TODAY’S STUDY: THE MONEY FROM NEW ENERGY
MoneyTree Report; Q1 2013
May 2013 (PricewaterhouseCoopers)
At $369 million, the Cleantech sector, which crosses traditional MoneyTree industries and is comprised of alternative energy, energy storage, recycling, smart grid, transportation, and wastewater treatment, saw a 61 percent decrease in funding in the first quarter of 2013 compared to the first quarter of 2012.
“Cleantech funding in the first quarter was lower than anytime in the past four years”, said Tom Solazzo, Cleantech Practice Leader. “The decline was driven by a significant drop in average deal size as well as volume. One bright spot was the modest lift in funding for smart grid and energy storage companies.”
Cleantech deal volume
Compared to the first quarter of 2012, deal volume decreased by 25 percent in the first quarter, to 61. Average deal size was $6 million, a decrease of 48 percent year-over-year.
First-time funding compared with follow-on funding
Compared to the first quarter of 2012, first-time funding decreased 68 percent to $24 million. First-time deals in the Cleantech sector averaged $2 million during the first quarter, a decrease of 66 percent year-over-year, in 12 deals.
Year-over-year, follow-on funding decreased 60 percent to $344 million in the first quarter. Follow-on funding average deal size was $7 million, a 45 percent decrease from the same period in the previous year, in 49 deals.
Cleantech funding by stage
Early-stage investment was $140 million during the quarter, a decrease of 60 percent compared to the first quarter of 2012.Cleantech investment for late-stage opportunities decreased year-over-year by 62 percent to $229 million.
Early-stage average deal size, at $6.1 million, decreased 52 percent year-over-year in 23 deals, while late-stage average deal size, at $6 million, decreased 46 percent over the same period in 38 deals.
Cleantech funding by subsector
Cleantech subsectors receiving increased funding in the first quarter compared to the prior-year period were:
• Smart Grid and Energy Storage, 21 percent to $43 million Cleantech subsectors receiving less funding in the first quarter compared to the prior-year period were:
• Transportation, 99 percent to $1 million
• Solar Energy, 87 percent to $25 million
• Other Alternative Fuels / Energy, 84 percent to $36 million
• Pollution and Recycling, 72 percent to $18 million
• Wind & Geothermal, 47 percent to $3 million
Regional funding trends
Silicon Valley, New England, So Cal, Colorado, and Texas received the most Cleantech venture capital funding in the third quarter. Silicon Valley received the most funding with $231 million