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SEF Alliance PublicationsPublic Venture Capital Study
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© new energy finance 2008 and UNEP 2008 | Copyright and Disclaimer notice applies throughout.
Contents Executive Summary ................................................................................. 1
List of Case Studies and Box Outs ........................................................... 6
Introduction .............................................................................................. 7
Objectives and Approach ......................................................................... 8
Methodology and Definitions .................................................................... 9
Part I: Private Venture Capital: Role & Financing Gaps .......................... 10
Part II: Public Venture Capital ................................................................ 23
Part III: How to Approach Public Venture Capital ................................... 33
Part IV: Portfolio Analysis ....................................................................... 44
Conclusions and Looking Forward ......................................................... 52
Appendices ............................................................................................ 54
About us ................................................................................................. 55
© new energy finance 2008 and UNEP 2008 | Copyright and Disclaimer notice applies throughout. 1
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Figure 5: Public Venture Capital Fund Investment Roadmap
Source: SEF Alliance Public Venture Capital Study, New Energy Finance
Figure 6: Decision Framework for Selecting Fund
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Source: SEF Alliance Public Venture Capital Study,
New Energy Finance
© new energy finance 2008 and UNEP 2008 | Copyright and Disclaimer notice applies throughout. 5
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© new energy finance 2008 and UNEP 2008 | Copyright and Disclaimer notice applies throughout. 7
Introduction !
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1 Total new investment includes venture capital & private equity, asset finance, research & development, public markets, small scale projects, mergers & acquisitions, and management buy-outs. Source: New Energy Finance
© new energy finance 2008 and UNEP 2008 | Copyright and Disclaimer notice applies throughout. 8
Objectives and Approach !
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2 This would include such managed funds as CalPERS (The California Public Employees’ Retirement System) that manages
pension and health benefits for California public employees, retirees, and their families. While CalPERS is a limited investor in many clean energy funds, it was founded to manage retirement funds for commercial gain of its stakeholders, rather than created for purpose of financing clean energy innovation.
© new energy finance 2008 and UNEP 2008 | Copyright and Disclaimer notice applies throughout. 9
Methodology and Definitions !
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5 EMEA investment also includes the Middle East and Africa, but the latter regions represent little investment activity such that it “EMEA” is generally considered a good proxy for Europe.
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Annual average 2004-2005 Annual average 2006-2007
Total:$2.5bn
ASOC$137m pa, 10.8%
AMER$747m pa, 59.1% EMEA
$379m pa, 30.0%
EMEA$480m pa, 16.2%
ASOC$395m pa, 13.4%
AMER$2,079m pa, 70.4%
Total:$6.0bn
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Figure 16: Global VC & PE Clean Energy Investment by Region &
Contribution of Stage, 2002 -2007: %
Note: Grossed-up values based on disclosed deals. The figure represents the
relative contribution by each stage as a percentage of the total venture capital
raised.
Source: New Energy Finance
Figure 17: VC & PE Clean Energy Investment by Selected Country
& Contribution of Stage, 2002 -2007: %
Note: Grossed-up values based on disclosed deals. The figure represents the
relative contribution by each stage as a percentage of the total venture capital
raised for selected countries.
Source: New Energy Finance
© new energy finance 2008 and UNEP 2008 | Copyright and Disclaimer notice applies throughout. 18
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Annual average 2004-2005 Annual average 2006-2007
Total:$4.2bn
Total:$1.5bn
Canada$53.2m pa, 7.1%
Rest of AMER$2.6m pa, 0.4%
$78.3m pa, 3.8%
United States$691.2m pa, 92.5%
$1,997.9 m pa, 96.1%United States
Rest of AMER$3.1m pa, 0.1%
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Part II: Public Venture
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Part III: How to Approach Public Venture Capital
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Conclusions and Looking Forward !
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© new energy finance 2008 and UNEP 2008 | Copyright and Disclaimer notice applies throughout. 54
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Venture capital investment will play a criti-‐
cal role in the discovery and development
of clean energy technologies. This report
examines the current clean energy venture
the role of public sector-‐sponsored venture
-‐
mercialisation of clean technologies. It also
looks at the core commonalities and differ-‐
ences in the approaches, structures, and
metrics of success for existing public ven-‐
ture capital funds.
283-‐288 New Penderel House
High Holborn
London WC1V 7HP
+44 20 7092 8800
c/o BASE – a UNEP Collaborating Centre
Elisabethenstrasse 22
4052 Basel, Switzerland
+41 61 283 0918
www.sefalliance.org
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