San Francisco, CA January 17, 2008
$5.18 Billion Over 2007 & Sixth Consecutive Year of Growth; Q407 with 100 Percent Year-Over-Year
The Cleantech Group™, LLC, released today YE2007 and Q407 results for Clean Tech investments indicating the sixth consecutive year of sustained investment growth.
North America (NA) and Europe produced stronger than expected growth in Q407, with total Clean Tech investment across the regions more than doubling year-over-year, from $676 million in Q406 to $1.38 billion in Q407. This brings the level of venture investment in NA and Europe for 2007 to $5.18 billion and historical results for the Clean Tech category as:
2007: $5.18 billion
2006: $3.6 billion
2005: $2.5 billion
2004: $1.8 billion
2003: $1.7 billion
2002: $899 million
2001: $714 million
NA Clean Tech investing in 2007 grew by 38 percent, from $2.87 billion invested in 2006 to $3.95 billion invested in 2007. The number of deals increased by 15 percent, from 233 in 2006 to 268 in 2007. The average deal size increased by 20 percent, from an average of $12.3 million in 2006 to $14.7 million in 2007.
European Clean Tech investing grew by 34 percent, from $915 million in 2006 to $1.23 billion in 2007. The number of deals increased by 56 percent, from 67 in 2006 to 105 deals in 2007. Average deal size in Europe increased by 26 percent from $7.8 million in 2006 to $9.8 million in 2007 (excluding the outliers of the $395 million Airtricity financing in 2006 and the $205 million Isofoton financing in 2007).
North American companies continue to receive the lion’s share of Clean Tech venture investing, with North American-based companies receiving over 3x the investment of European-based companies.
“Despite strong headwinds building in the global economy and tightening credit markets, the medium and long-term value propositions for Clean Tech opportunities sustained the sixth consecutive year with unexpectedly robust growth,” said Nicholas Parker, co-founder and Chairman, Cleantech Group™. “High carbon-based energy prices, global resource competition and increasingly favorable policy frameworks provide stronger than ever fundamental drivers for cleantech investors, and we foresee continued growth over 2008 as the Clean Tech market cycle moves from early adoption to mainstream driver of wealth and job creation.”
2007 Top Five Clean Tech Investment Sectors
The Clean Tech investment category is composed of 11 industry segments. Over 2007, the top five categories by total financings were:
Energy Generation: $2.75 billion; 172 deals
Energy Storage: $471 million; 20 deals
Transportation: $445 million; 20 deals
Energy Efficiency: $356 million; 41 deals
Recycling & Waste: $291 million; 17 deals
Energy Generation remained the forerunner over 2007. Within the NA and European markets, companies based in California received the majority of financing, representing $966 million, a 38 percent increase over 2006 levels.
In Energy Storage, the highest percentage of financings went to companies in the Northeastern United States, receiving $208 million, up from $39 million the year before. In Recycling and Waste, companies based in Western Europe received the largest percentage of total financings at $81 million, up from $17 million in 2006.
Five Largest Clean Tech Rounds in 2007 – Company Country Amount $(mil)
Isofoton SA Spain 205
Brazilian Renewable Energy Co., Ltd. Brazil 200
Project Better Place US 200
Yingli Green Energy Holding Co. Ltd. China 118
HelioVolt Corp US 101
The number of $100 million or larger rounds increased over 2006 levels, indicating increased investor confidence in the category, while 8 of the top ten solar financing rounds since 1999 occurred in 2007. Related in the solar market, a significant drop in the price of materials for silicon PV solar could come in 2008 due to increased refining capacity coming on-line over 2008-2010 timeframe.
China, India, Brazil and Australia
With results for China, India, Brazil and Australia, preliminary results show continued and significant investment growth in 2007. In addition to three successful crystalline silicon IPOs, China attracted investor interest for solar companies, including Yingli Green Energy Holding Co. Ltd., which received $118 million, and Shunda Holdings Co. Ltd., which received $82 million. In India, the top three Clean Tech investments included solar company Moser Baer Photo Voltaic Ltd. with $100 million and wind companies Vestas RRB India Ltd at $55.6 million and Regen Powertech Private Ltd. with $25 million. Interest in the Southern Hemisphere is also increasing, with Brazil securing the largest deal with a $200 million round for sugarcane ethanol-producer, Brazilian Renewable Energy Co.
Public Markets and M&As
The Cleantech Index™ (CTIUS), composed of 47 leading Clean Tech public companies across the full range of sectors within the Clean Tech category (including energy efficiency and renewable energy to advanced materials, air & water purification, water and agriculture), rose 42 percent over 2007. Top IPOs tracked included Iberdrola Renovables in Spain, Cosan Ltd. in Brazil, Polypore Intl Inc. in the U.S., and LDK Solar, Yingli Green Energy Holding Co. and JA Solar Holdings Co., all Chinese crystalline silicon photovoltaics producers. Unlike prior years, the majority of large IPOs shifted from Europe to US exchanges.
Top Clean Tech acquisitions closed in 2007 included targets Horizon Wind Energy LLC (US), SULO GmbH (Germany), Actaris Metering Systems Ltd (Germany), Metal Management Inc. (US), and Airtricity North America (US). The combined value of the M&A transactions was $8.76 billion.