VC invested in $5.18 bn in clean tech

SILICON VALLEY: Venture capitalists invested a record $ 5.18 billion in clean tech firms in North America and Europe in 2007, posting over 40 per cent surge from the previous year, according to the Cleantech Group.

"Despite strong headwinds building in the global economy and tightening credit markets, the medium and long-term value propositions for clean tech opportunities sustained the sixth consecutive year with unexpectedly robust growth," Cleantech Group representative Nicholas Parker said in a statement.

Despite growing uncertainty in the global economy, clean tech investments rose driven by high energy costs, climate change concerns, global competition for resources and highly favourable government policies.

North American firms continued to receive the bulk of clean tech venture financing in 2007, getting over three times their European counterparts. But both sides of the Atlantic saw gains in overall financing,

By region, Californian companies received the most financing across all clean tech sectors, representing $ 966 million, or 35 per cent of the total, reported Red Herring.

Energy generation companies collected the largest share of funding, totalling $ 2.75 billion followed by energy storage firms with $ 471 million, transportation with $ 445 million, energy efficiency with $ 356 million, and recycling and waste with $ 291 million.