Q2 2009 Greentech Deal Summary: VC, M&A, IPOs

This month's finance portion of the Greentech Innovations Report looks at the 2009 second quarter venture capital investment in greentech.

Optimism prevailed amongst greentech venture capital investors in the second quarter of 2009. Despite the eulogies delivered for the greentech sector because of a less-than-stellar first quarter, VC investment in greentech rebounded in the second quarter with more than $1.2 billion invested in 85 startups - a 50 percent increase. This is up from $836 million in 59 deals in the first quarter of 2009.

Solar power was once again the leading investment segment at more than $330 million. Unlike previous quarters - the second quarter saw a much more balanced distribution across the various sectors with a marked increase in automotive (more than $202 million) and energy storage (more than $180 million).

One of the drivers for steady second quarter venture investment was the promise of stimulus monies offering startup investors a non-dilutive funding source. Meanwhile, early-stage and late-stage investments dominated, while mid-stage funding was harder to come by, and the average round sizes were slightly smaller. There were no giant $100 million+ solar or biofuel rounds as in 2008.

Notable investment trends in the second quarter include:

Greentech Investment Data in this issue:

• VC investment in greentech 2005-2009
• Second quarter greentech VC investment broken down by sector
• M&A during the second quarter in greentech
• VC and PE greentech investment broken down by sector