AUTHOR: ______________ TITLE: "Green Tech" Venture Capital Continues its Rebound DATE: 10/12/2009 02:10:00 PM ----- BODY:

According to a survey by Deloitte and The Cleantech Group, venture capital investment has continued its recent resurgence, rebounding from abysmal levels late last year and the beginning of this year. The survey credits government stimulus efforts for restoring the confidence of private investors in green tech ventures. Investments in North America, Europe, India and China totaled 1.3 Billion USD for the third quarter of 2009, a 10% increase from the previous quarter, but still 40% lower than the third quarter of 2008. Kohsla Ventures succeeded in launching two new green-tech funds, totaling 1.1 Billion USD. Indeed, the role of non-IPR incentives, i.e. government policies, appear to be playing a critical role in stimulating investment: “The extension of tax credits for renewable-based power generation along with government stimulus and regulatory requirements to meet renewable portfolio standards are helping to drive continued investment on the part of VCs and utilities into the cleantech sector,” said Scott Smith, U.S. leader of Deloitte’s Clean Tech practice. “Utilities are increasingly bringing their access to capital to the sector through direct investment and power purchase agreements, driving new projects and increased capacity. We continue to see utilities investing in wind and solar and expect this trend to continue as cleantech projects become more economically viable and desirable for utilities.” However, the investment is being made in companies well beyond the R&D phase. Solyndra and Tesla Motors, two of the largest recipients of VC funding, attracted funding for proven technologies - thin-film solar tubes and electric vehicles, respectively. Solyndra is using its funds for increased manufacturing, while Tesla is using its share for increased global marketing and retail efforts. The solar sector received the lion's share of the funds, followed by transportation and green buildings. China and India received only 3% and 1.5% of the total VC investment. The US, Europe and Israel accounted for the remaining 96%. The Cleantech Group's report can be accessed here: http://cleantech.com/about/pressreleases/20090930.cfm

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