Proving the Business Case for the Internet of Things

VC funding for smart grid companies doubles

Steve Rogerson
May 3, 2016
Venture capital (VC) funding including private equity and corporate venture capital for smart grid companies doubled in the first quarter of 2016 with US$110m in 14 deals, compared with $56m in 12 deals in the final quarter of 2015, according to Mercom Capital Group.
Year-over-year, funding was down compared with Q1 2015 when the sector raised $185m in 15 deals.
The top VC funded smart grid companies included MPrest with $20m, Powerhive with $20m, Smart Wires with $20m, Telensa with $18m and Evatran with $10m.
There were 22 investors that participated in smart grid funding rounds during the quarter. There were two debt and public market financing deals announced by smart grid companies, totalling $214m, compared with $3.5m in one deal in Q4 2015.
There were two smart grid M&A transactions in Q1 2016 compared to nine transactions in Q4 2015 and seven transactions in Q1 2015.
VC funding for battery and storage companies dropped to $54m in ten deals Q1 2016, compared with $108m in eight deals in Q4 2015. Year-over-year funding was lower compared with the $69m in seven deals in Q1 2015.
The top VC funded battery and storage company this quarter was Sunverge Energy, which raised $36.5m, Vion X Energy with $5m, Skeleton Technologies brought in $4.3m, Geli raised $3m, and Voltaiq raised $1.6m. Eight investors participated in battery and storage funding this quarter.
There were two debt and public market financing deals in battery and storage this quarter totalling $29m compared with $32m in three deals in Q4 2015.
Green Charge Networks raised $20m for non-recourse project financing for energy storage systems.
There were two M&A transactions involving battery and storage companies in Q1 2016. In Q4 2015, there were two M&A transactions and, in a year-on-year comparison, there were five transactions in Q1 2015.
Energy efficiency technology companies raised $211m in VC funding in 14 deals compared with $185m in 17 deals in Q4 2015 and $140m in 15 deals in Q1 2015. The top five efficiency deals included $70m raised by Renew Financial, $30m raised by Figtree Financing, $30m raised by Ygrene Energy Fund, $25m raised by Enlighted, and Arctic Sand Technologies raised $19m. There were 31 investors participating in VC funding this quarter.
Two efficiency companies brought in $238m in debt and public market financing this quarter compared to $216m in two deals in Q4 2015.
Renovate America announced its second green bond and sixth overall securitisation of Pace bonds of $217.5m.
There were three M&A transactions in the efficiency sector this quarter compared with ten in Q4 2015.