Wave and Tidal Venture Capital Financing
Wave energy technologies are the most heavily researched and funded sector in the ocean power industry. Tidal energy technologies have received relatively less attention than wave energy technologies, despite their comparative success in commercial deployment and in lab and in-water testing. Out of the 35 companies analyzed by Greentech Media and the Prometheus Institute for Sustainable Development, 24 are developing wave energy technologies and only 11 are developing tidal energy technologies. Venture capitalist and the capital markets discovered the ocean power industry for the first time in 2003. Large amount of VC funding raised by Oceanlinx and Pelamis Wave Power, as well as Ocean Power Technologies's first IPO on London's AIM, drove investment in 2008. There was only one VC deal in 2005, and investment was pushed to a modern record on the back of 10 large DII funding grants, eight of which number in the millions of dollars. 2006 was relatively dry in terms of VC and government grants. Funding in 2008 occurred largely through non-VC equity financing arranged as follow-on investments for VC deals in 2007. Advanced ocean power companies pursuing full-scale prototype installations began to break away from the pack in 2006, moving into 2007 on the top of bigger VC rounds and the industry's first significant IPO. Three companies each raised $15 million VC in 2007, while Ocean Power Technologies managed a $90 million IPO on the Nasdaq. Also in 2007, they got serious about building a world-class ocean power program, doling out £13 million in DII grants to eight ocean power technology companies and one water transport company. The VC/PE investment by technology is shown below. The VC/PE Investment by Technology (2008), in $ billions Source: New Energy Finance Prominent Investment Companies Active in Ocean Energy Investments
