Clean-technology investment totaled more than $425 million in 69 separate Q3 deals, according to Cleantech Venture Monitor. This represents the largest quarter ever recorded for the clean-tech category, a 15.3% increase from Q2 2005.
In the 3rd quarter of 2005 clean technology captured 8.1% of the $5.263 billion of venture capital invested in North America overall, up significantly from 6.1% in the previous quarter. Clean tech now ranks 6th in size behind software, biotechnology, telecommunications, medical devices and equipment and semiconductors.
“The clean-tech sector continues to garner increased attention from major companies, including the recent announcement by British Petroleum to commit more than $8 billion over the next ten years into alternative and renewable energy, we will continue to see the tremendous growth reflected in the Q3 2005 numbers,” said Nicholas Parker, chairman and co-founder of the Cleantech Venture Network LLC.
The most active investor in Q3 was EnerTech Capital with five investments in the quarter. Chrysalix Energy, Draper Fisher Jurvetson and Kleiner, Perkins, Caufield & Byers participated in a total of three financings each.
Key Q3 2005 stats include:
- The Return of the Northeast: In an upset the Northeast reclaimed its number one position in clean-tech investment with a record setting $141.4 million
- West Coast Depression: West Coast investment slipped to less than 10% of total capital committed to clean technology at $41.0 million, the lowest recorded quarter for the region since Q4 2002
- Energy Continues to Dominate: Q3 energy related investment increased 32.5% from Q2 capturing 59% ($251 million) of total clean-technology investment, 38 of the 69 Q3 investments were energy related
- Water and Materials Doubles: Water Purification and Management ($61.5 million) and Materials Recovery and Recycling ($29 million) both saw increased investments increasing more than 50% respectively
- Materials and Nanotechnology Falter: Investment in materials and nanotechnology declined to $28.7 million in investment over only eight investments
- Environmental IT Slow to Build on 2004 Growth: With one Q3 deal, only 5 investments have been made in the sector in 2005 for a total of under $20 million combined, after a total of $60.3 million was invested into the category in 2004
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