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Green buildings venture capital investments reach $4 billion – Lux

Green buildings venture capital investments reach $4 billion – Lux
Integrated design in green buildings will become critical.

Venture capitalists have shelled out over $4 billion in investments to develop green buildings. Consequently, they are now eyeing novel and innovative technologies to further the expansion of these sustainable infrastructures, said intelligence agency Lux Research.

The report entitled “Building a Green 21st Century: Tracking Venture Investments in Green Buildings to Uncover New Opportunities,” found that out of the 332 project investment rounds in technology and materials developers for green buildings since 2000, 152 were series A investments, which means that they are the “first time” that company ownerships were presented to external investors.

Meanwhile, 83 of them were series B or the second time financing for a company by venture capitalists, which normally occur when the company has successfully developed its business.

However, in 2011, about 50 percent of the investments in 160 companies, amounting $445 million, were identified as late-stage financing, which are given to start-up companies when their products and services become widely available. This indicates the maturation of the first wave of green buildings start-ups.

“Early V.C. investors are looking for exits for the first wave of successful green buildings startups and the seeds of the next crop are being sown in on-site generation and sustainable materials,” said Ryan Castilloux, Lux Research analyst.

Integrated design in green buildings will become critical, due to the insistent energy efficiency goals of the European Union and the similar long-term goals of the United States. Modern start-ups in this area, such as the ones by the venture-backed smart buildings companies Project Frog and Blu Homes, have earned $84 million in funding since 2008.

Meanwhile, on-site generation materials and schemes have been the center of investments, gaining a substantial amount of $983 million. Green technologies like micro-combined heat and power generators can help achieve the target of many developers for Net Zero Energy Buildings. “Green buildings” has emerged as a critical investment category at the nexus of energy security, environmental sustainability, and corporate social responsibility,” said Lux Research. – EcoSeed Staff

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