Transport

US venture capital investment in clean tech fell 4.5% in 2011 compared to the previous year to reach $4.9 billion, according to consultants Ernst & Young.

But the analysis, based on data from Dow Jones VentureSource, does show that the total investment is a 29% increase on the $3.8 billion raised in 2009.

Energy and electricity generation led the way in 2011, with a total investment of $1.5 billion raised during 71 rounds, down 5% on 2010.

Within that sector, solar received the largest share of capital in Q4.
The industry products and services sector came in at second place with $1 billion, driven in part by strong support for transport, which accounted for 79% of investment in Q4.

Better Place, the California-based provider of electric car networks, reported the largest deal in Q4 having raised $201 million.

Although energy storage trailed the other sectors in terms of amount invested, which totalled $932.6 million in 2011, it showed a 253% increase in investment compared with 2010 and 47% more deals.

But energy efficiency attracted only $646.9 million, down 29% on the previous year, although it did have the highest number of deals at 78.

“Cleantech is still in the early stages of a long-term journey,” says Jay Spencer, director of Ernst & Young’s Americas cleantech division. “We’ve reached a point where new products and services are ready to be launched, and as these products come to market, we’re seeing renewed interest, innovation and opportunity in cleantech.”

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