Venture Funding and M&A Quarterly Alternative Energy • Clean Technology Energy • Environmental 3rd Quarter, 2007 – United States Published by: VentureDeal
Contents Summary
2
Funding activity
2
M&A activity
4
Notes
5
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This material has been prepared and issued by VentureDeal, LLC. The information contained herein is based on current information that VentureDeal considers reliable, but we make no representation that it is accurate or complete, and it should not be relied upon as such. It is provided with the understanding that VentureDeal is not acting in a fiduciary capacity. © 2008 VentureDeal. Some Rights Reserved. 1/5
Venture Funding and M&A Quarterly - 3rd Quarter, 2007
Summary
During the quarter, Alternative Energy sector companies secured the lion’s share of venture capital funding as well as the number of companies funded, receiving $586 million among 37 different companies. Clean Technology companies came in a distant second place receiving $363 million concentrated among only 5 companies, while Energy and Environmental fundings accounted for $94 million combined. (See Table 1.)
Alternative Energy
In the Alternative Energy sector, the largest funding event was for Ceres, Inc., which received $75 million for its series F round. Ceres is developing crop technologies useful in biofuel production and is an example of an increasing number of alternative energy startups in the biofuel space. An unfortunate byproduct of the use of crops for fuel is the rising price of basic foodstuffs. The hope of Ceres and others like it is to radically improve the energy yield from crops used for biofuel.
Clean Technology
In the Clean Technology sector, the biggest transaction was the $250 million funding of venture-backed 212 Resources by GE Energy Resources to finance the implementation of the company’s water treatment technology. GE Energy has become active in the Alternative Energy/Clean Tech sector of late. GreatPoint Energy received $100 million to go to market with its clean coal technology. The US is still highly dependent on coal for electricity and there are numerous technologies in various stages of development to make this carbon dioxide intensive business cleaner.
Energy
Venture funding of Energy companies was down from the previous quarter, with a large slice of the funding - $21 million - going to Virent Energy Systems, which is backed by Cargill Ventures, Venture Investors and Stark Investments. Virent is commercializing technology that the two founders originally developed at the University of Wisconsin-Madison.
This material has been prepared and issued by VentureDeal, LLC. The information contained herein is based on current information that VentureDeal considers reliable, but we make no representation that it is accurate or complete, and it should not be relied upon as such. It is provided with the understanding that VentureDeal is not acting in a fiduciary capacity. © 2008 VentureDeal. Some Rights Reserved. 2/5
Venture Funding and M&A Quarterly - 3rd Quarter, 2007
The technology aims to enable the production of renewable liquid fuels, fuel gasses and other chemicals by its patented “Aqueous Phase Reforming” (APR) process. APR was originally intended to generate hydrogen from sugar, but evolved into the company’s current focus.
Environmental
The Environmental sector saw the $7 million second round funding of Reklaim Technologies, Inc., which has developed an innovative way to recycle and reclaim the millions of rubber tires sitting in landfills around the country.
Table 1
Venture Funding Activity– 3rd Quarter 2007 Total Amount Funded
% Change Vs. Prior Quarter
Number of Companies Funded
% Change vs. Prior Year
Alternative Energy
$586 Million
+ 95%
37
+ 95%
Clean Technology
$363 Million
+ 534%
5
- 29 %
$87 Million
- 24%
10
- 23%
$7 Million
+ 10 %
1
--
$1.04 Billion
+ 213 %
53
+ 31 %
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Energy Environmental Total
This material has been prepared and issued by VentureDeal, LLC. The information contained herein is based on current information that VentureDeal considers reliable, but we make no representation that it is accurate or complete, and it should not be relied upon as such. It is provided with the understanding that VentureDeal is not acting in a fiduciary capacity. © 2008 VentureDeal. Some Rights Reserved. 3/5
Venture Funding and M&A Quarterly - 3rd Quarter, 2007
M&A Activity M&A activity was almost non-existent during the quarter, as Table 2 below shows. The only M&A transaction recorded during the quarter was the acquisition of MDEnergy, Inc. of Stamford, CT. MDEnergy is an energy management company that provides enterprises with technology to reduce their energy costs. It was acquired by EnerNOC, Inc. (Nasdaq: ENOC) in a stock and cash transaction valued at $7.9 million.
Table 2
Venture M&A Activity– 3rd Quarter 2007 M&A Transaction Amounts
% Change Vs. Prior Quarter
M&A Number of Transactions
% Change vs. Prior Quarter
Alternative Energy
--
- 100%
--
- 100%
Clean Technology
--
--
--
--
$7.9 Million
- 90 %
1
--
--
--
--
--
$7.9 Million
- 57%
1
- 100%
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Energy Environmental Total
This material has been prepared and issued by VentureDeal, LLC. The information contained herein is based on current information that VentureDeal considers reliable, but we make no representation that it is accurate or complete, and it should not be relied upon as such. It is provided with the understanding that VentureDeal is not acting in a fiduciary capacity. © 2008 VentureDeal. Some Rights Reserved. 4/5
Venture Funding and M&A Quarterly - 3rd Quarter, 2007
Notes This report was prepared by the staff of VentureDeal, LLC. The information sources used were the VentureDeal.com database. VentureDeal is a venture capital database that provides the latest information about venture-backed technology companies, venture capital firms and transactions in the United States. The database obtains transaction and company information from a wide variety of reputable public and private sources. While this report is free of charge, users may view the individual transactions supporting the totals herein by subscribing to VentureDeal for $25 and clicking on the relevant Industry category of their choice. This publication may be re-produced or re-transmitted for noncommercial purposes, subject to the copyright notice herein. While all attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions or contrary interpretation of the subject matter herein. This publication is not intended for use as a source of any advice such as legal, medical, or accounting. The information contained herein may be subject to varying international, federal, state and/or local laws or regulations. The purchaser or reader of this publication assumes responsibility for the use of these materials and information. Adherence to all applicable laws and regulations, including international, federal, state and local, governing professional licensing, business practices, advertising and all other aspects of doing business in the US, Canada or any other jurisdiction is the sole responsibility of the purchaser or reader. Neither the author nor the Publisher assume any responsibility or liability whatsoever on the behalf of any purchaser or reader of these materials. (C) 2008 VentureDeal, LLC. Some Rights Reserved.
This material has been prepared and issued by VentureDeal, LLC. The information contained herein is based on current information that VentureDeal considers reliable, but we make no representation that it is accurate or complete, and it should not be relied upon as such. It is provided with the understanding that VentureDeal is not acting in a fiduciary capacity. Š 2008 VentureDeal. Some Rights Reserved. 5/5