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Ann Arbor, MI – October 8, 2003 – The $641 million invested in clean technology
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ventures during the first two quarters of 2003 is 22% higher than the $524 million
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invested over the same period last year, according to the most recent issue of
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the Cleantech Venture Monitor released today. Given the overall decline in
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venture financings, cleantech doubled its venture capital market share to 8%
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during Q1-Q2 2003 from 4% in the same period last year. Nearly 100 cleantech
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companies were funded in the first half of the year.
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For energytech-focused investors the news is not so good. The first six months of
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2002 saw energytech taking over 60% of all cleantech venture dollars. Over the
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comparative period for 2003, energytech has dropped to 34%, declining to 29%
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this past quarter. According to Nicholas Parker, Chairman of the Cleantech
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Venture Network: “Investors in this segment are cautious given the lack of
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positive market dynamics in the distributed generation area and the weak
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performance of publicly traded energytech stocks”. Investors are diversifying into
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other cleantech segments such as more efficient materials, air quality and water
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purification.
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“What’s common to all investors”, says Parker, “is they increasingly want to see
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revenue and evidence of near-term profitability from prospective investees”.
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Accordingly, the 21 companies selected so far to present at Cleantech’s
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forthcoming venture forum (New York, October 21-23) have collectively
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generated revenue approaching $100 million. With evidence of market traction
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for cleantech products, rising capital commitments and new investors, the
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opportunity to build a cleantech venture community is greater than ever before.
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Publicly launched in July 2002, the Cleantech Venture Network is a market
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facilitation service providing venture forums, investment reports, and online
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services to investors and companies.
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For additional information, please go to www.cleantechventure.com or contact:
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Keith Raab, CEO, keith@cleantechventure.com, 517-223-9607 or
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Nicholas Parker, Chairman, nicholas@cleantechventure.com, 416-456-9314