2003 data shows clean technology investing continues to increase share of overall venture investing rises from 2002

Final 2003 Numbers Demonstrate Trend Shifts in Composition of Investments, Deal Stages

• HOWELL, Mich., March 8, 2004 – Investments in clean technology-related ventures
• continued to rise in 2003, despite a decline in overall venture investing in North America and
• Europe, according to the most recent issue of the Cleantech Venture Monitor just released by
• the Cleantech Venture Network.
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• In the United States, overall venture activity declined by 14 percent from $21.2 billion in
• 2002 to $18.2 billion in 2003; by comparison, cleantech investing increased from $1.1 billion
• to $1.2 billion, a rise of nearly eight percent. As a result, cleantech grew in relative terms
• from 5.1 percent of total venture investments in 2002 to 6.4 percent in 2003, improving
• market share by 26 percent.
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• “The final 2003 numbers demonstrate some very interesting trend shifts in cleantech
• investing,” said Nicholas Parker, co-founder and chairman of the Cleantech Venture
• Network. “For instance, the composition of cleantech venturing in 2003 was remarkably
• different from the previous year, particularly the significant interest we’re seeing in
• companies in the ‘advanced materials and nanotech area’ where investments were up 64
• percent from 2002. We’re also seeing investors focusing their attention at different stages of
• cleantech deals.”
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• CLEANTECH RELEASES FINAL 2003 DATA ON CLEAN TECHNOLOGY
• INVESTING – PAGE TWO
• Parker continued, “For the cleantech venture to continue its growth of the past several years,
• two things are essential: successful exits from deals and the participation of major
• institutional investors to complement the strategic investors who have anchored the leading
• cleantech funds to date. To this end, recent developments are encouraging, particularly the
• successful IPOs of Xantrex Technology, European asset manager Robeco’s announcement in
• January of the formation of a €200 million cleantech private equity fund of funds and
• CalPERS’ announcement that it would invest $200 million in cleantech. We’re looking
• forward to discussions of how all these events affect the future of the cleantech industry at
• our upcoming Cleantech Venture Forum in April.”
•  
• Key Data Points:
• • Energy-related investments declined by 10 percent to $443 million, with
• investments in distributed and alternative generation dropping by 50 percent.
• Offsetting the drop in investment in generation-related deals was the increased
• investment in energy storage companies, which grew by more than 200 percent to
• $106 million in 2003 from just $35 million in 2002.
• • Cleantech companies in the “advanced materials and nanotech” area raised 64
• percent more in 2003 than in 2002; at $245 million raised last year, this segment
• represented one in five deals done
• • Agriculture and nutrition companies focused on cleantech applications also
• attracted more investor interest, raising $81 million – an increase of nearly 400
• percent on 2002.
• • Investors concentrated more on later stage cleantech deals in 2003; follow-on
• investments took 66 percent of all capital deployed, an increase of 30 percent on
• 2002.
• • Investors also concentrated their efforts in the traditional venture hotspots along
• the West Coast and in the Northeast. In 2002, these two regions accounted for 45
• percent of cleantech capital invested, whereas in 2003 they came in at nearly 60
• percent. West Coast companies raised $395 million in 2003, an increase of 60
• percent over 2002. Geographic losers in 2003 were Canadian and Midwestern
• companies; Canadian companies raised only $78 million in 2003, down from $150
• million a year ago.
• CLEANTECH RELEASES FINAL 2003 DATA ON CLEAN TECHNOLOGY
• INVESTING – PAGE THREE
• • $231 million was invested in cleantech deals in the final quarter of 2003. The number
• of cleantech companies backed – fifty – was consistent with previous quarters. Early
• stage deals accounted for 43 percent of capital invested, indicating the drop-off in
• investment from previous quarters was mainly in follow-on rounds that dominated the
• first three quarters of the year. The reason for the overall drop-off may be partly due to
• the attention being focused by the principal cleantech VCs on getting new, early stage
• deals done while preparing select later stage portfolio companies for exit.
• Cleantech Venture Network will be hosting the Cleantech Venture Forum IV, April 28 – 30 at
• the Fairmont Hotel in San Francisco. Cleantech Venture Forum is held twice annually (once on
• both the East and West Coasts), with more than 300 attendees expected to attend the April event.
• During the Forum, attendees hear presentations from companies in the clean technology industry,
• participate in meetings with key investors including business angels, venture capitalists, fund
• managers, investment bankers and corporations and take advantage of leading-edge information
• and research on the investment opportunities from leading thinkers on clean technology
• innovations and trends. Lead sponsors include Heller Ehrman White & McAuliffe LLP. and
• EnerTech Capital. Interested attendees can register for Cleantech Venture Forum IV online at
• www.cleantechventure.com under “Events,” or by calling 517-223-9607.
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• About the Cleantech Venture Network
• The Cleantech Venture Network (Cleantech) is a grouping of member investors managing over
• $3 billion in cleantech venture assets. The company believes “clean technologies” – from solar
• energy to water purification – are the next and necessary wave of venture investing. Cleantech
• introduces promising young companies to investors and investors to quality deal-flow. The
• company has developed a community of money managers, business executives, professional
• advisors, and other stakeholders active in the clean technology venture arena. Cleantech
• organizes venture forums, provides deal flow, publishes a quarterly venture monitor and offers
• related services to investors and entrepreneurs. Cleantech benefits from the expertise and
• counsel of an advisory board comprised of representatives from 14 leading venture capital and
• service provider firms specializing in clean technology. More about the company can be found
• at www.cleantechventure.com or by calling 517-223-9607.