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Cleantech segment continues to grow27/02/2007. Source: AltAssets. 
 The cleantech segment across China, Europe, Israel, and the US saw $1.28bn invested in 140 financing rounds in 2006, according to new global research from Dow Jones VentureOne and Ernst & Young. This was up significantly from $664.1m and 103 financings in 2005. However, while the investment levels are growing, cleantech remains a relatively small portion of the overall venture capital market.
Gil Forer, global director of Ernst & Young's Venture Capital Advisory Group, said, 'Global climate change, high oil prices, accelerated growth in emerging markets, energy security and the finite nature of resources are some of the key drivers of global demand for clean technologies in energy and water.
'In addition, the increased willingness of consumers and governments to pay for and use green technologies combined with the positive exit environment of the last couple of years has provided venture capitalists with the confidence to invest in emerging clean technology companies around the globe,' Forer continued.
'Although small, the impressive growth rate over the past year shows it is not an insignificant portion of the market. The increased attention to environmental concerns is causing venture capital investors to recognise and support the entrepreneurial companies that are focused on making a difference and aiming to find market opportunities in this industry, added Stephen Harmston, director of global research for VentureOne. 'And certainly, that is the foundation of the venture capital model - to locate and sustain the next wave of innovation in the global marketplace.'
Along with the growing level of investment, the size of financings for cleantech companies is also growing. The median size of a cleantech financing round in 2006, on a global basis, was $6m. For US-headquartered companies the median round size was $7.5m, slightly higher than the overall median for a US venture capital financing in 2006.
The US saw the most activity in the cleantech segment in 2006, with 87 deals and $883.6m invested. Europe registered 38 deals and $157m invested in 2006, China 12 deals and $221.8m invested. Israel had no deals in 2005, but three deals and $22.5m was invested in 2006.
The most active global investors in cleantech in 2006 include Draper Fisher Jurvetson, DFJ Element, Khosla Ventures, Nth Power and Rockport Capital Partners.
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