Clean tech investments by U.S. venture capital firms reached $2.6 billion in the first three quarters of 2007, the highest dollar volume ever by U.S. firms and a 46 percent increase over clean tech investments for all of 2006.
A majority of the money invested, or $1.7 billion, went to U.S. companies, according to data released by Thomson Financial and the National Venture Capital Association. The U.S. was followed by the Netherlands, $500 million, and Brazil, $200 million.
Within the U.S., California received the largest portion, totaling $726 million, or 43 percent, of the money. Massachusetts followed with $292 million, or 17 percent.
Solar energy was the biggest sub-sector for clean tech investments in the first nine months of 2007, receiving $664 million, or 25 percent. “Alternative Energy”—which includes nuclear and biofuels but excludes wind, solar, geo-thermal, and co-generation in this study—came in second with $317 million, or 12 percent.
But the U.S. clean tech sector shouldn’t get all bragging rights. Although the U.S. is the global leader in venture capital and private equity investment in clean energy, the European Union remains the “global pacesetter” in overall clean energy investment, according to London-based New Energy Finance.
In particular, the U.S. lags Europe in money raised in the sector through initial public offerings, said the research firm.