Venture Capital Activity in the Clean Technology Industry - September 2015

by Philipp Kuny

  • 15 Sep 2015
  • PE
  • VC
  • NR

Preqin’s Venture Deals Analyst online service contains information on 2,742 venture capital deals completed in the clean technology industry since 2007, with an aggregate deal value of $33.8bn. The industry witnessed significant growth in the number and aggregate value of deals taking place in the period from 2007 to 2011, rising from 256 venture deals with an aggregate value of $2.9bn in 2007, to 425 deals with an aggregate value of $6.3bn in 2011.

However, 2012-2015 YTD has seen an opposing trend with both the number of deals and aggregate deal value decreasing consistently. For example, in 2014 only 240 clean technology-focused venture capital deals took place, with an aggregate deal value of $2.3bn. 2015 YTD appears also to be following this downward trend, with H1 2015 accounting for the lowest aggregate H1 deal value in the industry since recordings started in 2007. The aggregate value of venture capital deals in the clean technology sector, as a proportion of all venture capital financings, has decreased gradually from 7% in 2010, to just 2% so far in 2015.

Preqin’s Venture Deals Analyst shows an increase in the proportion of clean technology venture capital deals taking place in Asia. As seen in the chart above, from 2007 to 2015 the proportion of the number of clean technology venture capital financings taking place in Asia rose from 8% to 20%. Traditionally, North America has dominated the sector, home to 61% of all clean technology deals occurring since 2007. Further dominance is shown by looking at aggregate value of clean technology deals in North America; since 2007 the region has accounted for 76% of the global value of clean technology investments, which is significantly higher than the proportion North America-based venture capital deals constitute across all industries (65%). Europe recorded the second largest number of deals in the sector since 2007, at 623 (23% of the total), in contrast to North America’s 1,684.

The largest clean technology deal completed so far this year has been the $150mn financing round of View, previously Soladigm Inc., by Corning Inc. and Madrone Capital Partners. View is a California-based company developing energy-saving smart windows.

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