Friday, October 20, 2006

87% IRRs on European cleantech venture investments?

  • A very interesting study released recently by New Energy Finance, and commissioned by the European Energy Venture Fair. Looking at 57 different investments in Europe since 1999, the study calculates that VCs have achieved an 87% annual rate of return on these investments -- collectively. It's important to emphasize that last point because, as is typical for venture investments, the results are an aggregation of a very wide range of results. Eight of the investments resulted in (very successful) IPOs or trade sales, 9 had follow-on rounds that averaged to moderate up rounds, six went under, and the remaining 34 are still being carried at cost (at least as far as the study's authors know). So really, not a huge sampling of actual exits, but still, very intriguing results. As a reminder, a study of cleantech VC exits and returns was completed last year by the Cleantech Venture Network (self promotion alert: Diana Propper of Expansion Capital Partners was one of the study's co-editors), which also found competitive returns in the sector (as first described in this lengthy post).
  • Sub-One Technology announced a $7mm Series B financing, led by ATV, and including existing investors Chevron Technology Ventures and ITI Energy. The company's anti-corrosive coatings help prevent failures in -- and replacement of -- energy pipelines and industrial infrastructure. The company simultaneously took in a final $1mm Series A tranche from ITI Energy as a result of earlier commitments as well.
  • The next Renewable Energy Business Network event has been announced: November 2, in San Francisco, Nixon Peabody is graciously hosting a networking event, including what should be a very interesting presentation by Kurt Johnson of the California PUC: "Everything You Need to Know About California Cleantech Legislation." Space is limited, so Bay Area renewable energy professionals who are interested in attending or getting more information should contact Nick Allen.


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