Pace of funding largely unchanged for last five
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 sector during the first quarter of 2013.
grid venture capital (VC) funding in Q1 2013, totaled $62 million in nine
deals. The quarter’s funding was nearly identical to the first quarter of 2012,
when the same amount was raised by smart grid companies but in 10 deals instead
of nine. With the lone exception of home security and automation company, Alarm.com’s
$136 million raise in Q3 2012, the pace of funding has remained largely
unchanged for the past five quarters.
peaking in Q2 2010, VC investments in smart grid have slowed down considerably,
and continue to amble along with no clear direction,” commented Raj Prabhu, CEO
of Mercom Capital Group. “Silver Spring Networks’ long awaited IPO was the lone
highlight in an otherwise slow quarter.”
Top 5 VC deals in Q1 2013 raised a combined $52 million. The top two VC deals
each raised $15 million. Cylance, a provider of cyber security products for the
infrastructure industry, raised $15 million from Khosla Ventures and Fairhaven
Capital in a Series A round, and Sentient Energy, a developer of advanced grid
monitoring solutions that consist of modular intelligent monitoring devices and
software applications, raised $15 million in an undisclosed round from
Foundation Capital. That was followed by the $11.3 million raise by Utility
Funding from Foresight Group; $5.8 million raised by Xtreme Power by a group of
investors including SAIL Capital Partners, Bessemer Venture Partners, Dow
Chemical, Fluor, Dominion Power, Spring Ventures, BP, and Posco; and $4.8
million raised by Smarter Grid Solutions from Scottish Equity Partners,
Scottish Investment Bank and the University of Strathclyde.
were only four M&A transactions in Q1 2013. One of the transactions; Toshiba
Corporation’s acquisition of privately-held energy management company Consert,
was disclosed for a total of $11 million. Last quarter, $22 million in M&A
activity was disclosed in the same number of transactions.
a rather slow quarter, the smart grid sector saw a rare IPO. Silver Spring
Networks, a provider of smart grid products and services to utilities, raised
$81 million by offering 4.75 million shares at $17.
learn more about the report, visit: Smart Grid Q1 2013 Funding and M&A Report
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