Clean Energy Industry Sees Influx Of Venture Capital, Private Equity In Past Three Months

A total of $2,225m of venture capital and private equity flowed into the clean energy industry worldwide in the three months to March 31, according to figures released by New Energy Finance, an independent analyst of the sector. The figure

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A total of $2,225m of venture capital and private equity flowed into the clean energy industry worldwide in the three months to March 31, according to figures released by New Energy Finance, an independent analyst of the sector.

The figure represents an increase of 57.7 percent on the same quarter in 2006 and is 60 percent higher than Q42006. Investment activity was, however, dominated by a few large deals.

“It has been another very strong quarter overall for in clean energy investment,” said Michael Liebreich, founder and CEO of New Energy Finance. “We are seeing larger deals as investors focus on rolling out the most economic technologies. I see only two areas of concern: the very large number of investors building solar silicon refining capacity, which could move the market dramatically from under- to over-capacity in a few years, and the almost comic numbers of investors chasing relatively small numbers of Series A and Series B technology deals.”

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