Q3 2009 TechCrunch Trends Report Out »
Q3 09 Analysis: Top Venture Firms Focus Investment on CleanTech, BioTech
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by Daniel Levine on October 20, 2009

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Some of Silicon Valley’s savviest investors are focusing on CleanTech and BioTech. TechCrunch’s Q3 09 report shows that Kleiner Perkins Caufield & Byers, New Enterprise Associates and Flagship Ventures are 3 of the 11 most active venture firms in Q3 09. And all three made more than half of their Q3 09 investments in CleanTech/BioTech. No other firm had more than 3 investments in the two categories combined.

Kleiner Perkins Caufield & Byers continues to move aggressively into CleanTech/BioTech. The firm  was the second most active investor in CrunchBase in Q3 09, recording 10 investments. Of those, 4 were in BioTech and another 2 were in CleanTech. In Q2 09 KPCB had 12 investments recorded in CrunchBase, of which 5 were in CleanTech/BioTech. The firm has traditionally been IT-focused, boasting investments in the likes Amazon, Google and Sun, but apparently those days are behind it. For further evidence of the shift, a look at the KPCB website shows that the firm divides its portfolio into 6 broad initiatives — GreenTech, iFund, Information Technology, Life Science, Pandemic (BioDefense) and Other. Of the ~ 120 investments it makes public online, 42% are in GreenTech, Life Science and Pandemic. KPCB’s Q2 and Q3 investments reveal that its move away from IT continues.

KPCB is not alone, CrunchBase lists 8 investments by New Enterprise Associates in Q3 09.  Three of those were in CleanTech and 2 in BioTech. Last quarter, NEA made 7 investments and while 4 were in BioTech, none were in CleanTech. The firm continues to show commitment to these categories. Flagship Ventures made 7 investments in the quarter, 4 in BioTech and 2 in CleanTech. The firm doubled-down compared to last quarter, when it recorded only 3 investments in CrunchBase, but even then 2 of them were in BioTech.

The Department of Energy also made substantial investments in CleanTech in the quarter, continuing to spend the $2.4 billion dollars set aside to further the development of plug-in electric vehicles. Included in those investments is $529 million for Kleiner-backed Fisker Automotive and $249 million for A123 Systems. A123 Systems also successfully IPO’d during the quarter, giving the quarter’s most active investor, Sequoia Capital, a successful exit.

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