Strong M&A and IPO activity in Asia and an increased share of VC
investment in Europe underscore the global growth of cleantech
SAN FRANCISCO, January 6, 2010 – The Cleantech Group, providers of
leading global market research, events and advisory services for the
clean technology ecosystem, along with Deloitte, which provides audit,
tax, consulting and financial advisory services to cleantech companies,
today announced preliminary 2009 results for clean technology venture
investments in North America, Europe, China and India totaling $5.6
billion in 557 deals.
The preliminary total is expected to increase by 5-10% once investors
fully announce their activity (as in previous years), which would make
2009 a record year for number of cleantech VC deals, and approximately
equal with 2007 for total amount invested.
“Record levels of activity from investors, governments and corporations
in 2009 demonstrated that the market for clean technologies continues to
strengthen regardless of any non binding global climate change
agreement,” said Nicholas Parker, Executive Chairman, Cleantech Group.
“In parallel to trying to reach carbon agreements, governments spent the
year earmarking hundreds of billions of dollars for clean technology in
pursuit of economic growth. And in the private sector, about a quarter
of all global venture investment capital was invested in cleantech in
2009-more than software, biotech or any other category.”
Historical Clean Technology VC Investment By Year –
North America, Europe & Israel, China, India
2002 $908,269,409 (164 deals)
2003 $1,259,665,762 (301 deals)
2004 $1,321,871,203 (333 deals)
2005 $1,994,122,434 (381 deals)
2006 $4,519,108,949 (409 deals)
2007 $6,053,192,844 (488 deals)
2008 $8,465,483,542 (567 deals)
2009 preliminary (final to increase) $5,640,928,988 (557 deals)
Source: Cleantech Group (cleantech.com)
2009 venture investment was down 33% from $8.5 billion in 2008,
paralleling the global economic decline of the same period. However,
investment in cleantech declined less than other sectors. While overall
venture capital has retreated back to 2003 levels, according to the U.S.
NVCA, cleantech venture capital has been reset only to 2007 levels.
Preliminary results for 4Q09 indicate venture investment commitments
worldwide of $1.3 billion across 147 disclosed investments, down 27%
from 3Q09, consistent with a seasonal 4Q decline of previous years.
Cleantech venture investment was buoyed by increasing corporate and
utility investment, amid the financial crunch and economic crisis. Wind
energy, which was the sector most heavily invested in by U.S. utilities
in 2008, continued to be a significant investment sector for utilities
in 2009, trailed by investments in solar thermal and PV. In addition to
utilities, among Fortune Global 500 companies, energy and consumer and
industrial products companies made significant investments in the
cleantech sector.
“Utilities continue to bring their capital and access to credit to the
cleantech sector and are playing a key role in getting more projects off
the ground. In 2009 we saw a surge in utility Power Purchase Agreement
(PPA) announcements with Solar Thermal and Solar PV accounting for 80%
of the total PPAs, while Wind saw increased capacity announcements in
the second half of the year aided by the extension of the production tax
credit,” said Scott Smith, U.S. Clean Tech leader for Deloitte.
“Additional project financing came from large corporations whose direct
investments in cleantech increased by 14% in the second half of 2009
compared to the same period in 2008. Leading global utilities and
non-utilities are likely to continue to see cleantech projects as an
attractive investment from an economical and regulatory perspective.”
The top clean technology sector for venture investment in 2009 was
Solar, which accounted for 21% of total clean technology investment,
closely followed by Transportation (20%) and Energy Efficiency (18%).
Solar investment in 2009 was down 64% from the previous year while
investment in 4Q09 (of $187 million) was a new 3 year low for the
sector. Meanwhile, investment in Transportation and Energy Efficiency
reached record levels in 2009, and both now rival Solar for amounts
invested.
In 2008, the Cleantech Group forecasted 2009’s energy efficiency boom.
In 2009, it predicted Energy Efficiency investment in 2010 would eclipse
that in Solar (see 10 Predictions for 2010).
