More U.S. venture capital pours into clean tech

LOS ANGELES, July 20 (Xinhua) -- Clean technology grew in strength in the United States as increasing amounts of venture capital flowed into the sector in the second quarter of 2008, a new study has shown.

There was no slowdown for the surging clean tech sector, which includes such fields as alternative energy, energy efficiency, recycling and water purification and conservation, said the study appearing in the MoneyTree Report's July issue.

Clean tech investments totaled 884 million U.S. dollars, a new quarterly record -- 340 million dollars more than for the same period a year ago, which was itself a record high at the time, the study said.

Rising energy prices are considered a prime factor in the sector's continuing growth, with organizations seeking alternatives to fossil-based energy sources, the study said.

Meanwhile, investments in the "Internet-specific" sector reached 1.53 billion dollars, a year-on-year increase of 0.5 billion, as more elements of the economy moved to the Web and "cloud computing," according to the study.

It said companies that rely on the Internet as a core component of their business range from flashy, high-profile consumer sites with millions of users to obscure software-as-a-service start-ups that provide back-office tools for businesses.

However, the study also noted that venture funding overall dipped slightly in the period under review.

Overall, U.S. venture firms invested 7.4 billion U.S. dollars in 990 deals, down from 7.5 billion dollars the previous quarter and roughly matching the second quarter of 2007, it said.

The MoneyTree Report is a quarterly study of venture capital investment activity in the United States, produced in collaboration between Pricewater house Coopers and the U.S. National Venture Capital Association.