Today's Date: Tuesday, October 07, 2008
The Venture Power Report
Authors: Eric Wesoff and Michael Kanellos
Bullet Arrow May 10, 2007

The Venture Power Report is devoted to tracking the flow of private capital into the greentech market, with a keen focus on alternative energy, power generation and infrastructure. In its biweekly report, financings, IPOs, M&A and exits are tracked with an analytical eye, providing context and perspective in this rapidly evolving marketplace. It's author, Eric Wesoff, has been providing analysis in the greentech market for over four years, and supplements traditional financing reporting with critical insights into the latest technology trends that entrepreneurs and investors need to be aware of to stay on top of these evolving markets.

From the heart of Silicon Valley, The Venture Power Report is published twice monthly and reaches thousands of venture capitalists, private equity investors, CEOs, vice presidents and senior technologists. Clients for The Venture Power Report include Kleiner Perkins, Sequoia Capital, Mohr Davidow Ventures, Dow Corning, SunPower, Intel, Chevron Technology Ventures, IBM Venture Group, Applied Materials Ventures, Piper Jaffray and many more.

Annual subscriptions to The Venture Power Report include the biweekly report, quarterly summary reports and an annual report on the state of investing in the greentech market. Each report contains premium data and research available only to subscribers. Archive Access gives subscribers full access to a year of previously published reports.

In addition to being available for single locations, The Venture Power Report is available through enterprise license agreements, which enable unlimited sharing of The Venture Power Report between subscribers within the same company, across multiple locations. Archive access also is available for enterprise license agreements.

Sample Articles from the Venture Power Report

Vol. 5, No. 10: M&A in Renewable Energy

The acquisition of solar installers and integrators by large public solar firms and roll-up strategies by smaller private solar firms continues to build. It's understandable why a manufacturer would want to vertically integrate and garner more revenue in the solar value chain. It's less clear what the economies of scale are for an integrator acquiring another integrator.

Vol. 5, No. 8: Q2'08 Funding Summary – VC in Renewable Energy

VC energy investors continue to be bullish in a bear market as Q2 investment in renewable energy reached another record high. Q2 totaled $1,291M, with 74 deals compared to Q1's $998M in 73 deals. Last year's total was $3.43B in 222 rounds and 2008 is well on its way to bettering both those figures.

This quarter's most active investors were Khosla Ventures and The Quercus Trust. Solar power was the dominant sector once again with three huge solar thermal deals accounting for $350M.

While some are mourning the death of the VC model amidst an IPO drought, the Renewable Energy sector saw a $1.6B acquisition with an 8X PE return for HarbourVest (in Ersol) and a queue of strong potential IPOs on the horizon in Q3 and Q4. We forecast that the ~$1B per quarter VC investment pace will continue over the next few years.

Vol. 5, No. 4: 2007 VC in Renewable Energy Summary

Total VC investment in Renewable Energy in 2007 was $3.43B, up 50% over 2006. Solar led with an immense $1.05B total, but all sectors are receiving investment and all are being tested for venture returns.

VCs guided more than $3.4 Billion dollars into renewable energy start-ups in 2007, up 50% from the previous year. Venture Power forecasts this figure will remain steady over the next two years.

If 2006 was the year of biofuels, then 2007 was the year of solar for VC investors, with more than $1 Billion invested in solar technologies and services. Energy efficiency and battery technologies also saw strong attention from VCs in 2007. Venture Power sees continued investor attention in solar power and energy efficiency in 2008.

2007 saw a total of 222 VC funding rounds, almost double the previous year, with solar and biofuels leading the way. Despite a high average round size of ~$15M, the median round size remained steady, indicating some sanity in the VC world. In a VC environment favoring late-stage investment, VC investors still put much of their effort into Seed and Round A financing in renewables.

Subscriber Testimonial

"As always, by far the best coverage of the cleantech private company markets."

— Erik Straser, Partner at Mohr Davidow Ventures

About the Authors

 src=Eric Wesoff, Senior Analyst, Greentech Media

Prior to joining Greentech Media, Eric Wesoff founded Sage Marketing Partners in 2000 to provide sales and marketing-consulting services to venture-capital firms and their portfolio companies in the alternative energy and telecommunications sectors. Mr. Wesoff has become a well-known, respected authority and speaker in these fields. He also was the publisher of the Venture Power newsletter, a subscription-only newsletter covering venture-capital investment in renewable energy. Eric's expertise covers solar power, fuel cells, biofuels and advanced batteries. His strengths are in market research and analysis, business development and due diligence for investors. He frequently consults for energy startups and Silicon Valley's premier venture capitalists.

Michael Kanellos, Senior Analyst, Greentech Media

Michael Kanellos is a senior analyst at Greentech Media, where he studies emerging technologies and companies in the green world. Prior to joining the company in 2008, he worked for CNET Network's News.com for eleven years. Among other jobs at CNET, he launched the company's push into clean technology. He has appeared on NPR, CBS, CNBC, Fox News and other media outlets and has spoken at CES, the Japan Business Strategy Summit, Ceatec, the Irish Software Association, Stanford, U.C. Berkeley, the Flash Memory Summit and Clean Energy Venture Summit. A graduate of Cornell University and the University of California (Hastings), he has worked as an attorney and a travel writer.

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