• Clean Tech Venture Deals Rising

    Wednesday, November 28th, 2007

    Erick Schonfeld is a technology journalist and the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily for the blog. He joined TechCrunch as Co-Editor in 2007, and helped take it from a popular blog to a thriving... → Learn More

    It is not just Google that is investing in clean tech these days. Green energy startups are cleaning up on Sand Hill Road as well. The National Venture Capital Association and Thomson Financial put out some figures today on the amount of U.S. venture capital going into clean tech startups—some of the startups are overseas, but the money came from U.S. firms. (You can download the full release here). During the first three quarters of 2007, VCs poured $2.6 billion into clean tech startups, compared to $1.8 billion for all of 2006, and a mere $533 million in 2005.

    clean-tech-deals.png

    How does this compare to venture capital going into Internet startups? According to the NVCA, here are the stats for U.S. venture capital invested in Internet startups over the past three years:

    U.S. Venture Capital in Internet Startups

    2005: $3.61 billion
    2006: $4.96 billion
    2007: $3.86 billion*

    *(through 9/30)

    So far this year, VCs are putting two-thirds as much into clean tech as they are into Internet startups. To put this into perspective, for the first three quarters of 2007, clean tech investments represented 10 percent of all venture fundings, compared to 15 percent for Internet investments.

    Clean Tech as a Percentage of Total Venture Capital

    2005: 0.2 percent
    2006: 6.7 percent
    2007: 10 percent*

    *(through 9/30)

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