By Jessica Lillian | Solar Industry
Reflecting the dominant industry trends, solar funding during the first quarter of 2013 (Q1’13) favored project acquisitions and funding of downstream providers, as investors shied away from the struggling manufacturing segment.
In all, global venture capital (VC) investments in the solar sector fell dramatically, from $220 million in the fourth quarter of last year to just $126 million in Q1’13, according to a new report from Mercom Capital Group.
Raj Prabhu, CEO of Mercom Capital Group, says that because an overall downturn began in the third quarter of last year, this most recent slump was mostly in line with expectations – if a bit more severe than anticipated. Solar VC funding had not fallen to such low levels since 2008.
At least some of the recent decline can be attributed to major attrition among formerly hot startups representing a traditional VC favorite: thin-film solar manufacturers.
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