Cascadia Capital‘s latest newsletter finds silver lining in gray cleantech investment clouds. Global cleantech financing in the first quarter of 2012 was down 19% compared to Q4 2011 and 31% compared to Q1 2011. Average deal sizes decreased significantly, as well. However:
- 44% of all of Q1 financings were early stage. Investors are more comfortable with risks in early stage deals. Secondly, early stage companies have business models and technology that investors find attractive.
- The Mergers and Acquisitions market picked up in Q1 2012–$15.1 billion in deals were announced, which was a significant increase from Q4. Cascadia Capital expects M&A in the sector to continue to be robust into the forseeable future.
Source: Cascadia Capital, Newsletter, June, 2012.