Greentech investment climate showing strong signs of recovery
Venture Capital investment in greentech looked a lot healthier in the
third quarter of 2009 compared to the previous two quarters of this year
according to a report by Greentech Media.
The third quarter closed with $1.9 billion invested in 112 deals
compared to $1.2 billion invested in 85 deals in Q2 and $836 million
invested in 59 deals in Q1. The dominant investment sector was solar
with $576 million invested in 29 deals. Following solar was biofuels
with $513 million invested in 17 deals and smart grid with $160 million
invested in 14 deals.
Year to date the total venture capital investment in greentech stands at
$3.9 billion and is already the second best year for greentech VC
investing behind 2008. In 2008 total greentech VC investment was $7.6
billion and 2007 was $3.5 billion.
A huge factor boosting the third quarter greentech VC investment is the
money flowing into clean energy projects from the American Recovery and
Reinvestment Act. More than $1 billion has been awarded so far this
quarter to clean energy projects through the recovery act providing a
much needed boost of confidence to the investment community in general.
Data compiled from Greentech Media, Greenbeat, GTM research and DOE.