Clean Tech Investing Fell Back To Below 2007 Levels Last Year

Despite $22 billion of federal stimulus funds poured into clean tech companies and projects, venture investing suffered during the great recession last year, falling back below 2007 levels.

The industry continues to attract attention from venture capital funds in Silicon Valley, Boston and elsewhere. But hesitancy was the watchword during 2009 and in the fourth quarter, when investments into startups turned in another weak performance.

The latest stats on the industry came Tuesday from the Cleantech Group. The group said investments around the world came to $5.6 billion as 557 deals were funded. This preliminary total could rise 5 to 10 percent.

In the fourth quarter, investments were $1.3 billion, a decline of 27 percent from the third quarter, despite an improving financial landscape. One hundred forty seven deals were done.

Cleantech Group tried to put a good face on the numbers, saying that the 2009 total nearly returned to 2007 levels whereas venture capital outlays in high tech and elsewhere were closer to 2003 levels.

But it is clear venture investing has not yet recovered from the deep swoon it saw early last year.

Solar was the largest investment category in 2009, accounting for 21% of dollars placed, followed by transportation, 20%, and energy efficiency, 18%.

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