Ernst & Young has announced Clean Tech investment is at record levels as a new investment fund is looking to focus on Israel’s clean tech.
International accounting firm Ernst & Young estimates fully 11% of global venture capital funding will go to clean technology in 2008, up from just 1.6% of VC investments five years ago.
The US is home to the majority of companies funded according to the study, but Europe, China and Israel are all significant players as well. The biofuel and solar sectors are the hottest, of which Israel is thus far most involved in the solar sector.
Beyond almost $9 billion in venture capital money invested in clean tech, Ernst & Young estimates that institutional investors put $23 billion into clean-tech equities and private equity investors put another $50 billion into the clean technology investments in 2007.
As Ernst & Young was preparing its data for the public, Canadian-American businessman Michael Bronfman was already getting ready to take advantage of the green tide and announced the placement of former Israeli Ambassador to the UN Dan Gillerman as chair of Israel Opportunity Funds.
Israel Opportunity Funds aims to invest in alternative energy, water technology and agricultural endeavors backed by Israel. Gillerman says the investments will go to Israeli companies or to ‘firms that operate in markets where Israel has advantages, such as Eastern Europe.’
The fund will be based out of Tel Aviv’s Discount Tower, and is reportedly seeking European investors.