Published on Wednesday, 01 February 2012 19:06
Venture capital investment in "cleantech" companies in the United States reached $4.9 billion in 2011, 4.5 percent down compared with investments in 2010, according to Ernst & Young L.L.P.
The category refers to activities in alternative fuels, energy generation and storage, energy efficiency, water, environment and "industry focused products and services" in agriculture, construction, and other sectors. Natural gas is included in alternative fuels.
By region, California continued to lead investment with $2.8 billion, putting in $629.5 million through 26 deals in the fourth quarter of 2011 alone. Coming next are Massachusetts with $465.1 million and Colorado with $363.3 million.
A total of $688.3 million was raised through five I.P.O.'s in 2011, from three in 2010. Three of the newly listed companies came from the biofuels sector - Solazyme, Gevo and Kior. Rentech Inc., a Los Angeles-based clean energy solutions company, and San Jose-based Intermolecular Inc., a semiconductor R and D firm, raised $136.8 million and $96.5 million, respectively.
"Cleantech is still in the early stages of a long-term journey," said Jay Spencer, Ernst & Young's Cleantech director for the Americas.
Ernst & Young used data from Dow Jones VentureSource. – EcoSeed Staff