Living Green

San Francisco —- Cities across the nation are trying hard to become the next Silicon Valley for environmentally sensitive "clean" technology.

But most of the seed money for the next big thing in high tech is still going where most venture capital funding has historically gone —- to Silicon Valley.

A study from Dow Jones VentureSource indicates that more than half of all clean-tech venture capital in the United States last year went to California companies.

A total of 66 of them, most in the Silicon Valley region stretching from San Jose to San Francisco, got $1.3 billion in venture capital funding last year, according to the study by the online database.

Nationwide, 159 clean-tech companies received about $2.5 billion in funding.

In Georgia, two clean-tech companies landed $12.5 million in venture funding last year, the study found. Among them was Sterling Planet Inc., a Norcross-based renewable energy consultancy.

The study found the No. 2 state for venture capital deals was Massachusetts, with 11 deals worth $273 million, and No. 3 was Colorado, with eight deals worth $64 million. Most of the Colorado companies were in the Boulder area.

The United States led the world in clean-tech investing last year, according to Dow Jones VentureSource. U.S. companies accounted for about 83 percent of the approximately $3 billion invested globally in clean tech companies.

Clean-tech venture funding was up 80 percent in the United States last year, compared with 43 percent globally.

Jessica Canning, director of global research for Dow Jones VentureSource, said California leads the nation in clean-tech funding mainly because the state is home to the majority of venture capital firms.

"Venture investors typically like to invest in their own neighborhoods," Canning said. "It's not just that they're buying shares in a company, they're serving as an adviser, serving on their boards, and it's difficult to do that from a distance."

As clean technology continues to grow, venture capital funding in other parts of the country should increase, she predicted.

"It's still really early on, and investors still are at a stage where they're just kind of reviewing the overall market," Canning said. "I do think clean technology in particular will see more regional diversification going forward."

What types of clean technologies do venture capitalists like most?

Solar-related technology companies got the biggest share —- about 30 percent —- of capital last year. Transportation technology companies received about 14 percent, and biofuel companies got about 12 percent.

The single biggest investment went to Project Better Place, a Palo Alto, Calif.-based maker of electric cars that got $200 million.

CLEAN-TECH VENTURE FUNDING

State ........Deals in 2007....Amount invested

California........66 ............$1.3 billion

Massachusetts ....11 ............$273 million

Colorado ..........8..............$64 million

Washington ........8 ............$175 million

New York ..........7..............$29 million

New Mexico ........6 ............$130 million

North Carolina ....4............$31.5 million

Illinois ..........3............Not available

New Jersey ........3..............$23 million

Ohio ..............3..............$14 million

Pennsylvania ......3..............$18 million

Georgia............2............$12.5 million

Texas..............1 ............$101 million

Industry......Amount invested ....% of total

Solar ..........$694 million ....30.5 percent

Transportation..$311 million ......14 percent

Biofuels........$264 million ......12 percent

Power efficiency

mgmt............$163 million........7 percent

Agriculture ....$128 million........6 percent

Natural gas ....$120 million......5.3 percent

Fuel cells ......$99 million........4 percent

Energy efficient

products ........$93 million........4 percent

Construction ....$81 million......3.5 percent

Batteries........$76 million........3 percent

Source: Dow Jones VentureSource