Venture Capital Investment in Clean Technolgies Surges for the Second Straight Quarter

Venture Capital continues to spill into clean tech companies and projects.  For the second consecutive quarter, venture capital in green technologies increased by at least 50%.

According to Greentech Media, $1.9 billion was invested in clean technologies in the third fiscal quarter.  This is up from $1.2 billion in the second quarter, and $836 million in the first quarter.  Furthermore, the number of investment deals increased markedly--the money was invested through 112 deals in the third quarter; conversely, only 85 deals were completed in the second quarter and 59 in the first quarter.

Solar was the leading investment sector, again.  Over $575 million was invested in solar technologies through 29 deals.  The biofuels/biomass sector was next in line to fill its pockets:  $512.8 million was invested in alternative fuel technologies through 17 deals.  Completing the top three investment sectors was the energy efficiency and smart grid industries.  These technologies received $159.7 million in venture capital funds.  Meanwhile, the wind industry was one of the third quarter's venture capital bottom-feeders--this sector received only $19.4 million in funding through six deals.

Steve Vassallo, as Foundation Capital says, "it's nice to see that we've hit an inflection point across all segments of cleantech.  With the economic recovery well on its way, combined with imminent carbon legislation and the acceleration of energy efficiency and renewable portfolio standards, I  expect we're going to see a surge of cleantech IPOs."

Read the full story at Greentech Media:  VC in Greentech Back With a Vengeance