A slew of venture capital and private equity funds are raising money into clean-tech funds focused on Asia.
We had discussed earlier this year that most of the fund-raising in Renewable Energy and Cleantech in India is happening in mega project developments and developers.
Investors have also shown a lot of interest in this sector and according to data from Venture Intelligence, $1.5 billion has been invested by venture capital and private equity firms into clean energy developers from 2008 to date. Indian Cleantech sector has witnessed an investment of about $465 million from 2008.
However, deals have been hard to come by and most of the funds are crowding around the same kind of available deals that are far and few between.
According to reports, VenturEast is targeting €200 million ($290 million) for its Life Fund 3, with around 40% already committed, its general partner Chandar Shekhar Kundur said today at a conference on Asian clean-tech organised by the London Environmental Investment Forum.
The fund invests in clean-tech and life sciences companies in India, and it has already made five investments, Kundur said.
The fund looks for “the significance for climate change” in making investments, he added, which has steered VenturEast away from power generation towards sectors such as organic farming, he said, citing detailed comparisons of the carbon dioxide equivalent that can be saved per million dollars invested. However, it focuses on investments that are not dependent on carbon credits for revenues. “If there are carbon credits to be generated, it’s incidental,” Kundur said.