The PE Data Center Buzz

Private Company Valuations: Cleantech

Posted by Justin Byers, Lead Business Intelligence Analyst on May 22, 2008

Clean Technology has quickly become one of the top investment focuses for many investors. Below are some of the findings that the PEDataCenter.com business intelligence team uncovered concerning some of the top Clean Tech investment deals of Q4 2007:

• Boston-Power, Inc. received a boost of approximately $45 MM. Some of the participants of this Series C round of funding included Venrock Associates, Oak Investment Partners, and Gabriel Venture Partners. The round included Participating Preferred stock with a 3x cap on the participation and Non-Cumulative dividends of 8%. This gave the company a post-money valuation of $152,800,374.

  
  

• How about Purfresh, Inc. (formerly Novazone, Inc.) closing a $25 MM Series C round? Investors in this round included Chilton Investments and Foundation Capital. The Series C stock was Conventional Convertible and the anti-dilution protection was Weighted Average. The post-money valuation came out to be $88,354,448.

  
  

• Energy and Power Solutions, Inc. out of Costa Mesa, California raised $20 MM. One of the investors participating in this round was NGEN Partners LLC. The Series A stock that was offered was Participating Preferred, and it did not have a liquidation cap. The 8% dividends were Non-Cumulative. This round of financing has the post-money valuation at $23,531,539.

  
  

After inputting the data into our Cost of Capital Benchmark tool, we see that Boston-Power and Purfresh received the more "company friendly" capital.

Keep in mind, the lower you are on the chart, the more company-friendly the money, the higher you go on the chart, the more investor-friendly the money. If you are a company raising money, you want be lower on the chart. This is a time when it is not best to be on top if you are the company raising money.

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