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Clean Technology Venture Investment Totaled $5.6 Billion in 2009

Despite no binding climate change accord in Copenhagen, VC investment in cleantech is on a global rebound, say The Cleantech Group and Deloitte. Strong M&A and IPO activity in Asia and an increased share of VC investment in Europe underscore the global growth of cleantech.

The Cleantech Group and Deloitte today announced preliminary 2009 results for clean technology venture investments totaling $5.6 billion in 557 deals in North America, Europe, China and India. That's compared to $8.5 billion in 2008.

 photo on EnergyPriorities.com

According to the preliminary results, 2009 may turn out to be the second best year on record for clean technology venture capital investments. (Cleantech Group and Deloitte graph)

"Record levels of activity from investors, governments and corporations in 2009 demonstrated that the market for clean technologies continues to strengthen regardless of any non binding global climate change agreement," said Nicholas Parker, Executive Chairman, Cleantech Group.

$5.6 billion is a preliminary figure. Late investments yet to be announced could push the figure up, making 2009 a record year for number of cleantech VC deals. It could even match 2007, when just over $6 billion were invested.

In parallel to trying to reach carbon agreements, governments spent the year earmarking hundreds of billions of dollars for clean technology in pursuit of economic growth. And in the private sector, about a quarter of all global venture investment capital was invested in cleantech in 2009-more than software, biotech or any other category.

The Cleantech Group predicted a good year for cleantech in 2010. One of the big trends they see is that energy efficiency -- e.g., lighting, buildings, sensors -- will be an important sector to watch, and could eclipse solar (due in part to solar's decline).

Comments

Great venture capital study from Cleantech Group LL and Deloitte. With recession investments still exceeding five billion dollars, it’s clear that green technologies are here to stay and will be a driving economic force in the next decade. More interesting than the total is the breakdown of funds: solar, transportation, and then energy efficiency.