Investments in Cleantech Companies Reach Record High

Investments in privately held cleantech companies reached a record high in the second quarter 2006, according to the Cleantech Venture Network. Investment in North American companies rose for the eighth consecutive quarter -reaching $843 million, up from $513 million in the first quarter. 88 deals were signed, up from 66 in the first quarter.

Venture capital investing in general hit a four-and-a-half-year high of $6.73 billion, according to Ernst & Young and Dow Jones VentureOne, and cleantech companies captured several of the top deals.

Thin-film solar manufacturer, Nanosolar Inc. tied for second, with a $75 million round closed in June. Nanosphere Inc. ranked fifth, with a $57 million round in May, and Altra Inc. came in 11th place with a $50 million deal in April. U.S. biofuel plant developer Panda Ethanol closed a $90 million placement to fund a manure-powered ethanol plant in Texas.

Private Investment in Public Equity (PIPEs) also surged in the second quarter with $556 million placed – up from $21 million in the first quarter. Small companies are increasingly using PIPEs to fund expansion, avoiding the effort of a full secondary offering. Plug Power raised $217 million from Interros, a major Russian investment house, and Norilsk Nickel, the world’s largest producer of palladium and nickel. Pacific Ethanol raised $229 million from two PIPEs.