Top Venture Capital Clean Technology Sectors in 2009
Technology Sector | Amount Invested | % of total
– Solar | $1.2 billion | 21%
– Transportation (including electric vehicles, advanced batteries, fuel
cells) | $1.1 billion | 20%
– Energy Efficiency | $1.0 billion | 18%
– Biofuels | $554 million | 10%
– Smart Grid | $414 million | 7%
– Water | $117 million | 2%
Source:
Cleantech Group (cleantech.com)
Four of the top five largest clean technology funding rounds in 2009
were in U.S.-based companies:
Five Largest Clean Technology Rounds in 2009
Company Description Amount Raised
– Solyndra (USA) Thin-film solar (CIGS) $198 million
– A123 Systems (USA) Advanced batteries $100 million
– Landis+Gyr (Switzerland) Smart meters $100 million
– Silver Spring Networks (USA) Smart grid $100 million
– V-Vehicle (USA) Car maker $100 million
Source: Cleantech Group (cleantech.com)
BY WORLD REGION:
North America’s share of clean technology venture capital was down from
72% in 2008 to 62%, a four year low, while the share for Europe and
Israel was up from 22% in 2008 to 29%, a five year high. North America
continued to attract the largest percentage of clean technology venture
capital in 2009, with Europe and Israel in second place, followed by
China (6%) and India (3%).
“A number of factors appear to be at play regarding North America’s
decline in cleantech investment,” said Dallas Kachan, Managing Director
of Cleantech Group. “The drop underscores how cleantech innovation has
continued to globalize. North America’s historic cleantech innovation
and capital advantage may grow less distinct over time.”
EUROPE AND ISRAEL
European and Israeli companies raised $1.6 billion in VC investment in
2009, the second highest year on record. Total investment was down 12%
from 2008 but up 30% from 2007. There were a record 214 deals completed,
surpassing the 212 deals in 2008.
The leading sector was Energy Efficiency, which more than doubled its
share of investment to 19% ($304 million in 38 deals), moving it ahead
of Solar ($292 million in 35 deals).
Countries which registered an increase in VC investment from 2008
included Norway, France, Switzerland, the Netherlands, Belgium and
Denmark. The leading country for investment was the UK ($291 million in
61 deals, a decrease of 21% from 2008), followed by Norway ($234 million
in 12 deals, an increase of 333% from 2008) and Germany ($207 million in
17 deals, a decrease of 47% from 2008).
There were a record number of M&A transactions (143, up 12% from 2008),
although the total value dropped to $9.6 billion (down 32% from 2008).
The $74 million raised in four cleantech IPOs represented the lowest
total since 2004.
CHINA
Chinese companies raised $331 million in VC investment in 2009,
approximately equal to 2008 ($330 million). There were 28 deals, up from
24 in 2008. Investments were spread across a more diverse range of
sectors compared to 2008, with companies in eight industry sectors
raising capital: Energy Generation, Materials, Transportation, Recycling
& Waste, Agriculture, Energy Efficiency, Energy Storage and Water &
Wastewater.
M&A activity in China reached a historic high in 2009, with 29
transactions totaling $5.5 billion. China also accounted for 72% of
global IPO proceeds raised ($3.4 billion raised by 17 companies),
spurred by approval of the Mid-to-Small company board on the Shenzhen
Stock Exchange. There were eleven IPOs in 4Q09 raising a combined $3.1
billion, a record quarterly total.
INDIA
Indian companies raised $190 million in VC investment in 2009, down 13%
from 2008 ($218 million). There were 17 deals, the same number as in
2008.
The clean technology sector which attracted the most investment was
Energy Generation, in particular Biofuels, which accounted for 55% of
the total. There was also significant interest in the
Manufacturing/Industrial category, in particular the Smart Production
segment, as well as Agriculture, with Natural Pesticides in particular.
The most active investors were US-based New Enterprise Associates, a
venture capital firm which invested in Energy Storage and Recycling
companies, and Mumbai-based Aavishkaar Venture Capital Fund, which is
focused on development in rural and semi-urban India.
In 4Q09, the Government of India also approved the launch of the Nehru
National Solar Mission to be deployed at an estimated cost of $932
million.
NORTH AMERICA
North American companies raised $3.5 billion in VC investment in 2009,
down 42% from 2008 and down 17% from 2007. There were 298 deals
completed, slightly down from both 2008 (314 deals) and 2007 (317
deals).
The leading sector was Solar ($774 million in 40 deals), which accounted
for 22% of total investment, closely followed by Transportation ($767
million in 46 deals) and Energy Efficiency ($691 million in 75 deals).
