Clean Tech Investments Take a Tumble in 1st Quarter
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The Clean Tech Group let loose news that investments in clean technology took a bit of a dive this quarter. Well, not a bit of a dive - a big fat swan dive. Investments are down 41% from last quarter, and down 48% from this time last year.
Cleantech venture investments have now declined for two consecutive quarters since peaking at $2.6 billion in 3Q08, representing the lowest level of venture capital investment in clean technology companies in two years. The average round size has contracted from $20 million in 3Q08 to $ 12.3 million in 1Q09.
It goes a bit against the high hopes displayed last year by the industry. But, Brian Fan, Senior Director of Research of the Cleantech Group says that significant funding is still going in to clean technology, so not to worry...too much. That's because governments are spending more money in the sector than ever, picking up a little of the slack left by private investors.
A report titled 'Towards a Global Green Recovery' to be presented at the G20 Summit in London later this week estimates that almost $400 billion of some USD $2.6 trillion in economic stimulus allocations announced so far by G20 nations are earmarked for clean technologies such as renewable energy, improved electrical grids and cleaner cars.
Solar is getting the most attention, by far, with $346 million invested last quarter. Biofuels, improved batteries, and electric vehicles lagged behind with under $100 million invested in each area.
Via CleanTech Group
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