NEW YORK, May 6, 2008 (PRIME NEWSWIRE) -- Venture capitalists poured $2.2 billion into Cleantech companies in 2007, according to a new study released today from PricewaterhouseCoopers LLP. The report, entitled "Cleantech Comes of Age," discusses the trends in clean technology from the impact of oil prices to the M&A market and includes data from the MoneyTree Report, a quarterly survey that tracks cash-for-equity investments by the professional venture capital community in private emerging companies in the United States. The MoneyTree Report is produced by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.
"The increased venture capital investment into the Cleantech sector can be directly associated with the growing concerns about the environment, energy costs and security," said Tracy Lefteroff, global managing partner of the venture capital practice at PricewaterhouseCoopers. "Despite signs of a weakening economy, the high investment level and intensified adoption rate of technologies in this sector validates the expected growth predicted by industry experts."
The report documents Cleantech's "coming of age" through the analysis of key political and corporate trends occurring in this space, VC funding across all green sub-sectors and the adoption rates of specific cleantech technologies. Record-setting oil prices and the emergence of climate change as a major public policy issue have helped drive investors into technologies aimed at producing alternative and renewable energy, which is an economically viable alternative to fossil fuels. The report also includes insights from industry experts on the exit climate for venture-backed cleantech companies through 2009.
"There is huge enthusiasm taking place in the Cleantech industry and as consumers and corporations increasingly seek new ways to become environmentally responsible, interest and funding directed towards the sector will only continue," said Tim Carey, U.S. cleantech leader at PricewaterhouseCoopers. "We anticipate investments in this sector to become even further segmented with specific sub-sectors emerging in solar, wind, power storage biofuels and transportation."
Key findings from the report include:
* Cleantech sector is being driven by healthy venture capital
investment, continued momentum in cleantech adoption in the United
States, and high fossil fuel prices
-- Venture capitalists poured $2.2 billion into U.S. cleantech
companies in 2007 -- a 45% jump from 2006
-- Solar installations increased 125%
-- Installation in wind turbines grew 45%
-- Bio-ethanol installation production lifted 32%
* While the Cleantech sector as a whole is coming of age, specific
sub-sectors are experiencing stronger growth than others.
-- VC funding in solar energy jumped 133% to nearly $600 million in
39 deals in 2007
-- Investment in wind energy generation companies grew to $115
million in nine deals in 2007, up from $10 million and three
deals in 2006
-- Investment in alternative fuels, including biofuels and nuclear
energy, totaled $290 million in 2007, which fell from being the
highest-funded sub-sector in cleantech in 2006 when $462 million
was invested
-- The pollution and recycling sector emerged as a promising growth
area, attracting 29 deals totaling $202.1 million in 2007
* Concerns over energy security and costs are heating to
uncomfortable levels both at the gas pumps -- and in the
boardrooms.
-- 40% of senior executives surveyed feel that reducing greenhouse
gas emissions and/or waste and pollutants over the next five
years is a leading or important priority within their company
-- 64% of CEOs are concerned about rising energy costs
-- 45% of these same CEOs are concerned about the potential threat
to their business growth prospects as a result of energy
security
"Just as the venture capital industry led the way in creating the biotech, semiconductor and Internet industries, venture capitalists are now poised to help establish a robust clean technology sector comprised of innovative, cutting edge companies in the United States," said Mark Heesen, president of the National Venture Capital Association. "It is imperative that they work hand in hand with the Congress, the Administration and the regulators to enact public policies that are conducive to research and capital investment in this sector. The venture capital industry, as evidenced by growing investment levels, is committed to bringing to market state-of-the-art technologies that conserve energy and natural resources, protect the environment, and reduce harmful waste for years to come."
The complete findings of this report are immediately available at www.pwcmoneytree.com/
Note to the Editor
Information included in this release or related venture capital investment data should be cited in the following way: "The MoneyTree(tm) Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters" or "PwC/NVCA MoneyTree(tm) Report based on data from Thomson Reuters." After the first reference, subsequent references may refer to PwC/NVCA MoneyTree Report, PwC/NVCA or MoneyTree Report. Charts and tables displaying the data are sourced to "PricewaterhouseCoopers/National Venture Capital Association MoneyTree(tm) Report, Data: Thomson Reuters." After the first reference, subsequent references may refer to PwC/NVCA MoneyTree Report, PwC/NVCA, MoneyTree Report or MoneyTree.
About the PricewaterhouseCoopers/National Venture Capital Association MoneyTree(tm) Report
The MoneyTree(tm) Report measures cash-for-equity investments by the professional venture capital community in private emerging companies in the U.S. It is based on data provided by Thomson Reuters. The survey includes the investment activity of professional venture capital firms with or without a U.S. office, SBICs, venture arms of corporations, institutions, investment banks and similar entities whose primary activity is financial investing. Where there are other participants such as angels, corporations, and governments in a qualified and verified financing round the entire amount of the round is included. Qualifying transactions include cash investments by these entities either directly or by participation in various forms of private placement. All recipient companies are private, and may have been newly-created or spun-out of existing companies.
The survey excludes debt, buyouts, recapitalizations, secondary purchases, IPOs, investments in public companies such as PIPES (private investments in public entities), investments for which the proceeds are primarily intended for acquisition such as roll-ups, change of ownership, and other forms of private equity that do not involve cash such as services-in-kind and venture leasing.
Investee companies must be domiciled in one of the 50 U.S. states or DC even if substantial portions of their activities are outside the United States.
Data is primarily obtained from a quarterly survey of venture capital practitioners conducted by Thomson Reuters. Information is augmented by other research techniques including other public and private sources. All data is subject to verification with the venture capital firms and/or the investee companies. Only professional independent venture capital firms, institutional venture capital groups, and recognized corporate venture capital groups are included in venture capital industry rankings.
MoneyTree Report results are available online at www.pwcmoneytree.com and www.nvca.org.
The PricewaterhouseCoopers Private Equity & Venture Capital Practice is part of the Global Technology Industry Group, www.pwcglobaltech.com. The group is comprised of industry professionals who deliver a broad spectrum of services to meet the needs of fast-growth technology start-ups and agile, global giants in key industry segments: networking & computers, software & Internet, semiconductors, life sciences and private equity & venture capital. PricewaterhouseCoopers is a recognized leader in each industry segment with services for technology clients in all stages of growth.
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The National Venture Capital Association (NVCA) represents approximately 480 venture capital and private equity firms. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy, and support entrepreneurial activity and innovation. According to a 2007 Global Insight study, venture-backed companies accounted for 10.4 million jobs and $2.3 trillion in revenue in the U.S. in 2006. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members. For more information about the NVCA, please visit www.nvca.org.
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