Q3 2010 Cleantech Investment Monitor Abstract

Although the third quarter of 2010 shows a drop in invested capital from the record first half of 2010, it’s still an exciting time for cleantech innovation as corporations increase involvement, Asia continues to lead in project financing and VCs reconsider investment models and anticipated returns.

Key takeaways from this quarter include:

  • While 2010 looks set to be a strong year for VC funding, looking ahead, investment may fall short of meeting capital requirements.
  • Asia is on the rise. China continues to dominate cleantech project financing and achieved a record high share of global VC investment in 3Q10 (9%).
  • Venture capitalists aren’t playing favorites: top sectors received similar amounts of financing indicating broadening interest from the financial community.
  • Investors contemplate a new paradigm where successful cleantech start ups will provide 2-5x returns for funds, instead of the 10x exits once expected.

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