According to an Ernst & Young analysis based on data from Dow Jones VentureSource, venture capital investment in US-based cleantech companies hit $1.5 billion for the second quarter, in 68 financing rounds. That translates to an increase of 63.8 percent in capital and a 4.6 percent increase in deals compared to the same period last year.
The $1.5 billion mark also means the highest level of venture funding for the cleantech industry was reached since the third quarter of 2008 (i.e. two years ago).
According to Ernst & Young, later stage venture financings were the main driver of investment growth in the United States for Q2 2010, with $891 million invested in 33 deals, and later stage deals accounting for 59% of total funding in the quarter. Compared to Q2 2009, later stage activity rose an impressive 83.3% in terms of deals and 143% in terms of dollars.
Noteworthy: the top 10 deals alone accounted for nearly $1 billion or two thirds of total funding for Q2 2010 ($993 million to be exact).
Five of the top 10 VC deals in Q2 2010 were in the solar segment, which received $438.8 million, an increase of 182.6 percent compared to Q2 2009. Following solar, the biofuels segment also received significant VC investments in Q2 2010 with $265.7 million, an increase of 517.2 percent compared to the same period last year.