RSS Feed Link

Cleantech VC Funding Takes Temporary Hit

Posted by: Mark Marich on April 20, 2009 Source: Policy Dialogue on Entrepreneurship

The venture capital industry is not immune from the current economic downturn. It appears that VCs, like many of us, have paused to assess the impact on their portfolio companies.

The first quarter of the year saw a drop in venture capital investment. The level of investment dropped to lows not seen since 1997. According to the MoneyTree™ Report from the National Venture Capital Association (NVCA) and PricewaterhouseCoopers, VC firms invested only $3 billion in 549 young companies in the first quarter, representing a 61% drop from the first quarter of 2008.

Investment in clean-technology start-ups was hit the hardest--an 85% drop from a year ago. With heavy government investment in energy, and a lot of promising technologies emerging from universities, this trend is alarming. If innovations do not reach the market, the investments will never benefit the public and related new jobs will not be generated.   

Fortunately, Mark Heesen, president of the NVCA, said he did not expect the levels to continue to fall further. “We would expect a mild and steady increase in investment throughout the rest of the year, particularly if the exit pipeline is allowed to clear,” he remarked in the report.

View the data:

-- National

-- Regional

-- Top Deals

-- Charts

Category:  General  Tags:  cleantech, venture capital, nvca, mark heesen

comments powered by Disqus

Search PDE

Policy Dialogue on Entrepreneurship Get Your Weekly Digest

Register today to receive news and updates from Entrepreneurship.org.

Email Newsletter Signup

Past eNewsletters

View All

Email Newsletters

Want to be up-to-date with the latest news and updates from Entrepreneurship.org? To subscribe, just give us your email address below; you'll choose which e-newsletters you'd like to receive on the next screen.