Cleantech Innovation to Find Early-Stage Capital Through a New Partnership of Investors, the Cleantech Angel Network of Networks (CANN)

April 21, 2009

REDWOOD CITY, California - Partners at Kuwait Petroleum Energy Ventures Inc. (KPCEVI), CalCEF Clean Energy Angel Fund (CalCEF), and Keiretsu Forum’s Cleantech Investment Committee signed a memorandum of understanding today to undertake a strategic partnership in cleantech angel investing.

Multiple factors are driving investment into the clean energy sector, including emerging natural resource constraints, concerns about energy security, the need to use hydrocarbon fuels in a more efficient and environmentally sensitive way, and significant technological advances in many clean technologies. The clean technology space, which includes renewable electricity, biofuels, energy efficiency, water treatment, advanced materials, and waste technologies, is currently one of the fastest growing areas for venture capital investment. Dow Jones reports U.S. cleantech investments more than doubled to a record of nearly $3.6 billion in 2008 from $1.7 billion in 2007, in sharp contrast to the overall decline in U.S. venture investing, which was down 8% for 2008 and 30% in Q4 2008.

However, the rapid growth and development of the cleantech venture capital space, which has grown in response to evolving opportunities and catalyzed by the support of institutional investors, such as the California public pension systems, has not been matched by similar growth and development of the cleantech angel space. Organizations like Keiretsu Forum and CalCEF have launched cleantech angel networks and cleantech committees, and CalCEF has an investment fund dedicated to early-stage clean energy investments. But greater focus is needed to fill the funding gap between the “friends and family” round and later-stage institutional investors. The launch of this alliance between three prominent cleantech angel investment partners is intended to create a critical mass of much-needed early-stage funds for the increasing number of clean technology entrepreneurs and innovators. This partnership will bring together angel investors to exchange deal flow information, improve cleantech education, and create a bridge between cleantech entrepreneurs and early-stage investors. This new “network of networks” will allow for deal collaboration, which should enable a greater number of promising cleantech companies to be funded.

With the passage of the American Recovery and Reinvestment Act, the United States is preparing to lead itself and the globe out of troubled economic times with energy innovation, efficiency, and green-collar job creation as centerpieces. This is a critical time for start-ups in the cleantech space to have support from governments, experienced investors and customers. The Cleantech Angel Network-of-networks (CANN) launched today will apply seasoned management know-how with private and institutional capital to grow the very best opportunities, while leveraging governmental support via the stimulus and other programs. Ultimately, this network strives to provide strong financial returns, create green-collar jobs, and vastly improve energy efficiency, renewable energy generation, clean water production and waste elimination.

One of the CANN partners, KPCEVI, recognized the early-stage cleantech opportunity and found collaborative partners in California who are well-positioned to partner on these global investment opportunities. According to Dr. Mohammad al-Ramadhan of KPCEVI, “there is a wealth of opportunities in a very un-crowded early-stage cleantech space. As we were looking for opportunities to build out our cleantech strategy, we found partners such as Keiretsu Forum and CalCEF, who had also identified the need for more angel money and resources. In building this alliance, we will be able to leverage large pools of capital, operational expertise, seasoned professionals and multiple sources of deal flow to accelerate the growth of the cleantech industry.”

About the Cleantech Angel Network of Networks (CANN):

The Cleantech Angel Network of Networks was founded in 2009 by three global partners who recognized the need for early-stage private investment to catalyze the growth of the cleantech industry. The urgent need to address climate change, natural resource shortages, and a growing global population accelerate the need to cultivate innovative solutions in a sector that seeks to address some of the world’s most pressing challenges. CalCEF Clean Energy Angel Fund (CalCEF), Keiretsu Forum Cleantech Committee (K4CT), and Kuwait Petroleum Energy Ventures Inc. (KPCEVI) have come together to bridge their respective networks, access to capital, and market insight to enhance the partners’ collective agenda to catalyze the growth of the cleantech industry by supporting leading ideas and entrepreneurs.

To find out more information about CANN, please visit www.cleantechangels.org