Long-term trend remains positive, even in face of second sequential quarter
decline
SAN FRANCISCO, April 9, 2008 /PRNewswire/ -- The Cleantech Group(TM),
founders of the cleantech investment category and providers of leading
global market research, released today 1Q08 results for cleantech
investments in North America, Europe and Israel totaling $1.25 billion, up
42 percent from the same period a year ago.
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1Q08 represents the second consecutive quarterly decline since the
record third quarter of 2007, yet is an all-time record for a first quarter
period in the cleantech category, and also the first time a first quarter
has exceeded the $1 billion mark.
Cleantech Group recorded 79 transactions in 1Q08, averaging $15.8
million per round, up 53 percent from the $10.3 million average a year ago.
The increase represents the 4th consecutive quarter of double-digit growth
on a year-over-year basis. On a sequential basis, the $1.25 billion
invested in 1Q08 was down 20 percent from what was a very strong 4Q07,
reflecting possible seasonality in the sector.
"While the long-term investment trend shows continued expansion of the
category as a whole, we are seeing contraction in what had been the
market-leading sectors of first generation biofuels and second generation
solar," said John Balbach, Managing Partner, Cleantech Group. "This healthy
minor correction indicates exuberance is giving way to tempered optimism."
Cleantech Group's data suggests two high profile investment waves have
peaked:
-- ETHANOL AND WIND (2005-2006): Powered by investments in US ethanol and
European wind energy companies, the wave peaked in 3Q06 at
$1.52 billion and has steadily declined since.
-- THIN FILM SOLAR (2007): Driven by investments in US and European
thin-film solar companies, this wave peaked in 3Q07 at $1.83 billion
invested, and has since contracted for two consecutive quarters, to
$1.56 billion 4Q07 and $1.25 billion in 1Q08. Thin-film technologies
accounted for approximately two-thirds of investments in solar, while
crystalline technologies accounted for one-third.
Top Five Global Venture Investors (by number of participations):
Company Deals Amount $(mil)
Khosla Ventures 9 deals, including 3
undisclosed deals 205
New Enterprise
Associates 4 deals, total of the rounds 84.4
Kleiner Perkins
Caufield 4 deals, including 1
& Byers undisclosed deal 80
Element Partners 4 deals, total of the rounds 68.9
Israel Cleantech
Ventures 4 deals, total of the rounds 16.6
Source: Cleantech Group, LLC (TM)
North America
In North America, $873 million was invested in 50 companies. North
American cleantech investing increased by 35 percent year-over-year, up
from 20 percent growth between 1Q07 and 1Q06. Investment in 1Q08 was lower
than the record-breaking 3Q07 and 4Q07, while average deal size has
continued to increase for six straight quarters.
Top Five North American Investments (by round size)
Company State Type Amount $(mil)
Range Fuels Colorado Thermochemical
cellulosic ethanol $100
Luminus Massachusetts Solid state lighting $72
Infinia Washington Stirling engines $50
Suniva Georgia Crystalline silicon
solar cell production $50
Boston Power Massachusetts Li-ion batteries $45
Source: Cleantech Group, LLC (TM)
Top Five North American Sectors
Sector Category Amount $(mil) Number of Deals
Biofuels Energy Generation $195 5
Solar Energy Generation $119 8
LED lighting Energy Efficiency $100 5
Materials Materials $96 3
Li-ion Batteries Energy Storage $58 3
Source: Cleantech Group, LLC (TM)
Energy-related cleantech (energy generation, storage, efficiency and
infrastructure) in North America received $678 million, 77.6 percent of the
investment total, across 37 companies. Energy has represented at least
two-thirds the number of North American cleantech deals for the last eight
quarters.
Top Five North American Regions
Region Category Amount $(mil) Number of Companies
West Coast (CA) $282 30
Northeast (MA,PA,VT, DC) $223 15
Rockies/Plains (CO) $113 3
Southeast (GA,VA,FL) $9 4
Northwest (WA) $67M 2
Source: Cleantech Group, LLC (TM)
Both Silicon Valley and Canada exhibited seasonal dips, with relatively
low $116 million and $43 million invested respectively. California
accounted for 32.3 percent of total investments, compared to the previous
six quarters of at least 40 percent. The Boston tech cluster hit a high
mark of $165 million invested.
Europe & Israel
European and Israeli cleantech companies received USD $377 million in
29 transactions. The quarter was up 63.8 percent year-over-year, a record
first quarter, and up 4 percent quarter-over-quarter. The top five
investments accounted for 75 percent of the total, including three solar
companies in Israel and Germany, one wave energy company in the UK, and one
materials company in Sweden. Excluding Israel, European cleantech companies
raised $245 million, representing a lowered 7 percent growth versus a year
ago.
Western Europe, including the UK, was tracked at $217 million invested
in 18 transactions. Israel had a breakout quarter with $132 million across
nine companies, the highest ever for the country, driven mainly by a $105
million investment in solar thermal concentrator company Solel Solar
Systems. This is a 75 percent increase from the previous quarter. Energy
Generation continues to dominate European cleantech investing, accounting
for 80 percent of the $377 million total, and up 75 percent from 4Q07.
M&A and IPOs
Cleantech M&A amounted to 47 transactions completed in 1Q08, up from 39
in 1Q07, but less activity versus the previous three quarters. Airtricity
was the top acquisition, valuing the wind farm company at approximately
$2.1B. Over half of M&As were in energy generation. Cleantech IPOs hit an
all-time low with four recorded, the largest being Shenzhen Topray Solar
listing on the Shenzhen Stock Exchange generating $60M.
Cleantech Index (CTIUS) Performed Well Despite Current Economic
Conditions
The Cleantech Index (CTIUS), composed of 46 companies with a combined
market capitalization of approximately $340 billion, was not immune from
downward pressures on public equities. Despite sliding 13.6 percent in
1Q08, CTIUS outperformed the NASDAQ Composite Index (down 14.1 percent) and
outperformed nearly all the alternative energy indices, which fell in the
18-30 percent range. The S&P 500 was down 9.9 percent and the Russell 2000
Index fell 10.2 percent.
About Cleantech Group, LLC
The Cleantech Group, LLC provides insight, opportunities and builds
relationships that catalyze and accelerate market adoption and
commercialization of clean technologies globally. The Cleantech Group
founded the cleantech investment category and through its membership
services brings together investors, executives, thought leaders, policy
makers, and entrepreneurs to facilitate the growth of cleantech globally.
Visit http://www.cleantech.com.
SOURCE The Cleantech Group, LLC
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Related links:
http://www.cleantech.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20080109/AQW116LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Caroline Venza of Antenna Group Public
Relations, +1-415-977-1939, caroline@antennagroup.com, for
Cleantech Group, LLC
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