SAN FRANCISCO – January 7, 2011 The Cleantech Group™, providers of leading global market research, events and advisory services for the cleantech industry, today released preliminary 4Q 2010 results for clean technology venture investments in North America, Europe, China and India, totaling $7.8 billion across 715 deals.
Cleantech venture investment was up by 28 percent compared to 2009 ($6.1 billion) making 2010 the second highest year for investment after 2008 ($8.8 billion). The number of deals was 715, a new annual record, ahead of the previous high (624 deals) recorded in 2009.
Venture investment in 4Q10 totaled $1.61 billion, down by 17 percent from 3Q10 ($1.95 billion) and the second consecutive quarterly decline. There were 180 deals, the same number as in 3Q10.”The strong increase in clean technology venture activity in 2010 was also paralleled by record activity in the IPO and M&A markets” said Sheeraz Haji, CEO of Cleantech Group. “We believe continued growth in Asia and the ongoing push for resource efficiency will make 2011 a record year for cleantech innovation financing.”
VENTURE INVESTMENT BY TECHNOLOGY SECTOR
The top clean technology sector for venture investment in 2010 was Solar, which accounted for 24% ($1.83 billion) of the total, followed by Transportation (17%, $1.35 billion) and Energy Efficiency (14%, $1.05 billion). Measured by number of deals Energy Efficiency was the most popular sector (21% share, 151 deals) followed by Solar (16% share, 117 deals).
VENTURE INVESTMENT BY WORLD REGION
North America accounted for 68 percent of the total invested, while Europe and Israel accounted for 21 percent and Asia for 10 percent. Measured by number of deals North America accounted for 55 percent of the total, while Europe and Israel accounted for 35 percent and Asia for 10 percent. During the second half of the year there was a noticeable increase in the share of investment taken by the Asia region, which accounted for 17% of all venture investment in 2H 2010, with Europe on 23% and North America on 59%.
North American companies raised $5.28 billion, up 45 percent from 2009 ($3.65 billion). The total of 391 rounds was a new record, up from 317 in 2009. The largest deals were for: California-based electric vehicle infrastructure company Better Place which raised $350 million in a Series B round led by HSBC and also including Morgan Stanley Investment Management, Lazard Asset Management, Israel Corp., VantagePoint Venture Partners, Ofer Hi-Tech Holdings, Morgan Stanley Principal Investments, and Maniv Energy Capital; Solyndra, the California-based thin film company, raised $175 million from existing investors instead of following through with its planned IPO; and BrightSource Energy, the California-based developer of utility-scale solar thermal power plants, raised $150 million in Series D funding from new investors Alstom and the California State Teachers Retirement System (CalSTRS) as well as existing investors. California led the way in 2010 with investment of $3.0 billion (58% share), followed by Massachusetts ($398 million, 8%) and Texas ($254 million, 5%).
European and Israeli companies raised $1.62 billion, down 7 percent from 2009 ($1.75 billion). There were 247 deals, up from 230 in 2009. The three largest deals were for: Landis+Gyr; a Swiss smart metering company, which raised $165 million; e-Gen, which was founded in 2009 as a wind project developer to take advantage of the new UK feed-in tariff, which raised $79 million; and FleetMatics, a UK-based fleet management and tracking company, which raised $68 million. The UK was top of the country league table, with $450 million in 88 deals, followed by France, with $297 million in 52 deals and Switzerland with $165 million in just one deal.
Asian companies raised $771 million in 69 disclosed rounds. The amount invested was 18% higher than in 2009, although the number of deals was about the same (72 deals in 2009). The three largest deals were for: Nobao Renewable Energy Holdings, a Shanghai-based developer of ground source heat pump technology, which raised $100 million from Silver Lake; eHi Car Rental, a Shanghai-based car sharing company, which raised $70 million in a deal led by Goldman Sachs Group and also including CDH Ventures, Ignition Partners, and Qiming Venture Partners; and Korean electric car company CT&T, which raised $60 million from ELKF Investment Fund.
The leading country globally for venture investment was the U.S. ($4.97 billion in 360 companies), followed by China ($479 million in 46 companies) and the UK ($450 million in 88 companies).
GLOBAL M&AS AND IPOS:
It was a record year for cleantech IPOs globally, with 93 companies raising a combined $16.3 billion during 2010. The largest IPO was for Enel Green Power, the renewable energy unit of Italian utility Enel, which raised $3.6 billion on the Madrid Stock Exchange. The vast majority of global activity however was in China, which accounted for 68% (63) of the IPOs completed and 61% ($10.0 billion) of the total amount raised.
The focus of the IPO activity in China was the small to medium sized board on the Shenzhen Stock Exchange, known as ChiNext. Cleantech Group recently released a report profiling the remarkable rise of ChiNext since it its launch in October 2009 (see ChiNext One Year On: Now the most active exchange for cleantech IPOs globally).The final quarter of 2010 was the most active quarter ever for cleantech IPOs, with 30 companies raising a combined $8.3 billion. The two largest IPOs of the year took place in 4Q10. These were Italy’s Enel Green Power (see above) and China Goldwind, the Xinjiang-based wind turbine manufacturer, which raised $917 million on the Shenzhen Stock Exchange.
Clean technology M&A totaled an estimated 716 transactions in 2010, of which totals were disclosed for 203 transactions totaling $36.0 billion. The total number of transactions was up 37% compared to 2009, while the total invested was up by 9%. Switzerland-based power and automation technology company ABB was involved in two of the three largest acquisitions during the year. In 2Q10 it acquired U.S.-based software maker Ventyx for more than $1 billion to provide it with broader access to the utility enterprise management market and in 4Q10 it acquired Baldor Electric Company, a U.S.-based manufacturer of high-efficiency industrial motors, in a cash transaction valued at approximately $4.2 billion. The number of joint ventures (which are also included in the M&A totals) increased strongly, reaching 161 deals worth a combined $14.3 billion, up from 40 deals in 2009 worth $4.0 billion. The largest deal was between Shell Oil Company and Brazilian sugar and ethanol producer Cosan, who set up a $12 billion Brazilian biofuels joint venture.
TOP GLOBAL VC INVESTORS
2010 Most Active Cleantech Venture Investors (Preliminary Data)
|Venture Capital Firm||# of rounds|
|Chrysalix Energy Venture||16|
|Draper Fisher Jurvetson||16|
|Carbon Trust Investment Partners||12|
|Kleiner Perkins Caufield & Byers||12|
Source: Cleantech Group (cleantech.com)
About the Cleantech Group, LLC
The Cleantech Group, the leading global research and advisory firm focused on cleantech innovation, pioneered the clean technology category in 2002. Today, it helps its clients make critical business decisions by providing the latest market intelligence through subscription-based research, custom advisory services, and global networking events. The company’s growing international client base includes global corporations, investors, entrepreneurs, governments, and service providers. The company also produces the premier Cleantech Forum® and Focus™ events worldwide, including upcoming events in Paris, Boston, New York, Chicago, and Los Angeles. Details are available at http://www.cleantech.com.
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