The leading state for investment was California ($2.1 billion invested
in 116 deals, a decrease of 38% from 2008), followed by Massachusetts
($356 million invested in 27 deals, an increase of 21% from 2008) and
Texas ($170 million invested in 19 deals, an increase of 93% from 2008).
There were a record number of M&A transactions (261, up 40% from 2008),
although the total value dropped to $8.4 billion (down 17% from 2008).
The $1.2 billion raised in seven cleantech IPOs represented the lowest
total raised since 2005.
TOP GLOBAL INVESTORS:
Leading clean technology investors in 2009, as measured by the number of
disclosed financing rounds the fund participated in, were:
Full-Year 2009 Top Five Most Active Clean Technology Venture Funds
Venture Capital Firm | # of rounds
– Kleiner Perkins Caufield & Byers (19)
– SAIL Venture Partners (15)
– RockPort Capital Partners (14)
– Khosla Ventures (12)
– Element Partners (11)
– Draper Fisher Jurvetson (11)
Source: Cleantech Group (cleantech.com)
GLOBAL M&As and IPOs:
For full-year 2009, there were an estimated 505 clean technology M&A
transactions, totaling $31.8 billion. In 2008, there were fewer
transactions (394), but a higher total transaction value ($32.7
billion). The final total for 2009 is expected to be ahead of 2008 once
all deals have been reported, which would make it a record year for M&A
transaction value.
4Q09 was the second highest quarter ever for M&A activity, with 129
transactions totaling $13.9 billion. Panasonic’s $4.6 billion
acquisition of Sanyo for its solar and battery businesses is the largest
cleantech-motivated transaction yet recorded. Top M&A transactions in
2009 included:
Top 5 Clean Technology M&A Transactions in 2009
Acquiring Company | Target Company| Amount| Type
– Panasonic| SANYO Electric | $4.6bn| Acquisition
– GCL Solar Energy Technology Holdings| Jiangsu Zhongneng Polysilicon
Technology Development | $3.4bn | Acquisition
– Mainstream Renewable Power |FPC Services| $1.7bn| Divesture
– Statkraft Development | Sodra Vindcraft | $1.5bn| Joint Venture
– Bunge | Moema | $1.4bn | Acquisition
Source: Cleantech Group (cleantech.com)
In 2009, clean technology public offerings totaled an estimated $4.7
billion in 32 IPOs. This represents a year-on-year increase of 11% in
volume and 2% in amount raised. About 72% of money raised in public
markets in 2009 was in Asia, while its average over the three years
prior to that was less than 10%. Almost half (47%) of the companies that
went public were in China.
Top 5 Clean Technology IPOs in 2009
Company | IPO Date | Amount Raised | Exchange
– China Longyuan Electric Power Group (China)| 4Q09| $2.23bn |Hong Kong
– A123 Systems (USA)| 3Q09| $380m| NASDAQ
– China Forestry Holdings (China)| 4Q09 | $200m| Hong Kong
– China Metal Recycling (China)| 2Q09 | $186m | Hong Kong
– STR Holdings (USA) | 4Q09 | $172m | NYSE
Source: Cleantech Group (cleantech.com)
“The rise of cleantech in Asia in 2009 was especially evident in the M&A
and IPO markets,” said Kachan. “Couple this with aggressive clean
technology spending by China and South Korea, and record levels of
patent registration in Japan, and it’s clear 2009 was the year Asia made
significant inroads on its cleantech ambitions.”
About the Cleantech Group, LLC
The Cleantech Group pioneered the clean technology investment category
in 2002. Today, it accelerates the development and market adoption of
clean technologies globally. The company’s worldwide network of
investors, entrepreneurs, enterprises, service providers and
others-representing trillions of dollars in assets-receives access to
capital, investment deal flow, networking, market leading research and
data, sales leads and promotional opportunities. The Cleantech Group
also provides advisory services for large corporations and governments,
publishes leading cleantech sector industry news coverage and produces
the premier Cleantech Forum(r) events worldwide. Details are available
at http://www.cleantech.com.
About Deloitte
As used in this document, “Deloitte” means Deloitte LLP and its
subsidiaries. Please see www.deloitte.com/us/about for a detailed
description of the legal structure of Deloitte LLP and its subsidiaries.