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Venture capital investment in cleantech companies growing

07 August 2008

A report by Ernst & Young has shown that investment in cleantech companies has increased by 41 per cent in the second quarter of 2008.

Whilst overall venture capital investment is down by almost eight per cent, investment in cleantech companies in the US is the highest it has ever been.

Although a number of sectors make up this sector, including those dealing with energy and electricity generation, energy efficiency companies made up twenty per cent of the overall investment.

The demand and popularity of alternative fuels was confirmed with news that companies in this sector made up 13 per cent of the overall cleantech market in the US.

Joseph A. Muscat, americas director of Cleantech and Venture Capital, Ernst & Young LLP explained the attraction of investments in these sectors: "In a challenging market, investment in the cleantech sector remains strong because these companies provide cross-sector solutions to economic and environmental challenges."