Developing Country Markets Attracting More Clean Tech Invest

The Cleantech Group LLC just released some interesting information on worldwide VC Markets. As reported on Cleantech.com VC investments in developing countries, most notably in solar, have upticked sharpkly in 2007: "Venture capital investment in cleantech for 2007 hit new highs as deals in North America and Europe totaled $5.18 billion, according to data released today. "Energy generation took the lead in last year's cleantech investments, according to a year-end roundup from Ann Arbor, Mich.-based Cleantech Group, which has been tracking cleantech sector investment since 2001. "The report counted 172 deals in energy generation in 2007, totaling $2.75 billion invested into the sector. North American companies continue to receive the lion's share of cleantech venture investing, with North American-based companies receiving over 3x the investment of European-based companies. "Within the energy generation subsector, solar made a strong showing. "In 2007, solar emerged as a significant investment theme, and it was notable to us that of the top five solar deals of the year, three of the largest were solar investments in China and India," said Cleantech Group Managing Director of Global Marketing Kristina Messdaghi. "With three successful crystalline silicon IPOs, China attracted investor interest for solar companies, including Yingli Green Energy, which received $118 million, and Shunda Holdings, which received $82 million. In India, top cleantech investments of the year included solar company Moser Baer Photo Voltaic with $100 million. "We always knew the emerging markets of China and India were going to be significant economic forces. It's clearly now happening," said Messdaghi." Both China and India, like developed economies in Europe and North America, are major oil importers. The incentives to move to renewable technologies is greater than ever and companies in those markets have the competitive advantage of knowing the idiosyncrasies in China and India. Clearly, cleantech is the growth sector for this decade in terms of international trade, but although many developments are taking place in the US (particularly California) and Europe (especially Germany), no one country can claim ownership of the sector.