In the last year, the Top 30 Most Active Venture Capital Firms had their hands in one out of every four deals, which amounted to nearly $9 billion in funding. We’ve already seen that the most active venture capital firms allotted only 10% of their deals to Green Tech/Clean Tech and that, in making those investments, they strongly favored Series B rounds. Now, we look within Green Tech to see which sectors and industries attracted the most attention. (Note: CB Insights taxonomy breaks down sectors into industries which further break down into sub-industries)
Unsurprisingly, the top 30 did make a majority of their greentech investments in the energy & utilities sector, which received just over 60% of funding and deal flow. However, the remaining 40% of investment saw some diversity as indicated by significant deal flow and funding levels among the industrial (12% deals, 8% dollars), green software (8%, 8%), and automotive & transportation (7%, 14%) industries.
Within the energy & utilities sector, the renewable energy industry was the biggest winner with 64% of the top 30’s greentech / cleantech investment. Solar continued to be the hottest sub-industry, attracting 57% of venture deals, followed by bio-energy (21%) and wind (18%) investments. Other renewable energy sub-industries like geothermal and hydroelectric are included in the other bucket below.
Interest in renewables by the top 30 most active venture capital firms increased over the course of the year with first part of the year averaging less than 2 renewable energy deals per month and the last half of the year seeing an average of 3 deals per month.