Are venture capitalists still investing in green technology? The short answer is yes. The more interesting long answer was recently provided Greentech Media's study on the industry. Companies closed 59 deals worth $836.1 million during Quarter 1, 2009. If investment levels annualize at the same rate, we could see over 230 deals worth about $3.3 billion in 2009. Though this represents a steep drop from 2008 activity, large venture capital firms believe this industry promises significant opportunities for healthy returns on investment.
Here's how investments were made, top percentages of the total, in the green tech sector during Quarter 1.
- Solar 42.7%
- Batteries/Fuel Cells/Energy Storage 14.5%
- Ethanol/Biofuels/Gasification 11.3%
- Automotive/Transportation 9.7%
- Wind/Ocean 6.9%
Despite the slowdown from last year, deals are still being made. Products are coming to market and experts predict healthy growth in 2010 and beyond. Even better, companies will need ad campaigns to brand themselves and their offerings. Now might be the best time to position your agency as one with green expertise.[Source: Venture Capital Investment in Renewable Energy, Greentech Media Release, Venture Capital Reporter, April 2009]