Growthink Blog

Cleantech Attracts Ongoing Attention from the Investment Community

Print
Categories:

Clean technology (“cleantech”) is one of the fastest growing areas of investment within the venture capital and private equity community, showing constant growth since 2003 and accounting for 7.4% of total venture investment in 2007. According to data compiled by Cleantech Group, LLC, the 3rd quarter of 2008 saw $2.6 billion invested in 158 deals in the sector, with total investments in 2008 projected between $7.6 and $8.1 billion. This represents 30% growth in comparison to 2007’s $6.01 billion, $2.2 billion of which was invested in U.S. companies.

The cleantech category is comprised of a variety of subsectors that represent products, services, and technologies created to reduce greenhouse gas emissions, develop energy independence, promote energy efficiency, and conserve natural resources. Subsectors within the category include:

- Solar, wind, biofuels and geothermal energy generation
- Infrastructure to support alternative energy generation
- Energy storage (batteries, fuel cells, etc.)
- Agricultural productivity and natural pest control technologies
- Materials and manufacturing processes requiring less resource intensive inputs
- Pollution control, recycling, clean coal, and wastewater/water technologies

Despite the economic downturn, cleantech is one of the only sectors still projecting investment growth, particularly once President Elect Obama takes office tomorrow. Obama’s energy plan calls for a $150 billion investment in clean technologies over the next 10 years, aggressive targets for greenhouse emissions reductions, and programs to promote energy efficiency, low-carbon biofuels, and renewable energies. Obama has also called for a national Renewable Portfolio Standard (RPS) requiring that utilities generate 10 percent of electricity from renewable sources by 2025. New mandates, tax incentives and the recent Energy Independence and Security Act of 2007 will continue to drive domestic growth within the sector.

Internationally, interest in cleantech has grown in countries around the world, particularly in the Middle East, Europe, and China. Sovereign wealth funds from countries in the Middle East were involved in six of the top ten largest financings within the cleantech sector in the 3rd quarter of 2008. More specifically, countries such as Qatar have been raising funds solely for cleantech, such as the recent $396 million Qatar Investment Authority cleantech fund. The European Union has targeted 20% of its energy to be derived from renewable resources by 2020 and China has targeted 15% under its Circular Economy Law. As new regulations are put into effect globally, particularly in emerging markets such as China, demand for innovative energy sources and cleantech solutions will grow as existing resources are depleted.

Through its consulting and capital raising advisory services, Growthink has worked with innovative emerging growth companies across all of the various cleantech sectors. Through this unique combination, Growthink is able to provide cleantech entrepreneurs with the perspective required to identify and capitalize on prevailing trends in their respective markets and industries.


Learn More

If you are an entrepreneur or a potential investor seeking more information about investment opportunities within cleantech, contact us at (800) 260-6630.  


Share this article:


Matt West says

Although I am a champion of all things Green, individual sectors like renewable energy face considerable challenges. Credit markets have dried up and the declining value of oil has only added to macroeconomic headwinds faced by the renewable energy sector. As a consultant and the author of The Green Market (http://thegreenmarket.blogspot.com) I know that cleantech has astronomical growth potential, but as an investor, I understand there are caveats to reaping a profit from Green.
Posted at 4:42 pm

Most Popular
New Videos

"Business Plan
SHORT-CUT"

If you want to raise capital, then you need a professional business plan. This video shows you how to finish your business plan in 1 day.

CLICK HERE
to watch the video.

"The TRUTH About
Venture Capital"

Most entrepreneurs fail to raise venture capital because they make a really BIG mistake when approaching investors. And on the other hand, the entrepreneurs who get funding all have one thing in common. What makes the difference?

CLICK HERE
to watch the video.

"Brand NEW
Money Source?"

The Internet has created great opportunities for entrepreneurs. Most recently, a new online funding phenomenon allows you to quickly raise money to start your business.

CLICK HERE
to watch the video.

"Old-School Leadership
is DEAD"

"Barking orders" and other forms of intimidating followers to get things done just doesn't work any more. So how do you lead your company to success in the 21st century?

CLICK HERE
to watch the video.

Blog Authors

Jay Turo

Dave Lavinsky