As Oil Prices Take Off, VC Investments in Solar Zoom 133% in a Single Year
by Stacy Feldman - May 7th, 2008
It’s good times for the clean energy technology sector. Expect them to get better -- especially if high fossil fuel prices stick.
That’s the conclusion of a new report by PricewaterhouseCoopers, aptly titled: Cleantech Comes of Age.
The rundown: In 2007, venture capitalists poured $2.2 billion into cleantech start-ups -- a 45 percent jump from '06 and far more than expected.
Solar stole the show.
The sub-sector raked in a total of $600 million in investments in 39 deals -- a 133 percent leap over last year. And solar installations rose too, by 120 percent.
Wind had a solid year. VC investment grew to $115 million in nine deals. That’s up from $10 million and three deals in '06. And wind turbine installations grew 45 percent.
Installation and production of biofuels (considered by most to be "alternative" energy, not clean energy) rose 32 percent. That’s a notable drop over last year and more proof that America may be losing its appetite for turning corn into motor fuel.
Check out Earth2Tech’s clever Biofuels Deathwatch map to follow the story. And who knows, actual clean energy may end up luring the capital that the biofuels sector keeps shedding.
PricewaterhouseCooper pegged the clean tech sector’s rise to the leap in oil prices. Have a look at the chart below, courtesy of PricewaterhouseCooper, via VentureBeat.
The trend is clear: When barrel prices have jumped so has VC investment in cleaner sources.
But don’t be fooled. The surge in cleantech isn’t solely dependent on high energy prices.
At least that's what Tracy Lefteroff, a global managing partner at PricewaterhouseCoopers, contends:
The increased venture capital investment into the Cleantech sector can be directly associated with the growing concerns about the environment, energy costs and security.
And the sector isn’t going anywhere soon, he says:
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.
Still, every party needs a pooper. Here's CNET’s Green Tech blog on the study:
Although venture capital-backed companies can generate a lot of excitement and buzz, the amount of money that goes into start-ups is very small compared with corporate labs.
It sees companies like Shell, BP, Dow and General Electric -- and of course the US government -- as being the main drivers in the push to make clean energy prices competitive with fossil fuels.
Fair point, and largely true.
But hold up. The cleantech sector has managed to snatch up some of the most accomplished individuals from the dotcom world -- all of whom are aiming to chance upon the Google of cleantech.
Have a look at Earth2Tech’s list of the top 25 who made the switch.
And speaking of 25, that’s how many US states now require utilities to power up with renewables, with a national price on carbon on the way.
That's creating a huge demand for rapid cleantech innovation in America. And venture capital-backed companies seem a safe bet for helping us meet that demand, no?
They've changed the world before. Why not now, in cleantech?
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tru solutions no jokes
There is a way to solve a lot of our problems of oil, feed the masses of starving people also lower feed cost. It will take between 7000 -35000 acres, do you have a clue? I’ve written over a 50 page, business plan and its’ just a ruff draft. My businness plan involves the U.N., World Food Program, and the energy department plays a part. I plan to invite the Governer of New Mexico MR. Richardson as well as a few other investors or anyone that wants to help the world and solve our oil dependence can take part. Just come a talk to me !! There’s a lot of money and peoples lives that to be enhanced so come on board early or lose out !! No jokes, No games, send an email micro2macrobiz@gmail.com to set an appointment, I'll pay for lunch if you’re a serious VC firm, people connected to them, or one of the organizations mentioned above. Now the ball is rolling and it’s not going stop until the richs and success come forth. Then we will also see famine diminished and oil dependance eliminated. No joke no game's rapid return and grand economic benefit to this great nation and our allies!!
tru solutions no jokes
there a way to sove a lot of or problems of oil,awell feed the masses or starving aswell as lower feed cost . it will take between 7000acres -35000 acres do you have a clue . Ive writtenover a 50 page business plan and it just a ruff draft. it involve the U.N -world food program-the engery department GOV of New mexico MR Richardson aswell a afew other investor anyone that want to help the world and solve our oil dependence .Just come a talk to me !! your going have to sign a confidentiality contract ther s a lot of money and peoples lives that will be effected so come on board early or lose out !! nojokes no game send a email set a appointment i'll pay for the lunch if your serious VC firm or people connected to them or related feild are the main one that are of use now the balls rolling and it not going stop until richs ,and success come forth.then we will also see famine has been carteled!!No joke no game's rapid return and grand economic benefit to this great nation and our allies!!
tru solutions no jokes
there a way to sove a lot of or problems of oil,awell feed the masses or starving aswell as lower feed cost . it will take between 7000acres -35000 acres do you have a clue . Ive writtenover a 50 page business plan and it just a ruff draft. it involve the U.N -world food program-the engery department GOV of New mexico MR Richardson aswell a afew other investor anyone that want to help the world and solve our oil dependence .Just come a talk to me !! your going have to sign a confidentiality contract ther s a lot of money and peoples lives that will be effected so come on board early or lose out !! nojokes no game send a email set a appointment i'll pay for the lunch if your serious VC firm or people connected to them or related feild are the main one that are of use now the balls rolling and it not going stop until richs ,and success come forth.then we will also see famine has been carteled!!No joke no game's rapid return and grand economic benefit to this great nation and our allies!!
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