Solar leads U.S.-specific 2010 VC money grab

An analysis from consulting firm Ernst & Young puts 2010 venture capital investment in clean and green technologies at close to $3.98 billion, which is up about 8 percent from its finding of $3.7 billion in 2009. What makes these numbers different from the ones I published in mid-January from the Cleantech Group is that they are focused on the United States, not worldwide activity. What makes them similar is the fact that solar technologies captured a great deal of the spotlight, just as they did worldwide.

Here are some of the highlights:

• There were 278 deals last year, up 7 percent.
• Solar-related deals were up 77 percent to $1.58 billion and the concentration was on follow-on and second-generation arrangements. The largest deal in the fourth quarter was for Abound Solar, a Fort Collins, Colo.-based thin-film photovoltaic module producer that raised $111.18 million.
• Of the $1.24 billion raised for cleantech consumer and commercial industry plays (think solar windows or construction materials and other products) about half went to electric vehicles and charging stations, or $695 million in total. The investors weren't necessarily your classic VCs, according to Ernst & Young's Cleantech Director, Jay Spencer: "Electric vehicles are bringing the strands of cleantech together as companies begin to address opportunities that will arise from the growth of the new consumer and commercial markets. They companies are from industries such as: utilities, big-box retailers, rental car and batter storage." One example: Panasonic has put $30 million into Tesla Motors.
• Cleantech companies in the western United States including the Mountain Region, the Pacific Northwest and Calfornia claimed about $2.76 billion of all the money.

I'll close out this post by pointing out that investments in energy efficiency technologies actually slipped in 2010, to $688.99 million across 68 deals. This is ironic considering the push by the Obama Administration's "Better Buildings Initiative" to encourage energy efficiency. This seems to be the only energy policy on which there is bipartisan agreement: that by cutting the amount of power that buildings consume, we can improve our overall exposure to economic-related energy issues. Interesting that VC money to that sector decreased. Then again, this might be indicative of a higher level of maturity.