It is the first time since 2005 that European investments outgrow those in the US
The venture-capital industry is in a trough, to put it politely. But not clean-tech investing in Europe, where VCs are apparently looking at the long-term horizon and not becoming overly fixated on today’s low oil prices.
Dow Jones VentureSource found that in the first quarter, energy and utility-industry startups in Europe raised $289 million, an increase of 82 percent. The total was helped in part by a large investment – $192 million – placed in NorSun of Oslo, Norway.
But even still, the rise came as venture-capital investing in Europe overall fell 35 percent, and around the world (not including the U.S.) tumbled 50 percent.
In the U.S., VC funding for energy and utility-industry companies fell 59 percent during the same three-month period. While it came to $457 million, more than what was spent in Europe, the number of deals plunged to 15 from 24 a year ago.
Renewal energy companies took it particular hard. Money going to them fell 73 percent.
The European clean-tech deal count also was down, to 10 from 18 a year ago. But it was the first time since 2005 that European energy-related spending outpaced spending in the U.S., said Jessica Canning, director of global research at VentureSource.
