Just released – a special excerpt on Solar from Cleantech Group’s Quarterly Investment Monitor report (normally available only to subscribers).
Venture investment in solar in the first quarter of 2012 was down following on the back of a strong 2011. Companies innovating in various areas of the solar sector raised $250 million in the first quarter, down 53 percent from the previous quarter and down 56 percent when compared with the same quarter a year earlier. While the total amount invested dropped steeply, the number of deals done remained relatively strong at 28 (right near the long-running sweet spot for the sector of 30 deals per quarter).
This suggests investors are both cautious about market conditions and capital-constrained and are choosing more efficient fund allocation while still keeping an appetite for deals. The average round sizes for both the quarter as a whole and the top three deals were also down around 50 percent compared with the quarterly averages for 2011.
SolarCity’s $81 million round, the biggest round of the quarter for the solar sector, drove the large dollar share for the segment. In addition to SolarCity’s round, other PV integrators/developers including Sungevity, OneRoof Energy, ISIS Solar, and Solar Renewable Energy raised venture capital.
For more on the quarter’s investments, corporate activity, IPOs and regional analysis, download the free Solar Investment Excerpt.
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