Feb. 8, 2007: Clean Energy Investments More Than Double in 2006
New Energy Finance notes a number of trends suggesting that the clean energy field is maturing. For one thing, more than half of the venture capital funding was third-round funding, also called "Series C" funding, up from less than a third the year before. According to New Energy Finance, such funding generally goes to proven technologies at an advanced stage of commercialization. In addition, private equity investments in new assets and capacity expansions for clean energy companies more than tripled, to $3.5 billion. These investments generally go toward proven technologies with a solid business plan.
Clean energy companies also raised $1.9 billion through over-the-counter transactions and by selling their stock at a discount, a technique known as a "private investment in public equity," or PIPE. These mechanisms are typically used for fast cash infusions to fund expansions in small- to medium-sized public companies.
Publication date: 02/05/2007