Clean-Energy Venture Funding Almost Doubles

BOSTON (TheStreet) -- Clean-energy investments outpaced software funding in the third quarter, buoyed by the Obama administration's support of technology to reduce America's reliance on oil.

Venture capital firms invested $4.8 billion in 637 deals from July through September, according to a report from PricewaterhouseCoopers and The National Venture Capital Association.

Government spending on early-stage research projects has been a driving force in the funding of clean-energy companies, according to Emily Mendell, vice president of strategic affairs for the NVCA. Clean-energy funding has been a priority of the American Recovery and Reinvestment Act of 2009, which was passed to pull the U.S. out of the longest recession since the 1930s.

Biotechnology scored the most money for the quarter, with $905 million allocated for 104 deals, compared with $947 million and 90 transactions in the second quarter, according to the report, which was based on data from Thomson Reuters(TRI Quote). Funding for clean technology -- alternative energy, pollution and recycling services, power supplies and conservation -- jumped 89% to $898 million for 57 deals. The biggest transaction in the period was for Solyndra Inc., which designs solar panels and mounting hardware. The company received a funding round totaling $286 million. Clean technology accounted for three of the top 10 deals.

The software industry received $622 million for 128 deals, compared with $680 million for 141 rounds of funding in the second quarter. That was the lowest level in 13 years, before the dot-com bubble. Semiconductors, health-care services, computers and peripherals, and telecommunications also suffered declines.