Venture capital investments in green technologies rebounded in the second quarter, according to a report released by Greentech Media Inc., a Cambridge, Mass.-based online media and research firm.
Investments totaled $1.2 billion in 85 deals in the second quarter, up from $836 million in 59 deals in the first quarter, according to GTM Research, a division of Greentech Media that provides market research.
Solar power led the green technology sectors in the second quarter, with $333.4 million in funding across 17 deals, the report said.
The remaining investments were spread among other sectors, including automotive and transportation, biofuels, energy storage, smart-grid technology, lighting, green information technology, wind and geothermal, water, carbon markets and green buildings.
One of the drivers for second-quarter investment was the promise of stimulus money from the federal government's economic-stimulus plan.
“Despite the economic slumps, VC investors remain optimistic about the green-tech sector,” Eric Wesoff, senior analyst at GTM Research, said in the statement.
The number of deals in green technologies has grown steadily each year to 350 deals in 2008, up from 74 in 2005.