At Cleantech Scandinavia we just finished our annual analysis of Nordic cleantech investments. It’s the third year we do this and it allows us to make some observations over time, so here we go!
First and foremost, the total amount of capital attracted by cleantech companies in the Nordics rose to EUR 460,6 million during 2009, compared to EUR 371,9 million in 2008.
This 24% growth rate was achieved primarily because of the increase in public funding activity, which doubled compared to 2008, but it also includes a 9% increase in amounts of private equity investments. At the same time, the number of transactions in 2009 was down 22% compared to the previous year. What this means is that amounts was up per investment and, as you might have guessed, expansion stage companies attracted most of the funding.
Renewable energy remains the major part of all cleantech investments, around two thirds of all investments were made in energy related technologies, including energy generation and energy efficiency.
Waste and recycling related solutions is moving up the venture capital ladder. The number of deals in this investment cathegory was up with 60% durign a year when the number of overall investments has fallen by almost 40%. Waste related legislation is being put in place in an increasing amount of countries across the world (new EU countries, India) and a lot of raw materials are becoming increasingly expensive so this is a trend I think will continue.
As illustrative examples you can have a look at Metallkraft who recycle solar manufacturing slurry and Preseco that do turn-key waste and recycling solutions for inustries. Both got investments last year.
Another big trend is that a lot of money was invested in expansion stage companies. That means those that are over the technology risk and most of the customer risk and are now looking to grow their customer base. Around 70% of the equity that was invested went to these types of companies! Also means that there is likely quite a few seed stage companies struggling to get money...
It is clear this year that international investors have found their way to the Nordic cleatech sector. Five of the twenty biggest deals that were made during the year included international investors. This is a clear change from previous years when only a couple of deals had any international involvment. We notice it in another way at Cleantech Scandinavia. Four of our last members have been non-Nordic companies such as Siemens, BASF, Capricorn and Climate Change Capital.