Cleantech investment totals over $3 billion since 2002

Tenth Cleantech Venture Monitor Highlights Investment Milestone; Q2 Results Fueled by Follow-On Funding as Overall Deal Rate Increases by 35%

• HOWELL, MI, September 28, 2004 – Venture funding in the cleantech sector showed
• significant growth in the second quarter of 2004. According to the Q2 2004 Cleantech
• Venture Monitor, released today by the Cleantech Venture Network, the investment deal
• rate increased by 35%, as the investment community focused on supporting existing
• portfolio companies with follow-on round investments.
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• “Since our first Venture Monitor at the beginning of 2002, we have now tracked over $3
• billion in cleantech venture investments. This is a considerable amount for what is still
• regarded as an emerging asset category,” said Nicholas Parker, co-founder and
• chairman of the Cleantech Venture Network. “As we approach the Cleantech Venture
• Forum V on October 25-27 in Toronto, we plan to report more regularly on the
• companies that have presented at our events and succeeded in raising capital. In fact,
• those presenting at our first four Forums have succeeded in raising in excess of $200
• million to date, an impressive performance by any standard.”
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• In the second quarter of 2004, the overall number of deals executed jumped to 62 from
• the 46 transactions tracked in Q1 and from just 40 companies in Q2 2003. At $278
• million, total capital invested in cleantech dropped slightly from $308 million in Q1 2004.
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• “During Q2 investors were very focused on supporting existing portfolio companies
• through ‘capital-lite’ follow-on rounds at the expense of earlier stage deals,” said Keith
• Raab, co-founder and president, Cleantech Venture Network. “Follow-on round
• investing captured a majority of the cleantech funding total - this quarter as over 77%
• ($216 million) was allocated to later-stage investments.”
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• Additionally, Cleantech Ventures has been working with industry analyst Jim Logerfo
• and a group of investors to study the historical and projected returns, exits, trends and
• performance of the cleantech investment sector. Cleantech Ventures expects to have
• the report ready for publication in October.
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• Key Data Points:
• · Energytech Back on Top: Energy-related investments bounced back in Q2,
• capturing $150 million, more than 40% of total cleantech investment this quarter.
• Energy-related investments rose 163% in Q2, a significant increase from the record
• low of $56.8 million recorded in Q1 2004, which was a two-year low. Transaction
• volume in Q2 more than doubled in the energytech sector to 25 investments from 12
• the previous quarter, with generation technology plays comprising nearly two thirds
• of the capital deployed.
• · Seed Investment Slump: Only two deals were completed for a total of just over $.1
• million. Seed investment volume had been about 8-11 deals per quarter for the past
• few quarters.
• · First Round Financing – Steady As She Goes!: First-round financings held
• relatively steady in Q2 at just over $62 million in 21 companies. A year ago, the
• numbers were $86 million across 20 companies.
• · Recycling Picks Up: Materials Recovery & Recycling investments increased by
• 242% to $19.5 million in Q2. The sector recorded the 2nd largest average
• investment level at $6.5 million — second only to energytech at $6.8 million.
• · A Breath of Fresh Air: After showing no investment activity in Q1, the Air Quality
• sector rebounded with four transactions for a total of almost $12 million invested.
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• Geographical Trends:
• · And Still Champion… The West Coast: The West Coast once again attracted
• more investment capital (34% of total) than any other region in North America.
• However, the Q2 total of $95.4 million was down 38% from the $153.6 million
• recorded in Q1 2004. Fifteen of the 62 investments were in West Coast companies.
• · North of the Border Gaining: Canada doubled its activity over the same period last
• year, capturing 10.9% of capital invested in Q2 for a total of $30.3 million and
• accounting for one in four deals executed. The activity was spread out over 15 deals
• with the East leading the West. Canada has more than doubled its market share
• since Q2 2003, where it received only 5% ($15.6 million) of the total cleantech
• investments. Volume increased from four transactions to 15.
• · EU Continues Strong Growth Rate: An additional $79.8 million was invested in 10
• cleantech companies in Europe in Q2. Four of the ten investments were in Germany
• and three were in the UK.
• · Northeast Investment Growing: In the U.S, the Northeast was second to the West
• Coast with over $66.5 million invested in Q2 — nearly a 19% increase from the Q1
• number of $56 million, with 13 companies receiving funding in Q2.
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• About Cleantech Venture Forum V
• Cleantech Venture Network will be hosting the Cleantech Venture Forum V, October 25
• to 27, at the Intercontinental Hotel in Toronto, Canada. Cleantech Venture Forum is
• held twice annually once on both the East and West Coasts. Up to 350 attendees are
• expected at Cleantech Venture Forum V, after more than 450 attended Venture Forum
• IV in San Francisco. 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
• investment opportunities from leading thinkers on clean technology innovations and
• trends. Lead sponsors include, EnerTech Capital, Heller Ehrman White & McAuliffe
• LLP, NGEN Partners, and Odyssey Venture Partners. Interested attendees can register
• for Cleantech Venture Forum V 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.
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• Cleantech Venture Network invites companies and investors engaged in
• commercializing or investing in clean technologies to apply for membership as a
• Company or Member, for details contact Lauren Bigelow at lauren@cleantechventures.com.