Cleantech received $418 million in 38 venture deals in the fourth quarter of 2013. Funding dollars increased 47 percent quarter-over-quarter, while deal volume decreased 12 percent over the same period.
January 2014
Cleantech MoneyTreeTM Report: Q4 2013
Based on the MoneyTreeTM Report from PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters
Cleantech
CleantechCleantech fundingThe Cleantech sector, which crosses traditional MoneyTree industries and is composed of agriculture and bioproducts, energy efficiency, smart grid and energy storage, solar energy, transportation, water and waste management, wind and geothermal, and other renewables, saw a 47 percent increase in funding from the third quarter of 2013 to $418 million.
“Venture investment in the fourth quarter was the highest in all of 2013 despite having the fewest number of deals,” said Tom Solazzo, Cleantech Practice Leader. “Interestingly, for the first time in five quarters, another region (Texas) surpassed Silicon Valley as the most funded region in the country.”
Figure 1: Cleantech funding trends by quarter 2010-2013
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Figure 2: Growth in Cleantech funding compared with total venture funding
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Cleantech deal volume
Compared to the fourth quarter of 2012, deal volume decreased by 37 percent in the fourth quarter to 38. Average deal size was $11.6 million, an increase of 20 percent year-over-year.
Figure 3: Cleantech deal volume by quarter 2010-2013
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First-time funding compared with follow-on fundingCompared to the fourth quarter of 2012, first-time funding decreased 57 percent to $7 million. First-time deals in the Cleantech sector averaged $7.5 million during the fourth quarter, an increase of 288 percent year-over-year, in 2 deals.
Year-over-year, follow-on funding decreased 17 percent to $410 million in the fourth quarter. Follow-on funding average deal size was $11.7 million, a 4 percent increase from the same period in the previous year, in 36 deals.
Figure 4: Cleantech follow-on compared with initial investments 2010-2013
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Cleantech funding by stage
Early-stage investment was $24 million during the quarter, a decrease of 69 percent compared to the fourth quarter of 2012.
Cleantech investment for late-stage opportunities decreased year-over-year by 9 percent to $393 million.
Early-stage average deal size, at $6.1 million, increased 68 percent year-over-year in 6 deals, while late-stage average deal size, at $12.3 million, decreased 12 percent over the same period in 32 deals.
PwC
Figure 5: Cleantech funding by stage each quarter 2010-2013
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2013 Fourth quarter sequential growth factors (Q/Q growth)
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Early stage -67% 60% -60%
Late stage 28% 27% 76%
Cleantech funding by subsector
Cleantech subsectors receiving increased funding in the fourth quarter compared to the prior-year period were:
• Water & Waste Management, increased 1,991 percent to $110 million
• Smart Grid & Energy Storage, increased 216 percent to $127 million
• Agriculture & Bioproducts, increased 20 percent to $4 million
Cleantech subsectors receiving less funding in the fourth quarter compared to the prior-year period were:
• Transportation, decreased 100 percent to $0• Energy Efficiency, decreased 67 percent to $21 million• Solar Energy, decreased 65 percent to $67 million• Wind & Geothermal, decreased 33 percent to $1 million• Other Cleantech, decreased 23 percent to $87 million
Figure 6: Cleantech funding by subsector 2010-2013
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Figure 7: Cleantech funding by subsector fourth quarter 2013
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Regional funding trends
Texas, Silicon Valley, New England, San Diego, and the Southeast received the most Cleantech venture capital funding in the fourth quarter. Texas received the most funding with $111 million.
Figure 8: Top five regions fourth quarter 2013
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Figure 9: Funding trends in top five regions from 2010-2013
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Contacts
Tom SolazzoUS Cleantech Practice Leader (949) 437 5342 [email protected]
Brian Carey US Cleantech Advisory Leader (408) 817 7807 [email protected]
Keith ParsonsUS Cleantech Assurance Leader(720) 931 [email protected]
Matt HaskinsUS Cleantech Tax Leader (202) 414 1570 [email protected]
Debi GerstelUS Cleantech Practice Chief of Staff(408) 817 [email protected]
www.pwc.com/cleantech
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