Venture Capital Investment in Renewable Energy Exceeds $2.8B in Q3 2008

Greentech Media Forecasts Record-Setting Investment Pace to Stay Strong Through 2009

Greentech Media Inc. released the most recent quarterly data showing that venture capital investment in green energy technologies exceeded $2.8 billion in the third quarter of 2008, far exceeding any previous quarter on record. Investment in solar technology led the VC charge this quarter with more than $1.5 billion invested in 26 venture capital financing rounds. Renewable energy sectors, such as transportation and the smart grid, also received record amounts of funding. Venture firms continue to invest in biofuels such as cellulosic ethanol and algae with more than $150 million directed towards these new feedstocks and technologies. Eric Wesoff, Senior Analyst at Greentech Media, commented that "Despite less than optimal market conditions, there are a number of renewable energy IPOs filed and on-deck. Investors are looking for 2009 and 2010 to be the years of renewable energy exits". According to Wesoff "early stage financing is still alive. VCs and angel investors are still investing in new innovative technologies. Not as much as in 2005 to 2007, but angel and Round A financings are still represented." Wesoff also added that he sees "these investment numbers staying steady through 2009 as investors continue to nurture their current portfolio and look for new opportunities".

Total Q3 VC investment by sector:
Solar $1,585.8M in 26 deals
EE, DR and Smart Grid $272.14M in 14 deals
Geothermal $216.5M in 4 deals
Automotive, Transport $193M in 8 deals
Water Technology $182.46M in 10 deals
Ethanol and Biofuels $150.2M in 8 deals
Wind Energy $140.93M in 8 deals
Batteries and Fuel Cells $49.4M in 4 deals
Carbon and Energy Storage $29.9M in 3 deals
Green Building $28.76M in 3 deals
Green IT and Lighting $27M in 4 deals
Others $10.8M in 3 deals
Total $2,886.89M in 95 deals
Source: Greentech Media

For the full article go to http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20081001005167&newsLang=en