VCs continue to seek energy deals

Venture investments into companies concentrating on clean technologies--alternative energy, water filtration systems--hit $513 million in the first quarter, a 52.9 percent increase over the same period the year before and a slight increase from the fourth quarter.

The average deal size also went up to $8.28 million, up 16.7 percent from a year ago. In all, sixty seven deals were consummated in the first quarter, down from the fourth quarter, but up 37 percent from the same time a year ago.

“The $357 million invested in energy accounted for nearly 70% of all cleantech Q1 investments and 48% of the total energy investment made in 2005,” said Keith Raab, CEO and Co-Founder of the Cleantech Venture Network, in a prepared statement.

Still, the amount put into these companies constitutes only a small fraction of the amount invested overall by venture capitalists. The $513 represented only 8.5 percent of the total.