Together, global smart grid, battery and storage, and energy efficiency companies raised a total of $433 million in financing during the second quarter of 2016, according to global clean energy consulting firm Mercom.
Mercom Capital Group released its funding and mergers & acquisition activity report for the Smart Grid, Battery/Storage, and Energy Efficiency sectors for the second quarter of 2016, this week. Specifically, the smart grid companies took in $222 million in venture capital financing, battery and storage companies $125 million, and energy efficiency companies $86 million.
Venture capital funding for smart grid companies doubled in the second quarter, reaching $222 million over 15 deals, compared to $110 million from 14 deals in Q1’16, and still up on the same quarter a year earlier, which only took in $104 million over 18 deals.
Vivint Smart Home raised the most in venture capital funding during the second quarter, raising $100 million from tech investor Peter Thiel and investment firm Solamere Capital. The top five VC funded companies in Q2’16 are as follows:
A total of 46 venture capital investors partook in smart grid company deals in Q2 compared to only 22 in the first quarter.
Venture capital funding for the battery and storage market also doubled in the second quarter, reaching $125 million across 10 deals, compared to only $54 million across 10 deals in Q1, and well in line with the same quarter a year earlier, which took in $126 million over 13 deals.
Specifically, venture capital funding for the battery and storage market was spared across six sub-technologies, which are lithium-ion batteries, sodium-based batteries, energy storage systems, lead-based batteries, energy storage management software, and thermal energy storage — with lithium-ion battery companies taking in the most funding with $51.3 million over 3 deals.
The largest venture capital funding deal was the $43.3 million taken in by Nexeon from PUK Ventures, Imperial Innovations, Invesco Perpetual, Wacker Chemie, and Woodford Investment Management. The top five venture capital funding deals are as follows:
A total of 20 investors participated in funding for the battery and storage sector in the second quarter, compared to only eight in the first quarter.
Unlike both the smart grid and energy/storage sectors, energy efficiency technology companies saw a dramatic downturn in funding, taking in only $86 million over 9 deals compared to $211 million over 14 deals in the first quarter of the year, and down on the same quarter a year earlier, which also took in $211 million over 18 deals.
The top venture capital funded energy efficiency technology company in the second quarter was Thermondo, which raised $25.6 million in funding from Global Founders Capital, E.ON, Holtzbrinck Ventures, IBB, and Picus Capital. The top venture capital funded companies were:
A total of 18 investors took part in energy efficiency venture capital funding in the second quarter, compared to 31 in the year’s first quarter.