Upward Cleantech Investments

Just finished my weekly article on ICIS Chemical Business (this one about glycerine) so I have time to blog for the next 2 days. I am also hoping to post my last three BIO interviews (Verdezyne, DNP Green and Allylix) and one sustainability interview with Eastman.

Before all that, here’s a recent report from Ernst & Young about the comeback of venture capital investments in clean technology companies. According to the consulting firm, 2Q VC investment in cleantech companies this year hit $1.5 billion in 68 financing rounds, a 63.8% increase in capital and an 4.6% increase in deals compared to Q2 2009. This was said to be the highest level of venture funding for cleantech since Q3 2008.

The second quarter was marked by financing activity in electric vehicles. According to Ernst & Young, the momentum in EVs was underscored by President Obama’s speech at the Smith Electric Vehicles factory in Kansas City, MO, on July 8 where he announced that the US share of the world market for advanced batteries for electric and hybrid vehicles could grow by 20%, up to 40% of the world’s market, by 2015.

More on advanced batteries in later post (I’ve been meaning to do this for several weeks now).

Meanwhile, five of the top 10 VC deals in Q2 2010 were in the solar segment, which received $438.8 million, an increase of 182.6% compared to Q2 2009.

The less capital intensive energy efficiency sector continued to receive the most deal activity. In Q2 2010 this cleantech category received $199.3 million dollars in 15 financing rounds, according to Ernst & Young.

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