A Global Cleantech Boom In The First Half Of 2007


You know all eyes are on cleantech investments when Wired runs a tagline on its cover: “Silicon Valley Goes Crazy for Cleantech.” Well, Ernst & Young and Dow Jones VentureOne sent out some research this morning with more data on the subject: global venture capital investments in clean technology companies grew to just over $1 billion in the first six months of 2007. And the U.S. is leading the cleantech charge with 71 deals closed in the first six months of this year that raised over $893 million.

With that amount of U.S. funding, global cleantech venture investment for the full-year 2007 period is said to be on track to increase by more than 35 percent compared to 2006. Yeah, it overwhelms us too. Some more details from the report:

  • In the U.S., solar investments are dominant, and accounted for 15 of 26 deals and $305 million of the $458 million raised in the energy generation segment.
  • In the U.S., median cleantech valuations reached $30 million in the first half of this year –- up from $15.8 million in 2001.
  • European investments had 19 deals and $80 million invested in the first six months of 2007. Biofuels are dominating, while wind power made up “a fair share” of the total amount invested.
  • Cleantech venture investments in China and Israel are “still nascent” but expected to “continue to accelerate.”
  • The report points out that while there have been relatively few venture-backed IPOs in the cleantech space in the first half of this year, as the sector matures, more clean technology IPOs over the next couple of years are expected.

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