During the third quarter of 2009, a total of 35 energy and environmental companies received $421 million in new venture capital financing, representing an 8% decrease in the number of companies being funded and an 8% decrease in the total amount funded to the four sectors of Alternative Energy, Clean Tech, Energy and Environmental.
Alternative Energy companies showed the only deal funding volume percentage increase of the four categories, with a 20 % increase quarter over quarter. The Clean Tech sector showed a sharp decrease in activity, with an 86% decrease in amounts funded. Energy funding amounts were also down, with an 18% funding decrease and the number of companies funded decreasing by 27%.
During the quarter, Software company fundings represented the second largest sector, raising $610 million between 97 companies. This activity represented an increase of 10% in total funding amount and a decrease of 22% in the number of companies funded.
The average financing round size reversed its previous decline and rose sharply, from $4.7 million in Q2 09 to $6.3 million in the current quarter.