Clean Tech Sector Drives Venture Capital Investment Increases in Q3 2009

Venture capitalists invested $4.8 billion in 637 deals in the third quarter of 2009, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters . Quarterly investment activity increased 17 percent in terms of dollars, but fell 3 percent in number of deals compared to the second quarter of 2009 when $4.1 billion was invested in 657 deals. The increase in dollars invested was driven by several large rounds in the Clean Technology sector, one of which is the ninth largest deal since 1995. The Life Sciences sector (biotechnology and medical device industries combined) also had a solid quarter relative to other industry sectors, leaving Software as the third highest investment sector, a notable decline in industry ranking.

CleanTech Comes of Age – CleanTech Investments Have Reached Record Levels

The report, entitled “Cleantech Comes of Age,” discusses the trends in clean technology from the impact of oil prices to the M&A market and includes data from the MoneyTree Report, a quarterly survey that tracks cash-for-equity investments by the professional venture capital community in private emerging companies in the United States.The increased venture capital investment into the Cleantech sector can be directly associated with the growing concerns about the environment, energy costs and security. Despite signs of a weakening economy, the high investment level and intensified adoption rate of technologies in this sector validates the expected growth predicted by industry experts.