Global Venture Capital & Investment Professionals Going “Greenâ€
Venture capital investors are pouring money into green technologies. A recent study suggests investments are on track to reach record levels this year, increasing by more than 35%. And as visionaries chase investment opportunities in areas like renewable energy, alternative fuels and carbon trading, executive search firm, A.E. Feldman, says the burgeoning industry is looking for super-brokers who can funnel money into their businesses. The firm adds, many private equity firms see tech opportunities slowing for the next five to ten years, and alternative fuel markets are going to be booming.
Global venture capital investments in clean technology companies surged to $1.1 billion in the first six months of 2007 alone, according to research by Ernst & Young and Dow Jones VentureOne. “Clean technology has moved from vision to reality, and it’s now a priority on the CEO agenda of every company from the entrepreneurial growth companies to the multinational market leaders,” says Gil Forer, Global Director of Ernst & Young’s Venture Capital Advisory Group. “The accelerating venture capital investments reflect the growing importance of the sector. A strong innovation pipeline and confidence in the global drivers supporting growth in the clean technology market -such as government policies, consumer awareness, energy prices and concern about carbon emissions-are driving venture capital investment,†he adds.
The United States led investments in clean technology with 71 deals closed and $893 million raised in the first six months of 2007, according to the report. Not far behind, European investments are on pace to meet or exceed last year with 19 deals and $80 million invested. The Ernst & Young, Dow Jones VentureOne research also found that solar power is the main segment focus in the U.S., accounting for $305 million raised in energy generation. Alternative fuels are also on the rise at home and abroad. Wind power, in particular, remains dominant in Europe.
Clean technology’s global share of overall venture capital investments has more than doubled since 2001, the report states. “When a sector sees year-over-year investment growth of 70% and attracts more money than Semiconductors in the U.S., you know it has truly arrived. The premium placed on clean technology companies appears to be the driving force behind the continued surge in investment. With post valuations increasing by 163% over the past three years and liquidity events gaining traction, clean technology looks to gain momentum in the venture community,” adds Jessica Canning, Director of Global Research with Dow Jones VentureOne.
