press releases

Venture investment in Clean Technologies set to exceed US$1 billion in 2002

 

  • Toronto, ON & Ann Arbor, MI – September 26, 2002 – The first Cleantech Investment Monitor
  • released today provides good news for the decimated venture capital industry and for those
  • seeking a cleaner environment. Investments in “clean” technology companies - ranging from fuel
  • cells to water purification systems – exceeded US$500 million in the first half of 2002, more than
  • doubling from Q1 to Q2. A full version of the Monitor can be downloaded at
  •  
  • Venture investors in the first half of 2002 funded over 70 companies, each receiving an average
  • of US$7.2 million. Eleven companies received commitments of US$15 million or more. Clean
  • energy related companies received just over 60% of cleantech venture dollars, with energy
  • infrastructure (such as hydrogen storage) accounting for a third of all investment activity in Q1
  • and energy generation (such as solar cells) for 40% in Q2
  •  
  • In the few venture areas that are hot, such as nanotechology, the near-term opportunities seem
  • best suited to cleantech applications, from membranes to catalysts. In the first half of 2002,
  • nanotech and advanced materials accounted for approximately 14% of cleantech venture
  • investments, or just over $80 million. The cleantech products being developed today have
  • significant improvements over the old because they:
  •  
  • • Are lighter, smarter and stronger;
  • • Are cheaper to manufacture and operate;
  • • Are less carbon-intensive and more energy efficient;
  • • Offer greater service utility per unit of material input and;
  • • Enable virtually zero waste and/or emissions
  •  
  • According to Cleantech chairman and managing editor Nicholas Parker: “Many large corporations
  • are making a concerted push to incorporate cleantech into new product and market development.
  • The involvement of government, big business and consumer advocates is creating new
  • opportunities for nimble start-ups in the cleantech area. For venture investors, this is a win-win
  • proposition: relatively low valuations due to depressed capital markets and exciting cleantech
  • opportunities due to technical advances and changing socio-economic dynamics”.
  •  
  • In Canada, where the Cleantech Venture Network will hold its first venture forum in Toronto on
  • November 13-14, investment in Canadian cleantech ventures is expected to exceed C$200
  • million in 2002. Canadian companies received just over 13% of all capital invested in cleantech
  • companies in North America during the first half of 2002, a significantly higher percentage than
  • that for other industry sectors. In Q1, cleantech companies took approximately 8% of Canadian
  • venture dollars, up from virtually nothing the previous year.
  •  
  • Established in April 2002, the Cleantech Venture Network is a market facilitation service
  • accelerating the next and necessary wave of venture innovation. The Monitor is a quarterly
  • publication of the Network. For additional information, go to www.cleantechventure.com or
  • contact nicholas@cleantechventure.com, phone (416) 456 9314