Dec 02, 2007

Clean Technology Attracts Record VC Investments

Advent Solar Ranks One of Largest Clean-Tech Investments Nat

New Mexico Business Weekly

U.S. venture capital firms invested a record $2.6 billion in clean technology in the first nine months of 2007 -- a 46 percent jump compared to the $1.8 billion invested in all of 2006.

The growth shows clean tech is emerging as a key magnet for investments, alongside the traditional information technology and life science sectors, said Mark Heesen, president of the National Venture Capital Association.

"There are major opportunities for venture capitalists to totally reshape the energy market throughout the world as governments, consumers, and companies are demanding innovation in this space," Heesen said in a news release.

California attracted the lion's share of capital, with $726.2 million. Massachusetts followed with $292.6 million, Texas with $149.4 million, and Washington with $121.3 million.

New Mexico ranked fifth, with $96 million invested in four deals during the first three quarters. The total included a $70 million investment in solar cell manufacturer Advent Solar Inc., representing one of the largest single clean-tech investments nationally in the period.

As interest in clean technology grows, New Mexico and the Southwest will most likely receive a lot more attention, Heesen said.

To highlight emerging opportunities in New Mexico, the NVCA helped organize a clean-tech conference in Albuquerque Nov. 15-16 attended by representatives from 20 national VC firms. The event showcased select local companies such as Advent Solar, as well as clean-tech research at Sandia National Laboratories.