Published on May 13th, 2016 | by Joshua S Hill0
Smart Grid, Storage, & Efficiency Companies Raise $375 Million In Venture Capital
May 13th, 2016 by Joshua S Hill
April figures from Mercom Capital show that, together, smart grid, battery storage, and efficiency companies raised $375 million in venture capital in the first quarter of 2016.
Mercom Capital Group, a global clean energy communications and consulting firm, published its first quarter funding and Merger & Acquisition (M&A) numbers for the smart grid, energy storage, and efficiency companies last month, with the three sectors globally raising $375 million. Specifically, smart grid companies raised $110 million; battery storage companies raised $54 million; and efficiency companies raised $211 million.
Venture Capital (VC) funding for smart grid companies — including private equity and corporate venture capital — increased twofold for the first quarter, with $110 million raised over 14 deals. This compares favorably with the fourth quarter of 2015, which saw $56 million raised over 12 deals, but drops slightly on a year earlier, which saw $185 million raised over 15 deals. For 2015, the smart grid industry attracted a cumulative $425 million in funding over 57 deals — putting 2016 already a quarter of the way to matching that figure.
The top VC-funded smart grid company was mPrest, which raised $20 million in VC funding from GE Ventures and OurCrowd. The remainder of the top 5 are as follows:
In additional transactions throughout the quarter, the smart grid sector saw two debt and public marketing financing deals, totaling $214 million, compared to $3.5 million in one deal in Q4’15. There were also two smart grid M&A transactions in the quarter, compared to nine in the previous quarter.
VC funding for the battery/storage market in the first quarter was down on all previous quarters, raising only $54 million in 10 deals. That compares with $69 million over 7 deals in Q1’15, and $108 million over 8 deals in Q4’15. The top VC-funded battery/storage company was Sunverge Energy, which raised 67% of the total global quarterly funding in one transaction, raising $36.5 million from a consortium of Australian-based and -linked investors. The remainder follow:
The battery/storage market saw two debt and public market financing deals, totaling $29 million compared to $32 million over three deals in the previous quarter. Green Charge Networks raised $20 million for a non-recourse project financing for energy storage systems. There were also two M&A transactions.
Venture capital funding for the global efficiency sector reached a steady $211 million in 14 deals in the first quarter, staying steady with recent trends over the previous four quarters. The top efficiency transaction was a $70 million deal raised by Renew Financial from a group of six investors.
Two efficiencies companies raised $238 million in debt and public market financing during the quarter, compared to $216 million over two deals in Q4’15. Renovate America announced its second green bond, and its sixth overall securitization of PACE bonds of $217.5 million. Three M&A transactions were recorded in the efficiency sector for the quarter.
Buy a cool T-shirt or mug in the CleanTechnica store!
Keep up to date with all the hottest cleantech news by subscribing to our (free) cleantech daily newsletter or weekly newsletter, or keep an eye on sector-specific news by getting our (also free) solar energy newsletter, electric vehicle newsletter, or wind energy newsletter.