At first glance, it's a gloomy picture. The year has been marked so far by escalating liquidity issues in the U.S. banking sector that were triggered by the sub-prime mortgage crisis. Fear of a global financial crunch marred the first quarter, as did talk of a coming U.S. recession. As a result, the pace of large private-equity deals has slowed dramatically and many banks, real-estate investment trusts and hedge funds have suffered massive losses. As of April 30, financial institutions reported write-downs of $280 billion (U.S.) related to the sub-prime meltdown.

The U.S. dollar, meanwhile, has taken it on the chin. One of the impacts of the weakening Greenback has been dramatically higher oil prices. It's difficult to believe that a barrel of oil was sold in the open market for just $8 (U.S.) in January 1999. Those days are gone. In late February the price closed above $100 for the first time, and on May 9 it passed $126. Most analysts agree that the price will not significantly subside anytime soon, and some are even predicting oil at $200 a barrel within two years. Another major driver is soaring demand from China and India, two rapidly growing economies with voracious appetites for crude.

True, these dynamics have led to volatile market conditions and threats of economic slowdown in some regions. Yet we also see this as a time of great opportunity for agile young companies in the cleantech sector. The Emerald team is convinced that in certain segments the macro drivers for strong growth are still in place. Nimble start-up companies with the right management team and investor support are often best equipped to capitalize. We have invested in four exciting new cleantech ventures this year. To learn more, please read on:

In this edition >>

New Investments: Arxx, Emergya Wind, Schmack Biogas, Senscient

Portfolio Update: Spotlight on Xunlight

Industry News: Building on a green megatrend

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Emerald Technology Ventures is pleased to announce the seventh annual European Energy Venture Fair (EEVF) will be held September 22nd to 23rd, 2008 at the Swiss Re Center for Global Dialogue in Zurich/ Rüschlikon. This "by invitation only" event is designed to strengthen relationships and facilitate discussions amongst the leading energy and cleantech investors in Europe. The conference also provides investors the opportunity to meet a select group of up-and-coming cleantech companies looking for financing. The 2007 conference was an enormous success attended by over 100 investors, representing 70 independent fund and corporate venture capital investors. For more information on EEVF 2008 please visit www.europeanenergyventurefair.com EEVF Initiating Partner