Venture capital investment in green technologies decreased slightly in 4Q08 according to reports released this week.
VC funding in the sector decreased to $2.5 billion for the quarter, down from $2.9 billion in 3Q08, according to Greentech Media Inc.
Solar technology once again led the VC charge with more than $1.3 billion invested in 29 venture capital rounds–more solar deals closed in the fourth quarter than in the third quarter’s total of 26. The solar total was heavily influenced by Solyndra’s massive fund raise, but even without that figure–the solar investing landscape was still very active. Greentech media suggest it might even be "over-invested."
Other renewable energy sectors, such as wind, smart grid and energy storage continue to receive record amounts of funding. Venture firms invested heavily in biofuels such as cellulosic ethanol and algae with more than $350 million directed towards these new feedstocks and technologies.
Year-End Numbers
A separate report came out today showing preliminary 2008 results for clean technology venture investments in North America, Europe, China and India totaling a record $8.4 billion, up 38% from $6.1 billion in 2007. The 2008 total represents the seventh consecutive year of growth in venture investing, according to the Cleantech Group, which released the report.
Preliminary worldwide results for 4Q08 indicate venture investment commitments of $1.7 billion, the smallest quarterly total in 6 quarters. 4Q08 was down 35% from 3Q08, yet down only 4% from 4Q07 despite a much more difficult economy.
The top clean technology sectors in 2008 were solar, biofuels, transportation, and wind. Solar accounted for almost 40% of total clean technology investment dollars in 2008, followed by biofuels at 11%.
In 2008, U.S. companies raised $5.8 billion, up 56% from 2007. US companies accounted for 68% of the global total.
European and Israeli companies raised $1.8 billion, up 43% from 2007. Europe and Israel accounted for 21% of the global total.
Chinese cleantech companies raised $430 million, up 22% from 2007. China accounted for 5% of the global total.
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