Cleantech Group’s Quarterly Investment Monitor Shows Venture Investment Rebounding from Slow First Quarter, to $1.76 Billion
SAN FRANCISCO–July 3, 2013 – Cleantech Group™, a global market intelligence firm helping executives connect with cleantech innovation, today released preliminary 2Q13 results from its i3 data product. The firm reported that worldwide clean technology venture investment during the quarter totaled $1.76 billion.
Measured by dollars invested, cleantech venture investment grew 56 percent from 1Q13 ($1.1 billion). The number of deals recorded in 2Q13 was 214, which was slightly lower (-13 percent) than the near-record-high 246 deals from the first quarter. The tally may rise again once all investors have submitted all deals. Of these deals, 54 percent (115) were Series B or later rounds, accounting for 90 percent ($1.58 billion) of all money invested during the quarter.
“President Obama’s Climate Action address has reenergized the cleantech industry, and our i3 data—in addition to the strong performance of Solar City and Tesla—underscores our belief that we are turning a corner,” said Sheeraz Haji, Chief Executive Officer of Cleantech Group. “Recent acquisitions of Waze, Power-One and ecoATM provide further reason for optimism, and the breadth of private companies generating material revenue is impressive. Alongside these trends, we continue to track increased activity by large corporates. Indeed, the tide appears to be turning in 2013.”
VENTURE INVESTMENT BY TECHNOLOGY SECTOR & TOP DEALS
The leading sector in 2Q13 by amount invested was Energy Efficiency ($378 million), followed by Biofuels & Biochemicals ($231 million) and Solar ($170 million). Energy Efficiency also led by number of deals, with 45 funding rounds. Transportation (24 deals) came in second by this metric, followed by Solar (19 deals).
The largest transactions during the second quarter were:
- Bloom Energy, a California-based maker of solid-oxide fuel cells for distributed and on-site power generation, raised $150 million from Credit Suisse and E.ON.
- Intrexon, a California-based developer of synthetic biology technology solutions for industries including energy, food, water and medicine, raised $150 million from Third Security and Randall J. Kirk – the company’s Chairman and CEO.
- Skyonic, a Texas-based developer of CO2 mineralization technology for industrial carbon capture and reuse, raised $128 million from BP Ventures, Cenovus Energy, ConocoPhillips, Energy Technology Ventures, and others.
- Xiangtan Electric Manufacturing (XEMC), a China-based manufacturer of efficient drivetrain components for wind turbines and internal combustion engines, raised $112 million from Hunan Hi-Venture Capital.
- Hefei Golden Sun Energy Technology, a China-based developer of solar power projects, raised RMB430 million ($69.5 million) from Jiangsu Akcome Solar Science & Technology.
- Blu Homes, a Massachusetts-based designer of green homes including resource-efficient fabrication and integrated energy efficient systems, raised $65 million from Brightpath Capital Partners and Skagen Group at a $400 million post-money valuation. The company indicated that this is likely to be its last private round of equity financing.
- View, a California-based developer of energy-efficient glass technology for buildings formerly known as Soladigm, raised $60 million from Corning, General Electric, and Khosla Ventures.
- Lyft, a California-based provider of a smart-phone-enabled peer-to-peer taxi service, raised $60 million from Andreessen Horowitz, indicating an intent to use the funding to expand its service within the U.S. and internationally.
- Aligned Energy, a Connecticut-based joint-venture of Skanska and Inertech developing advanced energy-efficient modular data center and data center cooling technology, raised $59.8 million from Inertech, Skanska, and One Equity Partners.
- Lampiris, a Belgium-based renewable energy marketer, raised €40 million ($53 million) from Gimv and Societe Regionale d’Investissement de Wallonie (SRIW).
VENTURE INVESTMENT BY WORLD REGION
North America accounted for 71 percent of the total venture investment, whereas Europe & Israel accounted for 13 percent, and Asia Pacific for 15 percent.
NORTH AMERICA: North American companies raised $1.25 billion, up 74 percent from 1Q13, while the deal count dropped to 136 compared with 1Q13’s 159 (-14 percent). In North America, California again led all states/provinces with $631 million in investment (36 percent share), followed by Texas ($169.6 million, 9.6 percent) and Massachusetts (103 million, 6 percent).
EUROPE AND ISRAEL: European and Israeli companies raised $235.7 million, down 31 percent from 1Q13, while deal count was also slightly lower at 60 deals compared with 73 in 1Q13 (-18 percent). Within the region, the United Kingdom and France led by deal count, with 20 (33 percent of regional total) and 18 (30 percent) cleantech venture deals, respectively.
ASIA PACIFIC: Companies in the Asia/Pacific region raised $267.6 million across 17 deals in 2Q13, a dramatic rebound from a first quarter that saw a similar number of deals, but lower deal values at a $65.4 million total. At 15 percent, the region’s share of global cleantech venture capital was at its highest since 3Q10.
GLOBAL M&As AND IPOs
M&A transactions involving clean technology totaled 54 transactions in 2Q13, of which totals were disclosed for 22 transactions totaling $4.9 billion. In 20 of the 54 transactions, the targets were VCPE-backed companies. Notable transactions for VCPE-backed cleantech companies included Google’s acquisition of California-based, crowd-sourced traffic monitoring startup Waze for $1.3 billion, and Swiss power electronics giant ABB’s $1 billion acquisition of Power-One, a California-based power conversion and power management technology toward a smarter electric grid.
There were four IPOs in the sector raising a total of $280 million in 2Q13, one of which involved a venture-backed company. BioAmber, a maker of bio-based succinic acid for niche chemicals markets, raised $80 million in its debut on the New York Stock Exchange. The company was backed by Naxamber S.A., Sofinnova Capital, Mitsui, and others. The company has since been approved to float some of the shares issued on the Euronext Paris exchange.
In one of the IPOs involving a non-venture-backed company, Hannon Armstrong Sustainable Infrastructure Capital floated its sustainable infrastructure-focused real estate investment trust (REIT) on the New York Stock Exchange, raising $200 million.
About Cleantech Group Inc.
Cleantech Group helps clients find, connect with, and embed innovation. The company’s i3 platform allows subscribers to discover companies and explore cleantech trends strategically with proprietary real-time data. Cleantech Forums bring together thought leaders and innovators in the cleantech and sustainability ecosystem. The company’s advisory services leverage expertise in designing and executing corporate strategies for sustainable growth and innovation sourcing. Details at https://www.cleantech.com.