press releases

Cleantech investment totals more than $1.2 billion in 2004

 

Total Capital Devoted to Cleantech Increases for the Third Consecutive Year; Cleantech Investment Grows to $314.3 Million in Q4 2004

  • HOWELL, MI, March 16, 2005 – According the Cleantech Venture Network LLC, overall
  • cleantech investment in 2004 totalled $1.209 billion, up 3.4% from the $1.169 billion recorded in
  • 2003 and up 11.4% from the 2002 total of $1.085 billion. The Cleantech Venture Network has
  • tracked $3.464 billion of investment into the cleantech space since 2002. Additionally, in Q4
  • 2004 investment into clean technology companies increased for the 3rd straight quarter to $314.3
  • million, up from $311.6 million in Q3. The Q4 total is the largest in three years since Cleantech
  • Venture Network began tracking the category. This information will be fully examined next
  • week during Cleantech Venture Forum VI at the San Francisco Marriott, March 22-24, 2005.
  •  
  • In 2004, cleantech investment captured $1.209 billion (5.8%) of the $20.9 billion of venture
  • capital invested across all industries. Furthermore, in Q4 2004 Cleantech captured more than 6%
  • of the $5.279 billion invested in North America overall, up significantly from 4.7% in the
  • previous quarter. Cleantech now ranks 7th in size as an industry segment behind Software,
  • Biotechnology, Telecommunications, Medical Devices and Equipment, Semiconductors and
  • Networking Equipment.
  •  
  • “As we look forward to Cleantech Venture Forum VI next week, the Q4 and 2004 figures suggest
  • that cleantech has arrived as a sustainable asset category, avoiding the risk of being classified as a
  • short-term investment ‘bubble,” said Nicholas Parker, co-founder and chairman of the Cleantech
  • Venture Network. “There is a rising tide of sophisticated corporations, venture capital funds and
  • private investors in the cleantech space, but the one major constraint is the flow of capital from
  • institutional investors. This is a trend that we anticipate will begin to change in 2005, as it is our
  • opinion that the cleantech category is where biotech was about a decade ago.”
  •  
  • For the second consecutive quarter cleantech investment leaders RockPort Capital and EnerTech
  • Capital were among the most active investors in Q4. They were joined by SAM Sustainable
  • Asset Management with each firm participating in three cleantech financings, as 10 firms
  • participated in multiple cleantech financings in Q4. In total there were 94 unique investors
  • participating in a cleantech investment in Q4 2004. In 2004 more than 360 different groups
  • participated in at least one cleantech investment.
  •  
  • Additional Key Q4 2004 Data Points:
  • · Europe Continues to Emerge: Eleven European cleantech investments were tracked in Q4
  • for a total of $84.1 million. Five of the companies were from the United Kingdom, three3
  • from Germany, and one each from France, Israel and Norway.
  • · The Deal Size Remains the Same: The average deal size in Q4 remained consistent at $6.2
  • million. By comparison, the average investment across all industries again remained virtually
  • unchanged at $7.1 million.
  • · Focused on Follow-on Financing: Later stage deals continued to receive the bulk of the
  • investment capital, capturing 73.2% of the cleantech total. This percentage was down from
  • the 86.2% recorded in Q3.
  • · Early Stage Comeback: In Q4 2004, 10 companies received investments under $1 million.
  • · Energy’s Reign Continues: Energy related investment remained strong in Q4, as the
  • segment captured nearly 51% of the cleantech total - $167.8 million, which was virtually
  • identical to the amount received in Q3.
  •  
  • About the Cleantech Venture Network, LLC
  • The Cleantech Venture Network LLC is an organization that connects venture, corporate and
  • institutional investors with "clean technology" entrepreneurs, through related information
  • products, online services and the Cleantech Venture Forum series of events. We serve over 600
  • affiliate investor member firms worldwide. We have tracked more than $3.6 billion invested in
  • cleantech ventures since 2002, of which nearly $275 million has been raised by Forum-presenting
  • companies. Further information can be found at www.cleantech.com or by calling (+1) 517-223-
  • 9607.
  •  
  • Cleantech Venture Network invites companies and investors engaged in commercializing or
  • investing in clean technologies to apply for membership as a Company or Investor. Companies
  • should contact Lauren Bigelow at lauren@cleantech.com and investors should contact Cheryl
  •