Proving the Business Case for the Internet of Things

VC funding in smart energy sector up 54%

Steve Rogerson
October 30, 2019



Global venture capital funding for battery storage, smart grid and energy efficiency companies in the first nine months of 2019 was 54% higher at over $2bn compared with $1.3bn raised in the same period last year, according to Mercom Capital Group.
 
This includes venture capital, private equity and corporate venture capital.
 
Total corporate funding including venture capital funding, public market and debt financing for the sectors was down at $2.7bn compared with $3.3bn in the first nine months of 2018.
 
VC funding for battery storage companies was up 104% with $1.6bn in 25 deals compared with the $783m in 38 deals last year. The increase was primarily due to Northvolt’s $1bn funding round in Q2 2019.
 
The top five battery storage VC funding deals in the period were Northvolt raising $1bn, Sila Nanotechnologies raising $170m, Energy Vault raising $110m, Romeo Power securing $89m and Form Energy raising $40m. A total of 60 VC investors participated in battery storage funding in this period.
 
Announced debt and public market financing activity in the first nine months of 2019 totalled $560m in seven deals, 24% higher than the first nine months of 2018 when $450m was raised in nine deals.
 
There were ten (two disclosed) battery storage M&A transactions in the first nine months of both 2019 and 2018. In the first nine months of 2019, there were eight project M&A transactions (two disclosed) compared with seven undisclosed transactions last year.
 
VC funding in smart grid companies in the period was 27% lower with $194m compared with $264m last year. The top five VC funding deals were: eSmart Systems raised $34m, SmartRent raised $32m, CleanSpark raised $20m, Volta Charging raised $20m and Innowatts received $18m. A total of 63 VC investors participated in smart grid funding in the period.
 
Announced debt and public market financing for smart grid companies came to $45m in two deals compared with $1.3bn in three deals last year. This year, there were 23 smart grid M&A transactions (one disclosed), compared to nine deals (all undisclosed) last year.
 
VC funding for energy efficiency companies in the first nine months 2019 was flat with $268m compared with the $265m raised in the same period last year.
 
The top five VC funding energy efficiency deals were: Kinestral Technologies raised $100m, Budderfly raised $55m, Cimcon Lighting raised $33m, Carbon Lighthouse secured $33m and 75F received $18m. A total of 33 VC investors participated in energy efficiency funding in the period.
 
Announced debt and public market financing activity in the first nine months of 2019 was $56m in two deals, 74% lower than last year when $212m went into two deals. There were nine energy efficiency M&A transactions (two disclosed) compared to three transactions (all undisclosed) last year.