Cleantech MoneyTree™ Report: Q3 2012 Venture funding summary

November 2012
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Cleantech MoneyTree™ Report: Q3 2012 Venture funding summary

At a glance

Cleantech investment, at $791 million, declined by 20% in Q3 2012 compared to the second quarter, a rate similar to that of overall venture investment. Deal volume remained the same on a quarter-to-quarter basis but volume of activity on a year-over-year basis saw a decrease of 33 percent from 86 deals in the third quarter of 2011 to 58 deals in the third quarter of 2012.

Highlights from this quarter's report:

  • Third quarter Cleantech investment, at $791 million, declined 20% compared to the second quarter, a rate similar to that of overall venture investment.
  • While deal volume remained about the same on a quarter-to-quarter basis, volume of activity on a year-over-year basis saw a decrease of 33 percent from 86 deals in the third quarter of 2011 to 58 deals in the third quarter of 2012.
  • Year-over-year funding declined 16%, while average deal size climbed 24% to $13.6 million during the same period due to an increase in the average deal size for follow-on funding.
  • First time funding fell steeply, to $23 million, a 77% decline compared to the third quarter 2011.
  • Year-over-year funding climbed in transportation and alternative fuels, but fell steeply in solar, wind, smart grid, storage and recycling.
  • The Midwest and Southern California received the most funding, driven by investments in transportation.