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About PwC’s Cleantech Practice
PwC’s Cleantech Practice provides services and advice in assurance, tax, transactions, market entry, and business performance improvement to companies across the cleantech sector and the breadth of industries it impacts. Our broad network of industry sector specialists combines a detailed knowledge of government policy and regulation with strong private enterprise experience, providing us with an in-depth understanding of key industry issues around strategy, operations, regulations, risk, technology, and finance. As the service provider of choice for emerging and established cleantech companies as well as organizations and utilities, we can help you to develop, commercialize, deploy, and maintain go-to-market strategies for your products and services across the cleantech ecosystem.
Contacts
Tom SolazzoUS Cleantech Practice Leader (949) 437 5342 [email protected]
Brian Carey US Cleantech Advisory Leader (408) 817 7807 [email protected]
Keith ParsonsUS Cleantech Assurance Leader(720) 931 [email protected]
Matt HaskinsUS Cleantech Tax Leader (202) 414 1570 [email protected]
Debi GerstelUS Cleantech Practice Chief of Staff(408) 817 [email protected]
www.pwc.com/cleantech
www.pwcmoneytree.com
PwC Research&Analytics
Cleantech received $357 million in 33 venture deals in the first quarter of 2014. Funding dollars decreased 7 percent year-over-year, while deal volume decreased 42 percent over the same period.
April 2014
Cleantech MoneyTreeTM Report: Q1 2014
Based on the MoneyTreeTM Report from PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters
Cleantech PwC
CleantechCleantech fundingThe Cleantech sector, which crosses traditional MoneyTree industries and is composed of agriculture and bioproducts, energy efficiency, smart grid and energy storage, solar energy, transportation, water and waste management, wind and geothermal, and other renewables, saw a 7 percent decrease in funding from the first quarter of 2013 to $357 million.
“Cleantech funding, in aggregate, is close to where it was this time last year, but the mix is moving dramatically towards late- stage investments. Late-stage deal size grew significantly, while early stage investment largely evaporated and, for the first time since we started tracking the industry, there were no disclosed first-time investments.”
Figure 1: Cleantech funding trends by quarter 2011–2014
2011 2013 20142012
Bill
ions
of $
0.0
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0.4
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Figure 2: Growth in Cleantech funding compared with total venture funding
-80%
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% C
hang
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/Y)
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Cleantech Total Venture Capital
Cleantech deal volume
Compared to the first quarter of 2013, deal volume decreased by 42 percent in the first quarter to 33. Average deal size was $11.5 million, an increase of 59 percent year-over-year.
Figure 3: Cleantech deal volume by quarter 2011–2014
2011 2012 2013 2014
Num
ber
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dea
ls
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20
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60
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100
Q4Q3Q2Q1
First-time funding compared with follow-on fundingWith the exception of a single deal for an undisclosed amount, there was no first-time funding in the first quarter of 2014.
Year-over-year, follow-on funding increased 3 percent to $357 million in the first quarter. Follow-on funding average deal size was $11.5 million, a 39 percent decrease from the same period in the previous year, in 32 deals.
Figure 4: Cleantech follow-on compared with initial investments 2010–2014
80%82%84%86%88%90%92%94%96%98%
100%
Follow-on investmentInitial investment
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Cleantech funding by stage
Early-stage investment was $10 million during the quarter, a decrease of 93 percent compared to the first quarter of 2013.
Cleantech investment for late-stage opportunities increased year-over-year by 46 percent to $347 million.
Early-stage average deal size, at $3.4 million, decreased 62 percent year-over-year in 4 deals, while late-stage average deal size, at $12.4 million, increased 78 percent over the same period in 29 deals.
Figure 5: Cleantech funding by stage each quarter 2010–2014
2014 First quarter sequential growth factors (Q/Q growth)
% Change in deal Volume
% Change in avg deal size
% Change in investments
Early stage -33% -36% -52%
Late stage -3% 0% -7%
Cleantech funding by subsector
Cleantech subsectors receiving increased funding in the first quarter compared to the prior-year period were:
• Agriculture & Bioproducts, increased 939 percent to $135 million
• Transportation, increased 658 percent to $10 million• Smart Grid and Energy Storage, increased 80 percent to
$107 million
Cleantech subsectors receiving less funding in the first quarter compared to the prior-year period were:
• Other Cleantech, decreased 89 percent to $12 million• Energy Efficiency, decreased 68 percent to $26 million• Water & Waste Management, decreased 53 percent to
$35 million• Wind & Geothermal, decreased 22 percent to $2 million• Solar Energy, decreased 20 percent to $31 million
Figure 6: Cleantech funding by subsector 2010–2014
0.00.2
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Wind & Geothermal
Other Cleantech
Water & Waste Management
Transportation
Energy Efficiency
Smart Grid & Energy Storage
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Agriculture & Bioproducts
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Figure 7: Cleantech funding by subsector first quarter 2014
Solar Energy
Transportation
Wind & Geothermal
Other Cleantech
Water & Waste Management
Smart Grid & Energy Storage
Energy Efficiency
Agriculture & Bioproducts
38%
7%
9%
3%
30%
10%3%
1%
Regional funding trends
Silicon Valley, Midwest, Colorado, Texas, and the Philadelphia metro area received the most Cleantech venture capital funding in the first quarter. Silicon Valley received the most funding with $93 million.
Figure 8: Top five regions first quarter 2014
0 20 40 60 80 100
Philadelphia metro
Texas
Colorado
Midwest
Silicon Valley
Deal value ($ in Millions)
93
91
48
22
51
Figure 9: Funding trends in top five regions from 2010–2014
0%10%20%30%40%50%60%70%80%90%
100%
LA/Orange County
Silicon Valley
New England
Texas
Midwest
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Late Stage Early Stage
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ions
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