venture capital remains in fifth place, ahead of semiconductors and behind only biotechnology, software, medical and telecommunications.
“The data trends reflect the impact of existing global political, economic, technological and social market drivers and the increased confidence investors have in the cleantech category,” said Nicholas Parker, Chairman and Co-Founder of the Cleantech Venture Network, which released the information in The Cleantech Venture Monitor.
Keith Raab, CEO and Co-Founder of the Cleantech Venture Network, pointed out that energy-related deals dominated cleantech investments for the quarter. “The $357 million invested in energy accounted for nearly 70% of all cleantech Q1 investments and 48% of the total energy investment made in 2005,” he said. “Energy generation led the other three energy areas with $154 million invested.”
Cleantech investment now accounts for 8.5% of all North American venture capital investment. Since 1999, $8.8 billion has been invested in the sector.
The Cleantech Venture Network LLC brings investors and cleantech entrepreneurs who are seeking capital together through the Cleantech Venture Forum series of events. The next event is in London on June 7.
|Want to learn more about cleantech venture capital investing? The May 2006 issue of Progressive Investor interviews six VCs on the trends and exciting technologies in our field.|