SOURCE: Mercom Capital Group

Mercom Capital Group

October 20, 2015 10:00 ET

Venture Capital Funding for Smart Grid, Storage and Efficiency Companies Comes to $493 Million in Q3 2015

Smart Grid Companies Get $81 Million; Battery/Storage Companies Get $96 Million; Energy Efficiency Companies Raise $316 Million

AUSTIN, TX--(Marketwired - Oct 20, 2015) - Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its Q3 2015 funding and mergers and acquisitions (M&A) report for the Smart Grid, Battery/Storage and Energy Efficiency sectors.

Chart: Smart Grid VC Funding Q3 2014-Q3 2015

Smart Grid
Venture capital (VC) funding (including private equity and corporate venture capital) for Smart Grid companies came to $81M (million) in 12 deals in Q3 2015, compared to $104M in 18 deals in Q2 2015. Year-to-date (YTD), Smart Grid companies have raised $370M compared to $325M raised in the same period in 2014.

Chart: Smart Grid - Top 5 VC funded Companies in Q3 2015

The Top VC funded Smart Grid company in Q3 was PubNub, raising $20M. Other top deals were SemaConnect with $15M, LifeSmart with $9.4M, Bastille with $9M and Link Labs with $5.7M

Twenty-two investors participated in smart grid VC funding rounds in Q3. Within Smart Grid, Smart Grid Communication companies raised the most funding followed by PHEV and V2G.

In one of the largest Smart Grid M&A transactions to date and the only one this quarter, Honeywell acquired the Elster Division of Melrose Industries for $5.1B (billion).

Battery/Storage
Battery and Storage companies received $96M in VC funding in nine deals, compared to $126M in 13 deals in Q2 2015. Battery/Storage companies have received $290M YTD in 2015 compared to $383M raised during the same time in 2014.

The top Battery/Storage deals included Stem with $33M, Primus Power with $25M, Greensmith Energy Management Systems with $12.3M, Advanced MicroGrid Solutions with $10M and SolidEnergy with $6.6M.

Chart: Battery/Storage - Top 5 VC Funded Companies in Q3 2015

Thirteen investors participated in VC funding rounds this quarter.

There were four debt and public market financing deals in the Battery/Storage category this quarter totaling $48M.

There were three M&A transactions in Battery/Storage; the only disclosed deal was from Leclanche which acquired the design and IP rights for modules and battery management system software from ADS-TEC for $2.2M.

Efficiency
Energy Efficiency companies raised $316M in VC funding in 17 deals this quarter compared to $211M in 18 deals last quarter. Energy Efficiency companies have brought in $667M YTD in 2015, compared to $604M in the same period last year.

The Top 5 Efficiency deals included View (formerly Soladigm) with $150M, Clean Fund with $60M, Sensity Systems with $36M, Kaistar Lighting (Xiamen) with $28M and Optimum Energy with $10.1M.

Thirty-one investors participated in VC funding this quarter. Efficient Home/Building technology companies raised the most funding while Lighting companies had the highest number of deals.

Chart: Energy Efficiency - Top 5 VC Funded Companies in Q3 2015

There were four debt and public market financing deals in the Efficiency category for $410M this quarter. The largest deal was the $159.7M raised by Renovate America through its fourth securitization of PACE bonds.

Three securitization deals were completed this quarter totaling $360M.

There were 14 M&A transactions this quarter in the Efficiency category.

For a copy of the report, visit: http://bit.ly/MercomSGQ32015

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.