Confidence Picks Up in Clean Tech Funding: Report

Thank billions in government funding for helping to lift clean technology investment in the third quarter, said the Cleantech Group and Deloitte in a report Wednesday.

The quarterly analysis reiterated that the recession has kicked but not killed investments in this sector, which remain down 42 percent from the third quarter of 2008. Biotech and IT combined receive less funding than clean tech, which continues its climb from the second quarter, the report noted.

“The two largest venture deals (Solyndra and Tesla Motors) and the largest IPO (A123Systems) this quarter were all recipients of U.S. government funding,” said Cleantech Group managing director Dallas Kachan in a statement.

The report also credited renewable energy tax credit extensions and renewable energy portfolio requirements with emboldening venture capitalists and utilities, which continue expanding wind and solar projects.

Solar comprised 28 percent of clean tech venture dollars in the more recent quarter, although such spending sank to $451 million down from $1.2 billion a year ago. Next best were the transportation sector, which recently received $383 million, and green building startups with $110 million.

Additional big funding news in the third quarter involved Solyndra, SolFocus, Think Global and Serious Materials.

North America led the pack with 67 percent of investments, followed by Israel and Europe with 29 percent, then China at 3 percent. Indian-based startups raised $21.5 million.

The most active funds were Intel Capital; Kleiner Perkins Caufield & Byers; New Enterprise Associates and Braemar Energy Ventures.

IPOs included Indian Energy and Euro Multivision of India for its photovoltaic manufacturing arm.

Members of the Cleantech Group’s Cleantech Network can learn more about the report’s findings in a webinar on Oct. 6.

[photo credit: Flickr]

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