Cleantech Venture Network LLC released the “Cleantech Capital Report – 2005,” the first comprehensive examination and projection of cleantech venture investments and capital requirements. The report examines North American cleantech venture capital investment over a 10 year period covering more than $7.3 billion of cleantech venture investments from 1999 through mid 2005 and projecting cleantech investment to the end of 2009. The report forecasts that capital dedicated to cleantech could total $10 billion from 2005 through 2009.
“The report captures three distinct phases in the evolution of the cleantech investment category, starting with the recent Internet-related ‘bubble and burst’ period, the present ‘learning and diversification’ phase and the next phase, which may have already begun, called ‘growth and returns’ in which capital requirements may outstrip supply.
This will have significant implications for both investors and entrepreneurs as it appears that “cleantech” is emerging as a defined investment theme at twice the pace of “biotech’s” rise in the 1980s and early 90s” said Nicholas Parker, co-founder and chairman of the Cleantech Venture Network LLC. “With the combination of rising energy costs, overall natural resource scarcity, growing demand for environmentally superior products and greatly improved cleantech alternatives, it is possible cleantech will capture up to 10% of overall venture capital flows by 2009, as well as an increasingly large portion of both M&A and IPO activity.”