Venture capital investments contracted overall during 2012 and investments in cleantech weren’t an exception.
Investments slipped 33% to $6.46 billion for cleantech, and the number of deals dropped 15% to 704, according to The Cleantech Group.
2011 was also a tough year, but cleantech investments rose 13% to $8.99 billion, even as deal volumes were down.
“Weak IPO exits, political uncertainty, global macroeconomic stagnation, and fierce competition all played a role in dampening investor enthusiasm for the space in 2012,” says Sheeraz Haji, Cleantech Group. “That said, the entire venture capital industry contracted in 2012, so cleantech is not alone in experiencing this pullback. The cleantech sector will redefine itself in 2013 as investors regroup, continue to favor capital efficient startups and look for new ways to collaborate with large enterprises.”
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