First quarter 2007 North American and European venture investment in the cleantech category totaled $903 million USD, said the Cleantech Venture Network today.

Q1 2007 venture capital investment represented a 16.5% increase over the $775 million invested in Q4 2006 and a 42% increase over Q1 2006 investment of $634 million, the group said.

For the quarter, North American venture capital investment totaled $731 million, an increase of 19% over Q4 2006 and 42% increase over Q1 2006 investment.

European cleantech venture capital investment totaled $172 million, representing a 6% increase over Q4 2006 and a 43% over Q1 2006.

In North America, energy generation took in $398 million, accounting for about 54% of total venture capital investment. In Europe, $98 million was invested in the energy generation category, garnering 57% of total European cleantech investment.

The Cleantech Venture Network also tracks M&As and IPOs in North America, Europe and China. During Q1 2007, there were 24 worldwide M&A transactions (20 in North America) and 9 IPOs (8 in North America) that the group characterized as cleantech companies.

“The increasing amount of venture investment coupled with M&A and IPO activity globally continues to demonstrate the potential for cleantech returns,” said Nicholas Parker, chairman and co-founder of the Cleantech Group, parent company of the Cleantech Venture Network.

The Cleantech Venture Network is a membership group that catalyzes investment, business opportunities and relationships driving the growth of cleantech globally. The group is credited with popularizing the term cleantech in 2002.