Monday, January 11, 2010

Green VC Investment Rose/Fell In 2009(?)

Fun with Statistics:
It was amusing to see these two reports next to each other on BusinessWeek's Green Energy news index. The first headline was:

"Cleantech Takes A Bigger Slice Of VC Pie, Again"

Promptly followed by:

"Green-tech venture investing cools off in 2009"

A quick read reveals, unsurprisingly, the classic apples and oranges comparison between percentages and hard numbers. The 'Bigger Slice' story, from BusinessWeek's subsite, stated that, "close to 20% of all dollars invested by VCs in 2009 went into clean technology, up from roughly 14.4% in 2008."

Ah, but 20% of what, exactly? That story never did get around to the size of the pie and hence of a slice, probably because then they'd have to come up with another, less appetizing headline.

That fell to the story that followed, from CNet's Green Tech blog, which explained that, "The amount of venture capital that went toward green-technology companies fell to $4.85 billion in 2009, compared to $7.6 billion in 2008. Solar continues to garner the most attention, having brought in $1.4 billion with 84 deals in 2009."

Biofuels received $975 mil, with energy efficiency and the smart grid, automotive, and batteries and other types of storage divvying up the remaining half.

"Greentech Media analyst Eric Wesoff predicts that there will be a wave of IPOs in green tech as well as more mergers and acquisitions, particularly in the crowded solar market.

"There will be more money available for expansion in 2010, but investors will remain cautious and focus on companies with the most potential, largely investing in emerging leaders and high-potential outfits."

"Green-tech venture investing cools off in 2009"
by Martin LaMonica, CNet, 12/30/09

Looks like I'm not going to be able to resist invoking Mark Twain's famed and mildly profane judgment on the subject of statistics:
"There are three kinds of lies. . ."

Related, here:
25 Posts tagged Green Tech

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