Second-quarter investments in Tendril and Gevo are in the top five
nationally for "new energy" companies.
Two Colorado-based "new energy" companies — Tendril Networks and Gevo — received major venture-capital infusions in the second quarter, according to an Ernst & Young LLP analysis.

Boulder-based Tendril, maker of smart-electricity-grid software, received $30 million in funding; Gevo, an Englewood alternative-fuels producer, got $40 million, according to the analysis.

The two investments were among the top five reported venture-capital deals nationwide for clean-energy and environmental-technology companies in the quarter, Ernst & Young said.

The deals were part of a surge in venture-capital investment in the sector, with a 73 percent jump over the first quarter to $572 million.

First-quarter deals were cut back by the recession, said Jeff Grabow, an Ernst & Young clean-tech leader.

"We are seeing risk capital return," Grabow said. "That's a good sign for the market."

In April, Gevo, which retrofits existing ethanol plants to make renewable butanol fuels, got $40 million in funding led by the French oil company Total SA, according to the Ernst & Young analysis.

"We are combining biotechnology, engineering and chemistry in a way our competitors haven't done," said Brett Lund, Gevo vice president.

The financing will get the company through development to the commercial stage, Lund said.

The Total-Gevo investment represented the single largest alternative-fuels deal in the quarter.

Tendril, which makes software to help consumers and utilities track and manage electricity consumption, received the $30 million led by VantagePoint Venture Partners and Good Energies.

"We are beneficiaries of being in the smart-grid space, which has been one of the few growing sectors," said Mark Pougnet, Tendril's chief financial officer.

The funding will help to continue research and development and build the company's sales and marketing capabilities, Pougnet said.

Overall, companies focused on energy and electricity generation received $157 million, or 27 percent of all investment, in the quarter, and solar deals captured $148 million, or 26 percent, according to the Ernst & Young analysis.

"This is a new field, and it will need a lot of capital," Grabow said.

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$572 million

Venture-capital investment in the clean-energy sector during the second quarter, up 73 percent from the first quarter

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Tendril Networks

Where it is: Boulder
what it does: Maker of smart- electricity-grid software
What is got: $30 million from investors including VantagePoint Venture Partners and Good Energies

Gevo

Where it is: Englewood
what it does: Alternative-fuels producer
What is got: $40 million from investors including French oil company Total SA