by Nick Bruse
A new report co-authored by the Cleantech Network and Cleantech Ventures will be released today that details the PE & VC investment occuring in Australian cleantech companies.
At the launch breakfast this morning we heard from Jan Dekker (CV) and Anastasia O’Rourke (CN) present the key findings of the study. I’ve summarised some of these below, but you can download the full report from the Cleantech Ventures website.
- A$540m of venture capital dollars invested from 1999-2007
- 174 rounds in 75 companies
- Around 3% of total VC invested
- 66 IPOs between 1974-2006 and 24 in 2005-06 alone
The Cleantech space in Australia is becoming more and more interesting as international and domestic investors are realising that Australian cleantech investment opportunities are relatively untapped, compared with the rest of the world.
Key drivers that are seeing a growth in the sector in Australia are:
- commodity boom increasing economic activity
- technology readiness from research institutions
- environmental pressures including water shortages and climate change impacts
- increasing policy push as a result of upcoming election
- strong media interest in the sector
- increasing capital availability
However there still remains some challenges for Australian Cleantech including:
- lack of early stage capital
- more technology transfer to business required from Australian University and Research institutions
- more corporate venture funds and company investment & engagement required
- stronger policy particularly around Mandatory Renewable Energy Targets, emissions trading and Kyoto
- better analyst coverage of listed companies
By way of reference Cleantech Ventures has screened around 450 companies and made 11 investments via its CEGT fund over the last 4 years. In October this year Cleantech Ventures announced it has completed the first close of its new Cleantech Australia Fund.
The fund’s first closing of $50 million is made up of $20 million provided through the Australian government’s Innovation Investment Fund (IIF) program and $30 million from VicSuper, a superannuation fund committed to sustainability.
Article posted from The Cleantech Show
Nick Bruse is runs Strike Consulting, a growth venture consultancy specialising in the cleantech sector and hosts The Cleantech Show, a weekly podcast of interviews with leaders involved in clean technology research, entrepreneurship, commentary and investment.