Clean technology venture capital spikes in Q2

Larger transactions and increased investor confidence pushed clean technology ("cleantech") venture capital investments higher in the second quarter of 2009. Investments in companies dealing with energy efficiency and solar power led the overall market, which surged 73 percent quarter-over-quarter. A study by Ernst & Young, with data from Dow Jones VentureSource, suggests a sharp up-tick in cleantech venture capital.

Venture capital investment in cleantech companies hit $572 million last quarter. Forty-eight financing rounds were completed, representing a 100 percent increase in quarter-over-quarter transaction count. Compared to the second quarter of 2008, which was the second best cleantech quarter for venture capital investment, capital put to work fell 59 percent, with the number of transactions down 16 percent.