3Q 2011 Global Cleantech Venture Investment Up 12 Percent from Previous Quarter

SAN FRANCISCO – October 5, 2011 – Cleantech Group™, a global research firm focused on cleantech innovation, today released preliminary 3Q 2011 results for clean technology venture investments around the globe, totaling $2.23 billion across 189 deals.

Measured by dollars invested, cleantech venture investment grew 12 percent compared to the previous quarter ($1.98 billion) and was also 23 percent higher than 3Q10 ($1.81 billion). The number of deals recorded in 3Q11 was 189, compared to 179 in 2Q11. Of these deals, 59 percent (111) were Series B or later rounds, accounting for 81 percent ($1.81 billion) of all money invested during the quarter.

“While financing remains constrained, it’s great to see growth in venture activity,” said Sheeraz Haji, CEO of Cleantech Group.  “Energy Storage emerged as our top sector, indicating continued strong interest in advanced technologies for grid-storage as well as for electric vehicles. Global enterprises continue to invest aggressively into cleantech.”

Both the IPO and M&A market were a bit slower in 3Q11 compared to the first half of the year. China remained the top country for cleantech IPOs. 11 of the 14 IPOs in 3Q11 came out of China, with four Chinese solar cell/panel manufacturers raising a total of $812 million. M&A activity remained strong and significantly higher than last year – two giant acquisitions in the water and wastewater sub-sector were the highlights.  Ecolab acquired water treatment service provider Nalco Holdings for $5.4 billion, and Hong Kong billionaire Li Ka-shing’s Cheung Kong Infrastructure Holdings acquired British water utility company Northumbrian Water for $3.9 billion.

Cleantech Group’s Quarterly Investment Monitor Report is supported by Deloitte, Silicon Valley Bank and Wilson Sonsini Goodrich & Rosati.  More information on recent venture activity and transactions is available in i3, Cleantech Group’s web-based market intelligence platform, at http://research.cleantech.com.

 

VENTURE INVESTMENT BY TECHNOLOGY SECTOR

For the first time, energy storage was the leading sector by amount invested ($514 million), followed by solar ($350 million) and energy efficiency ($223 million). Energy efficiency was the most popular sector measured by number of deals, with 34 funding rounds, ahead of solar (33 deals) and energy storage (19 deals). The largest transactions in each of the top four sectors were:

ENERGY STORAGE – $514 million in 19 deals

  • Bloom Energy, a California-based developer of solid-oxide fuel cell technology, raised $150 million from Kleiner Perkins Caufield & Byers, New Enterprise Associates and others
  • Boston-Power, a Massachusetts-based producer of lithium-ion batteries, raised $125 million from Foundation Asset Management, Oak Investment Partners and others
  • ClearEdge Power, an Oregon-based manufacturer of Polymer Electrolyte Membrane (PEM)-based stationary fuel cells, raised $73.5 million from Kohlberg Ventures, Sempra Energy and others

SOLAR – $350 million in 33 deals

  • HelioVolt, a Texas-based developer of CIGS thin-film solar cells, raised $85 million from New Enterprise Associates and SK Group
  • OneRoof Solar, a California-based developer, owner and operator of solar energy generation systems for the residential market, raised $50 million from Black Coral Capital, Spring Ventures and others
  • CaliSolar, a California-based developer of solar cells that allow the use of non-pure silicon in the manufacturing process, raised $26 million from undisclosed investors

ENERGY EFFICIENCY – $223 million in 34 deals

  • Fusion-io, a Utah-based developer of green solutions for servers and workstations, raised $61.5 million from undisclosed investors
  • SynapSense, a California-based provider of data center efficiency solutions, raised $16 million from Emerald Technology Ventures, Sequoia Capital and others
  • Elstat, a UK-based provider of energy management devices for commercial beverage coolers, raised $15 million from Environmental Technologies Fund

TRANSPORTATION – $177 million in 15 deals

  • Coda Automotive, a California-based manufacturer of electric vehicles, raised $66 million from Aeris Capital, Angeleno Group and others in two investment tranches
  • INRIX, a Washington-based provider of a predictive traffic services and solutions, raised $37 million from Kleiner Perkins Caufield & Byers and August Capital
  • SmartDrive Systems, a California-based provider of fleet management solutions, raised $10 million from New Enterprise Associates and Oak Investment Partners

 

VENTURE INVESTMENT BY WORLD REGION

North America accounted for 76 percent of the total amount invested, Asia Pacific for 14 percent and Europe & Israel for 10 percent.

