Global clean energy communications and consulting firm, Mercom Capital Group, has released its report on funding and mergers & acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for the first quarter (Q1) of 2019. In Q1 2019, $210m was raised by Battery Storage, Smart Grid, and Energy Efficiency companies, a decrease from the $472m raised in Q1 2018.
Total corporate funding (including VC, Debt, and Public Market Financing) in Battery Storage came to $130m in nine deals compared to $110m in 14 deals in Q4 2018. In a year-over-year (YoY) comparison, $299m was raised in 12 deals in Q1 2018.
Venture capital (VC) funding (including private equity and corporate venture capital) raised by Battery Storage companies in Q1 2019 came to $78m in seven deals down significantly compared to $299m raised in 12 deals in Q1 2018 but up quarter-over-quarter compared to $67m in 11 deals in Q4 2018.
The top VC funded Battery Storage companies this quarter were: Zenobe, which raised $32m from Jera and Tokyo Electric Power Company (Tepco); Sunfire secured $29m from Paul Wurth, Inven Capital, Idinvest Partners, Total Energy Ventures, and Sunfire Entrepreneurs Club; and $17m was raised by Ambri.
Utility and oil and gas funds were active investors in Battery Storage and Smart Grid companies in Q1 2019, including Tokyo Electric Power, Total Energy Ventures, Chevron Technology Ventures, Centrica, and Shell Ventures.
Thirteen investors participated in Battery Storage funding this quarter with Energy Storage Downstream companies raising the most.
In Q1 2019, announced debt and public market financing for Battery Storage technologies increased to $52m in two deals, compared to $44m in three deals in Q4 2018, an 18% increase. There were no debt and public market financing deals announced in Q1 2018.
There were four M&A transactions involving Battery Storage companies in Q1 2019, of which only one disclosed its transaction amount. There were four undisclosed M&A transactions in Q1 2018.
There was one undisclosed project M&A transaction in the Battery Storage category in Q1 2019. In Q4 2018, there were two project M&A transactions, of which only one disclosed the transaction amount. There were no Battery Storage project M&A transactions in Q1 2018.
Total corporate funding in Smart Grid came to $32m in 16 deals compared to $272m in ten deals in Q4 2018. In a YoY comparison, $1.3m was raised in nine deals in Q1 2018.
VC funding for Smart Grid companies decreased in Q1 2019 with $32m in 15 deals compared to $266m in nine deals in Q4 2018. In Q1 2018, $75m was raised in seven deals. The decrease in funding was largely due to ChargePoint’s $240m deal in the fourth quarter.
The top five VC funded Smart Grid companies included: Driivz, which secured $12m from Inven Capital, CEZ’s Group’s Investment Fund, Centrica, and Ombu Group; $6m was raised by EverCharge; Catalyze raised $5m from Innosphere Fund, and Prisma Energy; $4m was raised by Logical Buildings; and SensorFlow secured $3m from Pierre Lorinet, Playfair Capital, Cocoon Capital, Entrepreneur First, 2be.lu Investments, Aurum Land, and Insitu Asia Holdings.
Thirty-two investors participated in Smart Grid VC funding rounds this quarter with Smart Charging companies raising the most.
One million dollars was raised in one debt financing deal in Q1 2019, compared to $6m raised in one deal in Q4 2018. In a YoY comparison, $1.25bn was raised in two debt financing deals in Q1 2018.
Nine M&A transactions were announced in Q1 2019, of which one disclosed the transaction amount, compared to three undisclosed transactions in Q4 2018. In a YoY comparison, there was one undisclosed M&A transaction in Q1 2018.
Total corporate funding in Energy Efficiency came to $155m in two deals compared to $1.3bn in eight deals in Q4 2018. In a YoY comparison, $104m was raised in five deals in Q1 2018.
VC funding raised by Energy Efficiency companies in Q1 2019 was $100m in one deal compared to $1.2bn in seven deals in Q4 2018. The prior quarter total was skewed due to View’s $1.1bn deal. In a YoY comparison, $98m was raised in four deals in Q1 2018.
Five investors participated in VC funding this quarter. Debt and public market financing for Efficiency companies fell to $55m in one deal this quarter compared to $65m in one deal in Q4 2018. In Q1 2018, there was also one deal for $6m.
In Q1 2019, there was one M&A transaction (disclosed) while in Q4 2018, there were four M&A transactions (one disclosed). In Q1 2018, there was one undisclosed M&A transaction in the Energy Efficiency sector.