Cleantech Turns a Corner in 2Q13

  Cleantech Turns a Corner in 2Q13

   Cleantech Group’s Quarterly Investment Monitor Shows Venture Investment
             Rebounding from Slow First Quarter, to $1.76 Billion

Business Wire

SAN FRANCISCO -- July 3, 2013

Cleantech Group™, a global market intelligence firm helping executives connect
with cleantech innovation, today released preliminary 2Q13 results from its i3
data product. The firm reported that worldwide clean technology venture
investment during the quarter totaled $1.76 billion.

Measured by dollars invested, cleantech venture investment grew 56 percent
from 1Q13 ($1.1 billion). The number of deals recorded in 2Q13 was 214, which
was slightly lower (-13 percent) than the near-record-high 246 deals from the
first quarter. The tally may rise again once all investors have submitted all
deals. Of these deals, 54 percent (115) were Series B or later rounds,
accounting for 90 percent ($1.58 billion) of all money invested during the
quarter.

“President Obama’s Climate Action address has reenergized the cleantech
industry, and our i3 data—in addition to the strong performance of Solar City
and Tesla—underscores our belief that we are turning a corner,” said Sheeraz
Haji, Chief Executive Officer of Cleantech Group. “Recent acquisitions of
Waze, Power-One and ecoATM provide further reason for optimism, and the
breadth of private companies generating material revenue is impressive.
Alongside these trends, we continue to track increased activity by large
corporates. Indeed, the tide appears to be turning in 2013.”

VENTURE INVESTMENT BY TECHNOLOGY SECTOR & TOP DEALS

The leading sector in 2Q13 by amount invested was Energy Efficiency ($378
million), followed by Biofuels & Biochemicals ($231 million) and Solar ($170
million). Energy Efficiency also led by number of deals, with 45 funding
rounds. Transportation (24 deals) came in second by this metric, followed by
Solar (19 deals).

The largest transactions during the second quarter were:

  *Bloom Energy, a California-based maker of solid-oxide fuel cells for
    distributed and on-site power generation, raised $150 million from Credit
    Suisse and E.ON.
  *Intrexon, a California-based developer of synthetic biology technology
    solutions for industries including energy, food, water and medicine,
    raised $150 million from Third Security and Randall J. Kirk – the
    company’s Chairman and CEO.
  *Skyonic, a Texas-based developer of CO2 mineralization technology for
    industrial carbon capture and reuse, raised $128 million from BP Ventures,
    Cenovus Energy, ConocoPhillips, Energy Technology Ventures, and others.
  *Xiangtan Electric Manufacturing (XEMC), a China-based manufacturer of
    efficient drivetrain components for wind turbines and internal combustion
    engines, raised $112 million from Hunan Hi-Venture Capital.
  *Hefei Golden Sun Energy Technology, a China-based developer of solar power
    projects, raised RMB430 million ($69.5 million) from Jiangsu Akcome Solar
    Science & Technology.
  *Blu Homes, a Massachusetts-based designer of green homes including
    resource-efficient fabrication and integrated energy efficient systems,
    raised $65 million from Brightpath Capital Partners and Skagen Group at a
    $400 million post-money valuation. The company indicated that this is
    likely to be its last private round of equity financing.
  *View, a California-based developer of energy-efficient glass technology
    for buildings formerly known as Soladigm, raised $60 million from Corning,
    General Electric, and Khosla Ventures.
  *Lyft, a California-based provider of a smart-phone-enabled peer-to-peer
    taxi service, raised $60 million from Andreessen Horowitz, indicating an
    intent to use the funding to expand its service within the U.S. and
    internationally.
  *Aligned Energy, a Connecticut-based joint-venture of Skanska and Inertech
    developing advanced energy-efficient modular data center and data center
    cooling technology, raised $59.8 million from Inertech, Skanska, and One
    Equity Partners.
  *Lampiris, a Belgium-based renewable energy marketer, raised €40 million
    ($53 million) from Gimv and Societe Regionale d’Investissement de Wallonie
    (SRIW).

VENTURE INVESTMENT BY WORLD REGION

North America accounted for 71 percent of the total venture investment,
whereas Europe & Israel accounted for 13 percent, and Asia Pacific for 15
percent.

NORTH AMERICA: North American companies raised $1.25 billion, up 74 percent
from 1Q13, while the deal count dropped to 136 compared with 1Q13’s 159 (-14
percent). In North America, California again led all states/provinces with
$631 million in investment (36 percent share), followed by Texas ($169.6
million, 9.6 percent) and Massachusetts (103 million, 6 percent).

EUROPE AND ISRAEL: European and Israeli companies raised $235.7 million, down
31 percent from 1Q13, while deal count was also slightly lower at 60 deals
compared with 73 in 1Q13 (-18 percent). Within the region, the United Kingdom
and France led by deal count, with 20 (33 percent of regional total) and 18
(30 percent) cleantech venture deals, respectively.

ASIA PACIFIC: Companies in the Asia/Pacific region raised $267.6 million
across 17 deals in 2Q13, a dramatic rebound from a first quarter that saw a
similar number of deals, but lower deal values at a $65.4 million total. At 15
percent, the region’s share of global cleantech venture capital was at its
highest since 3Q10.

GLOBAL M&As AND IPOs

M&A transactions involving clean technology totaled 54 transactions in 2Q13,
of which totals were disclosed for 22 transactions totaling $4.9 billion. In
20 of the 54 transactions, the targets were VCPE-backed companies. Notable
transactions for VCPE-backed cleantech companies included Google’s acquisition
of California-based, crowd-sourced traffic monitoring startup Waze for $1.3
billion, and Swiss power electronics giant ABB’s $1 billion acquisition of
Power-One, a California-based power conversion and power management technology
toward a smarter electric grid.

There were four IPOs in the sector raising a total of $280 million in 2Q13,
one of which involved a venture-backed company. BioAmber, a maker of bio-based
succinic acid for niche chemicals markets, raised $80 million in its debut on
the New York Stock Exchange. The company was backed by Naxamber S.A.,
Sofinnova Capital, Mitsui, and others. The company has since been approved to
float some of the shares issued on the Euronext Paris exchange.

In one of the IPOs involving a non-venture-backed company, Hannon Armstrong
Sustainable Infrastructure Capital floated its sustainable
infrastructure-focused real estate investment trust (REIT) on the New York
Stock Exchange, raising $200 million.

About Cleantech Group Inc.

Cleantech Group helps clients find, connect with, and embed innovation. The
company’s i3 platform allows subscribers to discover companies and explore
cleantech trends strategically with proprietary real-time data. Cleantech
Forums bring together thought leaders and innovators in the cleantech and
sustainability ecosystem. The company’s advisory services leverage expertise
in designing and executing corporate strategies for sustainable growth and
innovation sourcing. Details at http://www.cleantech.com.

Contact:

Cleantech Group
Emma Zolbrod, 250-598-0623
media-services@cleantech.com
http://www.cleantech.com