SOURCE: Mercom Capital Group

Mercom Capital Group

January 20, 2016 13:00 ET

Smart Grid, Battery/Storage and Efficiency Companies Raise $1.7 Billion in 2015

Smart Grid Funding up With $425 Million; Battery/Storage Raised $397 Million; Energy Efficiency Increases to $852 Million

AUSTIN, TX--(Marketwired - Jan 20, 2016) -  Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and mergers and acquisitions (M&A) activity for the Smart Grid, Battery/Storage and Energy Efficiency sectors for 2015.

Smart Grid
Venture capital (VC) funding (including private equity and corporate venture capital) for Smart Grid companies increased to $425M (million) in 57 deals, compared to $384 million in 74 deals in 2014. Total corporate funding, including debt and public market financing, equaled $527M.

Chart: Smart Grid VC Funding 2011-2015

The Top VC funded company in 2015 was SIGFOX, bringing in $115M.

Chart: Smart Grid - Top 5 VC Funded Companies in 2015

There were 103 VC investors in the Smart Grid category in 2015. Top VC investors this year included GE Ventures, Bpi France, E.ON, EnerTech Capital, Idinvest Partners, Khosla Ventures and Maryland Venture Fund.

Smart Grid Communications companies, including Home and Building Automation technology companies, attracted the largest share of VC funding with $183M in 16 deals, followed by Data Analytics companies with $63 million in 11 deals.

The only IPO this year was the $98M raised by Alarm.com.

There were 20 Smart Grid M&A transactions (10 disclosed) for $5.3B (billion). The top disclosed transaction was Honeywell's $5.1B acquisition of the Elster Division of Melrose Industries.

Battery/Storage
Battery / Storage companies brought in $397M in 37 deals compared to $431M in 34 deals in 2014. Total corporate funding, including debt and public market financing, came to $676M. Flow Battery companies received the most funding with $120M.

The top VC funded company was VionX Energy which raised $58.1M.

Chart: Battery/Storage - Top 5 VC Funded Companies in 2015

A total of 57 VC investors participated in Battery/Storage deals in 2015. Three investors were involved in two deals each including AltEnergy, DBL Partners and Pangaea Ventures.

Bloom Energy raised $130M via convertible debt. FuelCell Energy announced a project finance fund of $30M.

There were 11 M&A transactions in Battery/Storage (four disclosed) totaling $2.4B. The largest transaction was the $2.2B acquisition of Polypore International's energy storage business by Asahi Kasei.

Efficiency
VC funding for the Energy Efficiency sector increased to $852M in 67 deals compared to $797M in 80 deals in 2014. Total corporate funding, including debt and public market financing, increased to over $2B.

The top VC funded company was View (formerly Soladigm) which raised $150M.

Chart: Energy Efficiency - Top 5 VC Funded Companies in 2015

Lighting technology companies captured the most funding with $187M in 23 deals. A total of 123 investors participated in funding deals.

There were five securitization deals this year in the sector for $801M.

Two IPOs raised a combined $168M. There was almost a two-fold increase in M&A activity in the efficiency sector this year with 45 transactions, 22 of which disclosed amounts.

The largest disclosed transaction was the $2.8B acquisition of an 80.1 percent interest in Lumileds by GO Scale Capital Investment Consortium.

Lighting companies were the most active this year with 19 transactions

To get a copy of the report, visit: http://bit.ly/MercomSGQ42015

About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and research firm focused on cleantech. Mercom advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com.