Invest in Cleantech

Invest in Cleantech

Thursday, January 17, 2008

Cleantech Investments Reach New Apex of $5.18 Billion Over 2007 and Sixth Consecutive Year of Growth

Cleantech Investments Reach New Apex of $5.18 Billion Over 2007 and Sixth Consecutive Year of Growth

Q407 with 100 Percent Year-Over-Year Gain


SAN FRANCISCO, Jan. 17 2008 -- The Cleantech Group, LLC, founders of the cleantech investment category, released today YE2007 and Q407 results for cleantech investments indicating the sixth consecutive year of sustained investment growth. Additional analysis will be released at Cleantech Forum XVI in San Francisco on February 25-27, 2008.

North America (NA) and Europe produced stronger than expected growth in Q407, with total cleantech investment across the regions more than doubling year-over-year, from $676 million in Q406 to $1.38 billion in Q407. This brings the level of venture investment in NA and Europe for 2007 to $5.18 billion and historical results for the cleantech category as:


2007: $5.18 billion
2006: $3.6 billion
2005: $2.5 billion
2004: $1.8 billion
2003: $1.7 billion
2002: $899 million
2001: $714 million
Source: Cleantech Group, LLC (TM)


NA cleantech investing in 2007 grew by 38 percent, from $2.87 billion invested in 2006 to $3.95 billion invested in 2007. The number of deals increased by 15 percent, from 233 in 2006 to 268 in 2007. The average deal size increased by 20 percent, from an average of $12.3 million in 2006 to $14.7 million in 2007.

European cleantech investing grew by 34 percent, from $915 million in 2006 to $1.23 billion in 2007. The number of deals increased by 56 percent, from 67 in 2006 to 105 deals in 2007. Average deal size in Europe increased by 26 percent from $7.8 million in 2006 to $9.8 million in 2007 (excluding the outliers of the $395 million Airtricity financing in 2006 and the $205 million Isofoton financing in 2007).

North American companies continue to receive the lion's share of cleantech venture investing, with North American-based companies receiving over 3x the investment of European-based companies.

"Despite strong headwinds building in the global economy and tightening credit markets, the medium and long-term value propositions for cleantech opportunities sustained the sixth consecutive year with unexpectedly robust growth," said Nicholas Parker, co-founder and Chairman, Cleantech Group. "High carbon-based energy prices, global resource competition and increasingly favorable policy frameworks provide stronger than ever fundamental drivers for cleantech investors, and we foresee continued growth over 2008 as the cleantech market cycle moves from early adoption to mainstream driver of wealth and job creation."

2007 Top 5 Cleantech Investment Sectors

The cleantech investment category is composed of 11 industry segments. (full details and definitions on the cleantech category can be found at http://www.cleantech.com.) Over 2007, the top five categories by total financings were:


Energy Generation: $2.75 billion; 172 deals

Energy Storage: $471 million; 20 deals

Transportation: $445 million; 20 deals

Energy Efficiency: $356 million; 41 deals

Recycling & Waste: $291 million; 17 deals

Source: Cleantech Group, LLC (TM)


Energy Generation remained the forerunner over 2007. Within the NA and European markets, companies based in California received the majority of financing, representing $966 million, a 38 percent increase over 2006 levels. In Energy Storage, the highest percentage of financings went to companies in the Northeastern United States, receiving $208 million, up from $39 million the year before. In Recycling and Waste, companies based in Western Europe received the largest percentage of total financings at $81 million, up from $17 million in 2006.



Five Largest Cleantech Rounds in 2007

Company Country Amount
$(mil)
Isofoton SA Spain 205
Brazilian Renewable Energy Co., Ltd. Brazil 200
Project Better Place US 200
Yingli Green Energy Holding Co. Ltd. China 118
HelioVolt Corp US 101
Source: Cleantech Group, LLC



The number of $100 million or larger rounds increased over 2006 levels, indicating increased investor confidence in the category, while 8 of the top ten solar financing rounds since 1999 occurred in 2007. Related in the solar market, a significant drop in the price of materials for silicon PV solar could come in 2008 due to increased refining capacity coming on-line over 2008-2010 timeframe.

China, India, Brazil and Australia

With results for China, India, Brazil and Australia to be unveiled at Cleantech Forum XVI in San Francisco, preliminary results show continued and significant investment growth in 2007. In addition to three successful crystalline silicon IPOs, China attracted investor interest for solar companies, including Yingli Green Energy Holding Co. Ltd., which received $118 million, and Shunda Holdings Co. Ltd., which received $82 million. In India, the top three cleantech investments included solar company Moser Baer Photo Voltaic Ltd. with $100 million and wind companies Vestas RRB India Ltd at $55.6 million and Regen Powertech Private Ltd. with $25 million. Interest in the Southern Hemisphere is also increasing, with Brazil securing the largest deal with a $200 million round for sugarcane ethanol-producer, Brazilian Renewable Energy Co.

Public Markets and M&As

The Cleantech Index(TM) (CTIUS), composed of 47 leading cleantech public companies across the full range of sectors within the cleantech category (including energy efficiency and renewable energy to advanced materials, air & water purification, water and agriculture), rose 42 percent over 2007.

Top IPOs tracked included Iberdrola Renovables in Spain, Cosan Ltd. in Brazil, Polypore Intl Inc. in the U.S., and LDK Solar, Yingli Green Energy Holding Co. and JA Solar Holdings Co., all Chinese crystalline silicon photovoltaics producers. Unlike prior years, the majority of large IPOs shifted from Europe to US exchanges.

Top cleantech acquisitions closed in 2007 included targets Horizon Wind Energy LLC (US), SULO GmbH (Germany), Actaris Metering Systems Ltd (Germany), Metal Management Inc. (US), and Airtricity North America (US). The combined value of the M&A transactions was $8.76 billion.

Cleantech Forum XVI San Francisco February 25-27 2008

Please join Cleantech Group for its 16th annual Cleantech Forum in San Francisco on February 25-27. "Crossing the Chasm: From Roadmap to Purchase Order" will bring together the industry's most influential cleantech innovators, investors and policymakers. Visit http://www.cleantech.com for information and registration.

About Cleantech Group(TM), LLC

The Cleantech Group(TM) LLC provides insight, opportunities and builds relationships that catalyze and accelerate market adoption and commercialization of clean technologies globally. The Cleantech Group(TM) family of companies founded the cleantech investment category and through its membership services brings together investors, executives, thought leaders, policy makers, and entrepreneurs to facilitate the growth of cleantech globally. Visit http://www.cleantech.com.


Source: The Cleantech Group, LLC

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