Venture funding in green tech firms slows

SAN FRANCISCO, US: Venture funding in green technology companies in the third quarter fell 11 per cent from a year earlier on concerns over the strength of the global economic recovery, according to a report released on Friday.

Funding was down 30 per cent from the second quarter, to $1.53 billion, with a notable pull-back in solar investment, the Cleantech Group said.

The transportation sector led investments during the third quarter, attracting $208 million, followed by biofuel companies with $186 million and smart grid firms with $163 million.

"After record venture capital deployment in (the first half), a continued low volume of exits and doubts resurfacing over the strength and sustainability of the global economic recovery, it is perhaps not surprising that cleantech investment has eased off in the third quarter," said Sheeraz Haji, president of Cleantech Group.

During the quarter, North America accounted for 61 per cent of the total funding, Europe and Israel 25 percent, China 10 percent and India 4 percent, according to Cleantech.

The most active venture capital firms in green technology were Silicon Valley fund Draper Fisher Jurvetson, followed by London-based fund Imperial Innovations.