SOURCE: Mercom Capital Group

Mercom Capital Group

July 20, 2016 10:00 ET

Smart Grid, Battery/Storage and Efficiency Companies Bring in $433 Million in Venture Capital in Q2 2016

Smart Grid Companies Receive $222 Million; Battery/Storage Companies Receive $125 Million; Energy Efficiency Companies Raise $86 Million

AUSTIN, TX--(Marketwired - Jul 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 in Q2 2016.

Smart Grid
Venture capital (VC) funding (including private equity and corporate venture capital) for Smart Grid companies doubled with $222 million(M) in 15 deals compared to $110M in 14 deals in Q1 2016. Year-over-year (YoY) funding also doubled compared to Q2 2015 when $104M was raised in 18 deals.

Image: Smart Grid VC Funding Q2-2016

Top VC funded companies were Vivint Smart Home with $100M, ChargePoint with $50M, AutoGrid Systems with $20M, Origami Energy with $19.5M, and lastly Comfy secured $12M.

Image: Smart Grid Top 5 VC Funded Companies Q2-2016

Forty-six VC investors participated in Smart Grid deals in Q2 2016. Smart Grid Communication technologies, including Home Automation, raised $123M.

There were three M&A transactions in Q2 2016 compared to two transactions in Q1 2016.

Battery/Storage
VC funding for Battery and Storage companies doubled with $125M in 10 deals in Q2 2016, compared to $54M in 10 deals in Q1 2016. Year-over-year funding in Q2-2016 was in line with Q2-2015, which had $126M in 13 deals.

Top 5 Battery/Storage VC funding deals were Nexeon with $43.3M, Aquion Energy with $33M, Stem with $15M, and Greenvision Technologies (Relicell) with $8M and Silatronix with $8M.

Image: Battery/Storage Top 5 VC Funded Companies Q2-2016

Twenty investors participated in Battery and Storage funding in Q2 2016. Lithium-ion Battery companies raised $51.3M in three deals.

Announced debt and public market financing for Battery/Storage technologies came to $65M in two deals in Q2-2016, compared to $28.5M in two deals in Q1-2016.

There were four M&A transactions (two disclosed) for Battery/Storage companies in Q2 2016. The largest M&A deal in Q2 2016 was the $1.1 billion(B) acquisition of Saft by Total. Another notable deal included the acquisition of an 80 percent stake in Green Charge Networks by ENGIE.

Efficiency
Energy Efficiency technology companies raised $86M in VC funding in nine deals compared to $211M in 14 deals in Q1 2016 and $211M in 18 deals in Q2 2015.

The top VC funded company in Q2 2016 was Thermondo with $25.6M in funding, followed by tado° with $23M, Electric Imp with $21M, and Kyulux with $13.5M.

Eighteen investors participated in VC deals in Q2 2016.

Image: Energy Efficiency Top VC Funded Companies Q2-2016

Announced debt and public market financing in the Efficiency category peaked in Q2 2016 with $1.75B in seven deals.

There was one initial public offering (IPO) in the Efficiency category by Philips Lighting for $959M.

In Q2 PACE Financing totaled $762M including $512M in PACE Securitization deals from three transactions. Renovate America had the top deal with $305.3M raised in its seventh securitization of PACE bonds. To date, PACE financing companies have raised more than $2B.

There were seven M&A transactions in the Efficiency sector in Q2 2016, including the $532M acquisition of Opower by Oracle.

To get a copy of the report, visit: http://bit.ly/MercomSGQ22016

About Mercom Capital Group
Mercom Capital Group is a global communications and research firm focused on the cleantech sector. Mercom advises companies on new market entry, custom market intelligence and strategic decision-making. Visit: www.mercomcapital.com. To get our market intelligence reports, visit: www.mercomcapital.com/market_intelligence.php