Q1 2006 Cleantech investment hits six-year high at $513 million

Record $352 Million Invested in the Energy Segment

• ANN ARBOR, MI, May24, 2006 – Cleantech investing in North America is continuing to gain
• momentum in 2006, the Cleantech Venture Network LLC announced today in their Cleantech
• Venture Monitor™ report. Researchers reported that a six-year high of $513 million in venture
• capital was invested in cleantech during Q1 2006, representing a 2.3% increase over Q4 2005 and
• a 52.9% increase over Q1 2005.
•  
• There were 67 separate deals done in the quarter, down from the 73 done in Q4 2005, but up 37%
• from the 49 done in Q1 2005.
•  
• Most significant was the increase in average deal size to $8.28 million, up 20% from the Q4
• average of $6.88 million and 16.7% from Q1 2005. According to research data to be officially
• released June 7 at Cleantech Venture Forum X in London, 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 CoFounder of the Cleantech Venture Network, which tracks
• cleantech industry data for North America and Europe.
•  
• Keith Raab, CEO and CoFounder
• of the Cleantech Venture Network, pointed out that energyrelated
• deals dominated cleantech investments for the quarter. “The $352 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 $147
• million invested.”
•  
• Cleantech investment accounted for 8.5% of all North American venture capital investment in Q1
• compared to 9.1% in the previous quarter and 7.5% in Q3 2005.
•  
• The Cleantech Venture Monitor™, the leading source for quarterly cleantech deal information,
• has tracked more than $8.8 billion in cleantech deals since 1999. The latest analysis shows that
• investment in cleantech is continuing to grow and may soon surpass the record $797 million
• made during Q1 2000.
•  
• “We will officially release the detailed analysis of this data and our European investment
• information to over 300 investors and global thought leaders on June 7,” said Mr. Raab. The
• announcement will be made June 7 at the Cleantech Venture Forum X at the London Marriott
• Grosvenor Square.
•  
• This quarter’s data brings the total amount of North American venture capital invested in the
• cleantech category since 1999 to more than $8.8 billion. In the recently released comprehensive
• Cleantech Venture Capital Report 2006, Cleantech Venture Network estimates that capital
• requirements of cleantech companies between 2006 and 2009 may reach $8.7 billion in North
• America.
• About Cleantech Venture Network, LLC
• The Cleantech Venture Network TM LLC is a membership group that brings investors together
• with cleantech entrepreneurs who are seeking capital through the Cleantech Venture Forum™
• series of events. The network has over 900 affiliate members worldwide who take advantage of
• the global forums, comprehensive market research services and reports, online proprietary
• database of prescreened venture grade companies, online deal flow, online directory of investors
• active in cleantech, and information services including the quarterly Venture Monitor publication
• that tracks and analyzes all cleantech venture deals in North America and Europe and the twice
• monthly market briefing.
•  
• Of the $5 billion of venture capital raised in cleantech since 2002, over $450 million has been
• raised at presenting companies at the forums. The organization has tracked and analyzed more
• than $8.8 billion of North American venture investment in cleantech since 1999 and all European
• cleantech investments.