2007 Silicon Valley Projections - Silicon Valley Leadership Group

Environment
California Venture Capital in Clean tech
California attracted $484 million in “Clean tech” venture capital
in 2005. California also dominated in the number of deals
for the two year period 2004 -2005, capturing 30% of the 367
deals.
California has repeatedly taken the lead in adopting environmentally-conscious,
business friendly policy. The PIER
(Public Interest Energy Research) program, the CalPERs and
CalSTERs clean tech initiatives, California’s Renewable
Portfolio Standard, and various
State incentives for solar and wind energy have all made
California an attractive place for clean tech businesses.
While California leads, the Boston area is catching up quickly,
and the percentage of increase in investment is rising faster
in the Northeast, Midwest and Southwest.
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Unique U.S. Cleantech Companies by Region,
2001-2005 (Number of Companies)
119
100
California’s Share of CleanTech VC 2005 - by Sector
75
50
40 40
29
18
0
West Coast Northeast Midwest
Source: Cleantech Venture Network
Southeast South Coast Rockies/
Plains
Northwest
$800
$700
$600
$500
$400
$300
$200
$100
$0
Source: Cleantech Venture Network
$738.8
CleanTech VC 2005 - by Sector
VC Investments in Focus Area
($1.6B invested in 2005)
$361.5
$120.9 $87.2 $62.9 $46.9 $27.2
$161.3
Source: Cleantech Venture Network
E n e r g y
M a t i s & N a n o
W a t e r
M a n u f a c t u r i n g
E n a b l i n g T e c h
T r a n s p o r t a t i o n
E n v i r o n m e n t a l
O t h e r
There is also growing recognition by policy-makers at the
national and state level that clean tech can be a valuable asset
in creating jobs, improving environmental performance, and
promoting national resource independence. California and
Silicon Valley in particular have the potential to capitalize on
market and investment trends. To ensure Silicon Valley
remains pre-eminent in the innovation arena, local and regional
governments should continue to encourage the incubation
of small start-ups, and support policies that encourage businesses
to locate and remain in Silicon Valley.
Global Investments
In 2005, clean tech captured 8.5% of the $6.02 billion in venture
capital that was invested in North America. There were
67 clean tech deals in North America and another 36 deals in
Europe during the first quarter of 2006. Among the deals: 19
of the companies were from the UK, 3 from Denmark, 2 each
from Germany and France, and one each from Sweden,
Finland, Switzerland and Israel. While North America leads,
and California is the leader in North America, there are strong
challenges from other regions and abroad.
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