Global ‘cleantech’ investment drops amid downturn -- survey

Global venture capital investment in “clean” technology companies such as renewable energy ventures dropped sharply in 2009 amid the economic downturn, totaling $5.6 billion compared with $8.5 billion in 2008, according to a survey by the Cleantech Group and Deloitte.

The $5.6 billion total encompasses investment in North America, Europe, India, China and Israel, according to the survey, although the Cleantech Group and Deloitte say the 2009 total will rise by perhaps 5-10 percent as investments are fully announced.

While investment has dropped, the total number of deals for 2009, at 557 announced thus far, is about the same as last year. Also, the Cleantech Group and Deloitte said the sector hasn’t been battered as badly as some others.

“2009 venture investment was down 33% from $8.5 billion in 2008, paralleling the global economic decline of the same period. However, investment in cleantech declined less than other sectors. While overall venture capital has retreated back to 2003 levels, according to the U.S. NVCA [National Venture Capital Association], cleantech venture capital has been reset only to 2007 levels,” the report states.

The report finds that solar technology attracted the most investment in 2009, accounting for 21 percent of the total. A solar company also had the biggest single funding round – California solar panel maker Solyndra, Inc. attracted $198 million.

Solyndra’s fundraising allowed it to complete an agreement for a $535 million loan guarantee from the Energy Department to construct a new manufacturing plant, the first guarantee issued under a program authorized in a 2005 energy law to support low-emissions energy projects and technologies.