- Category: Finance
07 Jan 2013
- Published on Monday, 07 January 2013 08:44
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Clean technology investments in 2012 dropped to $6.46 billion from $9.61 billion in 2011, according to a preliminary report by global market intelligence firm The Cleantech Group.
Similarly, the number of deals tracked last year fell to 707, which was 15 percent lower than the 829 recorded in 2011.
Of the 704 deals, 60 percent were Series B or later rounds, accountable for about 90 percent of the total investments during the quarter.
“Weak [initial public offering] exits, political uncertainty, global macroeconomic stagnation, and fierce competition all played a role in dampening investor enthusiasm for the space in 2012,” said Sheeraz Haji, chief executive officer of Cleantech Group and consulting company GreenOrder.
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When it came to amounts invested in2012, the leading sector was biofuels and biochemicals with $927 million, followed by transportation with $927 million and energy efficiency with $907 million.
In terms of the number of deals, energy efficiency led with 140 funding rounds. The solar sector came in second with 79 deals, despite a notable decline in investments compared to previous years.
The North America region accounted for the largest total venture investment, having $5.07 billion or 78 percent of the overall share. California notably led other states and provinces with $2.3 billion or an almost 50 percent share.
Companies in the European and Israeli regions came in second to the U.S. with 23.6 percent of the clean technology investments amounting to $1.1 billion.
The remaining five percent went to the Asia Pacific region, which grossed $300 million in 2012, a 67 percent drop off from 2011’s $910 million.
For 2010, approximately 37 clean technologies IPOs pushed through to raise $4.1 billion. However, around 10 companies withdrew plans to go public in 2012. Seven of these companies opted to raise private capital instead, including BrightSource Energy, Elevance Renewable Sciences, Genomatica and Glori Energy.
Despite the lukewarm performance in 2012, Cleantech believes that the sector could rebound in the coming year.
According to Mr. Haji, the whole venture capital industry, not just the clean tech sector, experienced a decline in investments last year.
“The cleantech sector will redefine itself in 2013 as investors regroup, continue to favor capital-efficient start-ups and look for new ways to collaborate with large companies,” he concluded. – EcoSeed Staff