Clean tech investment drops in 1st quarter-surveys

By David Lawsky

SAN FRANCISCO, April 1 (Reuters) - Worldwide investment in clean technology suffered a steep decline in the first quarter of 2009 as the difficulty of pushing through initial public offerings (IPOs) of start-ups across many sectors hit record lows, three surveys showed on Wednesday.

Although the surveys used different methodologies, their messages were the same -- investment is down in clean tech and other areas and it won't rebound in the near-term.

Deloitte and Cleantech Group reported that investment in clean technology dropped 41 percent in the first quarter, compared to the last quarter of 2008.

Greentech Media surveyed a different set of clean tech companies but its overall conclusions were the same:

"The numbers are approximately back to 2007 levels," Greentech said. It found 59 deals worth $836 million, while Cleantech -- which included China and India -- found 82 deals worth $1 billion.

Eric Wesoff, author of the Greentech Media study, said that the IPO situation would not improve soon.

"Before we see a wave of IPOs in 2012, we're going to see attrition and consolidation in the next couple of years," he said. He predicted that of more than 200 solar companies founded in the past two years only 20 will survive, based on historic patterns.

"Clean tech venture investments have now declined for two consecutive quarters since peaking at $2.6 billion" in the third quarter of 2008, Cleantech reported. Cleantech said the lack of money has forced companies to turn to government.