Cleantech venture capital investments on the rise

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http://www.altassets.com/news/arc/2007/nz11750.php

Cleantech venture capital investments on the rise

02/10/2007. Source: AltAssets.

Global venture capital investments in clean technology companies surged to $1.1bn in the first six months of 2007 alone, according to Ernst & Young and Dow Jones VentureOne.

'Clean technology has moved from vision to reality, and it is now a priority on the CEO agenda of every company from the entrepreneurial growth companies to the multinational market leaders,' said Gil Forer, global director of Ernst & Young's Venture Capital Advisory Group. 'The accelerating venture capital investments reflect the growing importance of the sector. A strong innovation pipeline and confidence in the global drivers supporting growth in the clean technology market - such as government policies, consumer awareness, energy prices and concern about carbon emissions - are driving venture capital investment.'

In the US, venture capital investment in cleantech companies has jumped to $893m across 71 deals in the first half of 2007, from $525m on 49 deals in the first six months of 2006, according to the research.

European investments are set to reach or even exceed 2006 levels, with 19 deals and $80m invested in H1 2007.

Jessica Canning, director of global research with Dow Jones VentureOne, said, 'Although venture capital investments in clean technology companies in China and Israel are still nascent, we expect that they will continue to accelerate.'

Looking at the market segments, solar is dominant in the US and alternative fuels are on the rise. In Europe, alternative fuels are still dominating with wind power having a fair share of the total amount invested.