moneytree q4 2011 us cleantech venture fundingfigure 1: cleantech funding trends by quarter,...
TRANSCRIPT
Fourth quarter 2011 cleantech investments increased 50 percent compared to fourth quarter 2010
January 2012
MoneyTreeTM Q4 2011 US Cleantech venture fundingThe MoneyTreeTM Report from PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters
Cleantech
1
Clean technology
Cleantech funding The Clean Technology sector, which crosses traditional MoneyTree industries and is comprised of alternative energy, pollution and recycling, smart grid, and transportation, saw funding of $1.2 billion in the fourth quarter of 2011, a 50 percent increase compared to the fourth quarter of 2010.
“Cleantech funding in the fourth quarter showed significant growth, bringing the year’s total investments to $4.3 billion, a new record for the cleantech industry,” said Tim Carey, US Cleantech practice leader at PwC. “The average deal size in the transportation industry, at $106 million this quarter, continues to eclipse other industry subsegments.”
Figure 1: Cleantech funding trends by quarter, 2009–2011
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$ in
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Figure 2: Growth in Cleantech funding compared with total venture funding
-100%
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Clean Tech Total venture capital
% c
hang
e (Y
/Y)
Cleantech deal volume
Compared to the fourth quarter of 2010, deal volume increased 16 percent in the fourth quarter of 2011 to 73 deals.
Average deal size in the fourth quarter of 2011 was $16.7 million, which was an increase of 29 percent year-over-year.
Figure 3: Cleantech deal volume by quarter, 2009–2011
2009 2010 2011
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ber
of d
eals
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First-time funding compared with follow-on funding
Compared to the fourth quarter of 2010, first-time funding increased 203 percent to $130 million in the fourth quarter of 2011.
On a year-over-year basis, follow-on funding increased 41 percent to $1,092 million in the fourth quarter of 2011.
First-time deals in the Cleantech sector averaged $7.6 million during the fourth quarter of 2011, an increase of 150 percent year-over-year.
Follow-on funding average deal size was $19.5 million, a 23 percent increase from the same period in the previous year.
Figure 4: Cleantech follow-on compared with initial investments, 2009–2011
0%10%20%30%40%50%60%70%80%90%
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Follow-on investmentInitial investment
Cleantech funding by stage
Early-stage investment was $423 million during the quarter, an increase of 135 percent compared to the fourth quarter of 2010.
Investment for late-stage opportunities increased year-over-year by 25 percent to $798 million in the fourth quarter of 2011.
Early-stage average deal size, at $11.8 million, increased 83 percent year-over-year, while late- stage average deal size, at $21.6 million, increased 19 percent over the same period.
PwC
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Figure 5: Cleantech funding by stage, 2009–2011
Late Stage Early Stage
$ in
Mill
ions
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Table 1: 2011 Fourth-quarter sequential growth factors (Q/Q growth)
% Change in deal volume
% Change in avg. deal size
% Change in investments
Early stage 3% 18% 21%
Late stage -26% 91% 41%
Cleantech funding by subsector
All cleantech venture capital segments experienced increased funding in the fourth quarter of 2011 compared to the same period in 2010:
•Transportation, 283 percent to $319 million
•Solar Energy, 34 percent to $288 million
•Smart Grid and Energy Storage, 12 percent to $70 million
•Wastewater Treatment and Recycling, 50 percent to $57 million
•Wind and Geothermal, $2 million (versus $0 in fourth quarter 2010)
•Other Alternative Fuels/Energy, 111 percent to $100 million
•Other Clean Tech, 4 percent to $386 million
Figure 6: Cleantech funding by subsector, 2009–2011
0200400600800
1,0001,2001,4001,600
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Other
Transportation
Wastewater treatment & recycling
Wind & geothermal
Smart grid & energy storage
Other alternative fuels/energy
Solar energy
$ in
Mill
ions
Figure 7: Cleantech funding by subsector, fourthquarter 2011
Other alternative fuels/energy
Other
Transportation
Wastewater treatment & recycling
Smart grid & energy storage
Wind & geothermal
Solar energy
5.7%
8.3%
4.7%26.1%
31.6%23.5%
0.1%
Regional funding trends
Silicon Valley, SoCal, Philadelphia Metro, New England, and Colorado received the most Cleantech venture capital dollars during the fourth quarter of 2011. Silicon Valley received the most funding, with $645 million.
Figure8:Topfiveregions,fourth-quarter2011
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New England
PhiladelphiaMetro
Colorado
SoCal
Silicon Valley
Deal value ($ in millions)
645
195
55
67
56
Figure9:Fundingtrendsintopfiveregions,2009–2011
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SoCal
Silicon Valley
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Colorado
About PwC’s Cleantech Practice
PwC’s Cleantech Practice provides services and advice in assur-ance, tax, transactions, market entry, and business performance improvement to companies across the cleantech sector and the breadth of industries it impacts. Our broad network of industry sector specialists combines a detailed knowledge of govern-ment policy and regulation with strong private enterprise experience, providing us with an in-depth understanding of key industry issues around strategy, operations, regulations, risk, technology, and finance. As the service provider of choice for emerging and established cleantech companies as well as orga-nizations and utilities, we can help you to develop, commer-cialize, deploy, and maintain go-to-market strategies for your products and services across the cleantech ecosystem.
Contacts
Timothy Carey US Cleantech Practice Leader(408) 817-5000 [email protected]
Brian Carey US Cleantech Advisory Leader (408) 817-7807 [email protected]
Wayne HeddenUS Cleantech Practice Partner, Assurance(408) [email protected]
Matt Haskins US Cleantech Tax Leader (202) 414-1570 [email protected]
Debi GerstelUS Cleantech Practice Chief of Staff(408) [email protected]
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