French cleantech attracts €1.22bn in 2018
The cleantech sector in France has seen €1.22bn committed by private equity and venture capital firms, invested across 92 deals, according to the Commission Climat barometer published by French trade body France Invest, in collaboration with GreenUnivers and EY.
Both value and volume are at a historic high since the launch of the barometer, in 2009. The figures show a significant jump in terms of value, particularly compared with 2017, which saw €403m invested across 84 transactions.
Up to €728m (59%) of the total amount of capital committed in 2018 was invested by GPs via 15 buyout and expansion transactions. The remaining €498m was committed by VCs across 78 deals in the form of early-stage investments.
The 16 renewable energy investments alone accounted for €646m – that is 53% of the value of investments last year. The report notes that because the cost of the production of green energy has reduced, these businesses have become more competitive and can meet a growing consumer demand.
Investments related to transport attracted the second largest amount of capital (€184m), invested in 21 deals, while "circular economy" deals attracted up to €111m, invested across eight transactions. In fourth place for value committed was energy efficiency deals, with €92m invested across 21 transactions. Although agriculture technology investments only ranked fifth (€91m), the sum is remarkable since investments have increased more than fourfold in one year (€21m in 2017).
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