NVCA President Advises Caution for Venture Investors
NEW YORK, Nov. 28 /PRNewswire-FirstCall/ -- CleanTech investments by US
venture capital firms reached $2.6 billion from 168 deals in the first
three quarters of 2007, according to data from Thomson Financial and the
National Venture Capital Association. This level of investment represents
the highest dollar volume ever, exceeding full-year 2006 investment dollar
volume which reached $1.8 billion from 180 deals. Several large investments
in companies outside of the US contributed significantly to these levels.
US firms' investment in CleanTech companies has progressively increased
year over year. The year to date 2007 dollar volume represents a 46%
increase over full year 2006 dollar volume. Additionally, 2007 deal totals
for the first 9 months lag last year's total record breaking number by only
12 deals.
Annual Clean Tech Investments Volume Analysis
Investment
Year Deals ($mil)
2000 63 590.1
2001 85 392.8
2002 91 454.9
2003 81 235.4
2004 88 507.7
2005 100 532.7
2006 180 1,779.6
2007* 168 2,604.9
*2007 data through 9/30/2007
Source: Thomson Financial/NVCA
NVCA president, Mark Heesen expressed a cautious optimism regarding the
CleanTech space:
"There are major opportunities for venture capitalists to totally
reshape the energy market throughout the world as governments, consumers,
and companies are demanding innovation in this space," said Heesen.
"However, as has been demonstrated in the IT and life science arenas,
investing in new technologies can be fraught with pitfalls and is not for
the inexperienced or the faint of heart. Prudent, long-term,
knowledge-based investment in cutting edge technologies has been the
hallmark of venture capital in the past and should be the mantra in the
CleanTech space as well. Short-term 'tourists' should steer clear."
The majority of all dollars invested by US firms went into US companies
in the first nine months of 2007. In total there were 149 investments worth
$1.7 billion in US companies, representing an average deal size of $11.4
million. The three largest CleanTech investments by US firms in 2007 were
in overseas companies including a $500 million investment by two
undisclosed firms in Delta Hydrocarbon BV, a Netherlands based company with
a focus in oilfield- production enhancement, a $200 million investment in
Brazil's Brazilian Renewable Energy Co., and a $118 million investment in
China's Yingli Green Energy Holding Company, producer of vertically
integrated photovoltaic solar products.
US Firm CleanTech Investments by Company Location (1Q-3Q 2007)
Average
Investment Investment
Company Nation Deals ($mil) ($mil)
United States 149 1,692.6 11.4
Netherlands 1 500.0 500.0
Brazil 1 200.0 200.0
China 1 118.0 118.0
India 2 34.5 17.3
United Kingdom 4 31.0 7.7
Canada 3 10.9 3.6
Germany 4 6.9 1.7
Austria 1 5.8 5.8
Israel 1 4.8 4.8
Mauritius 1 0.4 0.4
Total 168 2,604.9 15.5
Source: Thomson Financial/NVCA
Within the United States, the majority of US CleanTech investment
dollars and deals flowed into California where 68 deals accounted for
$726.2 million investment dollars. Massachusetts companies had the next
highest level of investment with $292.6 million from 11 deals. Texas closed
out the top three states with $149.4 million investment dollars from 8
deals.
US Firm CleanTech Investments by State (1Q-3Q 2007)
Average
Investment Investment
Company State Deals ($mil) ($mil)
California 68 726.2 10.7
Massachusetts 11 292.6 26.6
Texas 8 149.4 18.7
Washington 10 121.3 12.1
New Mexico 4 96.0 24.0
Georgia 4 49.1 12.3
Kentucky 1 37.6 37.6
Colorado 2 32.3 16.1
D. of Columbia 1 32.0 32.0
Iowa 3 28.0 9.3
US Total 149 1,692.6 11.4
Source: Thomson Financial/NVCA
Solar energy was the biggest sub-sector for CleanTech investments in
the first nine months of 2007. There were 35 solar related deals accounting
for $664.6 million in investment dollars and an average deal size of $19.0
million. Alternative energy (excluding wind, solar, geothermal, and co-
generation) accounted for 33 deals and $317.5 million, followed by power
supplies industries with 25 deals accounting for $183.9 million.
US Firm CleanTech Investments by Industry (1Q-3Q 2007)
Average
Investment Investment
Industry Deals ($mil) ($mil)
Solar Related Energy 35 664.6 19.0
Alternative Energy, incl. Nuclear
(excl. wind, solar, geothermal,
co-generation) 33 317.5 9.6
Power Supplies 25 183.9 7.4
Pollution and Recycling Related 19 146.4 7.7
Wind Energy 4 62.9 15.7
Source: Thomson Financial/NVCA
The largest investment made in a domestic company by a domestic firm in
the first nine months of 2007 was the $115 million invested in GreatPoint
Energy, Inc., a Cambridge, MA based company, across two investment rounds.
GreatPoint operates production plants that convert coal and biomass into a
product called bluegas, which aids in the power generation, industrial,
heating, and chemical sectors. Investors in this company in the first three
quarters of 2007 include Kleiner Perkins Caufield & Byers, Draper Fisher
Jurvetson, Dow Chemical Company, Advanced Technology Ventures, Khosla
Ventures, and other undisclosed investors. The next largest investment in a
CleanTech company was a $77 million investment round in Austin, TX based
Heliovolt Corp. Heliovolt develops and markets technology for depositing
thin photovoltaic platform surfaces used to generate electricity from
sunlight on conventional construction materials. Venture investors in the
company included Morgan Stanley Private Equity, Yellowstone Capital,
Paladin Capital Management, New Enterprise Associates, and additional
undisclosed investors.
The top US firms in terms of number of deals from January through
September of 2007 were Khosla Ventures, participating in 14 deals valued at
$68.4 million, Draper Fisher Jurvetson, investing in 14 deals valued at
$38.5 million, and Kleiner Perkins Caufield & Byers, with 11 deals valued
at $76.8 million. All three firms are headquartered in Menlo Park, CA.
The National Venture Capital Association (NVCA) represents
approximately 480 venture capital and private equity firms. NVCA's mission
is to foster greater understanding of the importance of venture capital to
the U.S. economy, and support entrepreneurial activity and innovation.
According to a 2007 Global Insight study, venture-backed companies
accounted for 10.4 million jobs and $2.3 trillion in revenue in the U.S. in
2006. The NVCA represents the public policy interests of the venture
capital community, strives to maintain high professional standards,
provides reliable industry data, sponsors professional development, and
facilitates interaction among its members. For more information about the
NVCA, please visit http://www.nvca.org.
Thomson Financial, with 2006 revenues of US$2 billion, is a provider of
information and technology solutions to the worldwide financial community.
Through the widest range of products and services in the industry, Thomson
Financial helps clients in more than 70 countries make better decisions, be
more productive and achieve superior results. Thomson Financial is part of
The Thomson Corporation (http://www.thomson.com), a global leader in providing
essential electronic workflow solutions to business and professional
customers. With operational headquarters in Stamford, Conn., Thomson
provides value-added information, software tools and applications to
professionals in the fields of law, tax, accounting, financial services,
scientific research and healthcare. The Corporation's common shares are
listed on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).
SOURCE Thomson Financial; National Venture Capital Association
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Related links:
http://www.thomsonfinancial.com
http://www.nvca.org
CONTACT:
Emily Mendell, NVCA, +1-610-565-3904,
emendell@nvca.org; Matthew Toole, +1-646-822-7560,
matthew.toole@thomson.com, or Sandy Anglin, +1-646-822-7334,
sandy.anglin@thomson.com, both of Thomson Financial
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