M&A Activity
There were no M&A transactions involving the four reported sectors during the quarter.
While unusual, the lack of M&A activity is not surprising since the clean tech and alternative energy sectors have only recently (the last 24 months) shown new life due to the rising cost of fossil fuel energy sources which now make these alternatives more cost effective by comparison. Still, many of the investments are confined to the early and middle stages of Seed, series A and series B rounds and thus take time to come to fruition.
Our forecast is that M&A activity in the next 18 to 24 months will pick up, as the technologies become more proven, execution risk is reduced and the market opportunities are better defined.
Table 2
Venture M&A Activity – 1st Quarter 2008
| Industry |
M&A
Transaction Amounts |
% Change
Vs. Prior
Quarter |
M&A
Number of
Transactions |
% Change
vs. Prior
Quarter |
| Alternative Energy |
-- |
N/A |
-- |
N/A |
| Clean Technology |
-- |
N/A |
-- |
N/A |
| Energy |
-- |
N/A |
-- |
N/A |
| Environmental |
-- |
N/A |
-- |
N/A |
| Total |
-- |
N/A |
-- |
N/A |