Global VC investment in cleantech space dips 33% in 2009

Global venture capital investment in the clean technology sector suffered a 33 per cent decline in 2009, amid the economic slump world over, but is likely to see an upturn this year, a study says.

The global cleantech sector brought in at least $5.6 billion in 2009, down 33 per cent from the year ago period when Venture Capital deals of as much as $8.4 billion were announced, according to findings released by Cleantech Group LLC.

Meanwhile, 2009 can boast of a record number of VC deals in a single year.

"There appear to have been more deals done last year than any other year, and potentially at the second highest dollar value ever," Cleantech Group Managing Director Dallas Kachan said.

In the private sector, about a quarter of all global venture investment capital went to cleantech space in the past 12 months, which is more than software, biotechnology or virtually any other industrial sector, Kachan added.

"It's not a prediction, but I wouldn't be surprised if that number grows over the next couple years because there's a lot of overlap between traditional IT and cleantech," Winston Fu, a general partner with Menlo Park-- a California-based US Venture Partner said.