NORTH AMERICA: North American companies raised $1.69 billion, up 17 percent from 2Q11 and up 59 percent from the same period a year ago. The total of 128 deals disclosed marked a record high for cleantech VC rounds in the region.

In North America, California led the way with $654 million investment (39 percent share), followed by Massachusetts ($176 million, 10 percent) and New Mexico (175 million, 10 percent). Canada saw a drop in terms of VC funding with $33 million invested across 8 deals.

The largest deals included Sundrop Fuels ($175 million), Bloom Energy ($150 million) and Boston-Power ($125 million).

EUROPE & ISRAEL: European and Israeli companies raised $230 million, down 34 percent from 2Q11, and down 32 percent from the same period a year ago. There were 40 deals, down from 44 in the previous quarter. The largest deals were for Nexeon ($65 million), Elstat ($15 million) and EcoEridania ($14 million).

ASIA PACIFIC: Asian companies raised $303 million in 21 disclosed rounds. India ranked third after the United States and United Kingdom in amount raised, while China ranked third in number of deals globally. The largest deals were for Soma Enterprise ($110 million), Champions of the Earth ($52 million) and Changxing Wind Power ($47 million).

 

GLOBAL M&As AND IPOs

There were 14 clean technology IPOs during the quarter, totaling $1.70 billion, slightly down from the $1.99 billion in 2Q11. The largest IPO was for Huaneng Renewable Energy, a subsidiary of China’s Jingyuntong Technology, which raised $395 million on the Shanghai Stock Exchange. Also notable were three more IPO filings from U.S. biofuels companies: Renewable Energy Group, Fulcrum Bioenergy and Mascoma.

Clean technology M&A totaled 85 transactions in 3Q11, of which totals were disclosed for 27 transactions totaling $11.8 billion. Transactions were slightly down compared to 2Q11, which saw 89 transactions (31 of disclosed value) totaling $13.0 billion. The largest deal was Ecolab’s $5.4 billion acquisition of Nalco Holding, a leading provider of water treatment and process improvement services, chemicals and equipments.

 

TOP GLOBAL VC INVESTORS

3Q11 Most Active Cleantech Venture Investors

Investor

# of Rounds

Companies

Sectors Involved

Draper Fisher Jurvetson

(Including DFJ Network)

10

Power Assure

Aegis Petro

Scientific Conservation

Vitriflex

Bharat Light and Power

Ambiq Micro

EdeniQ

Enevate

Glycos Biotechnologies

Oasys Water

Energy Efficiency

Water & Wastewater

Materials

Biofuels & Biomaterials

Energy Storage

Other Renewables

Kleiner Perkins Caufield & Byers

6

Bloom Energy

INRIX

Clean Power Finance

Aquion Energy

Siluria Technologies

Aquion Energy

Energy Storage

Transportation

Solar

Materials

New Enterprise Associates

5

Bloom Energy

HelioVolt

Boulder Wind Power

Leyden Energy

SmartDrive Systems

Energy Storage

Solar

Wind

Transportation

Chrysalix Energy Venture Capital

4

HydroPoint Data Systems

GaN Systems

ReliOn

The NanoSteel Company

Water & Wastewater

Energy Efficiency

Materials

Energy Storage

Source: Cleantech Group (cleantech.com)

Nothing herein is intended to be nor should be construed as investment advice. Cleantech Group, LLC does not recommend that any financial product should be bought, sold or held by you, and nothing in this document should be construed as an offer, nor the solicitation of an offer, to buy or sell securities by Cleantech Group, LLC or our sponsors. You should not make any investment decision without consulting a fully qualified financial adviser.

 

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