Total corporate funding (including venture capital funding, public market, and debt financing) for Battery Storage, Smart Grid, and Efficiency companies in 1H 2019 was flat with $2.3 billion compared to $2.4 billion raised in 1H 2018, a four percent decrease year-over-year (YoY). The decline in funding in 1H 2019 was due to lower funding activity in Smart Grid companies, while funding increased in the Battery Storage and Efficiency sectors.
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Global VC funding (venture capital, private equity, and corporate venture capital) for Battery Storage, Smart Grid, and Efficiency companies in 1H 2019 was 102% higher with $1.7 billion compared to over $843 million in 1H 2018.
In Q2 2019, VC funding for the Battery Storage, Smart Grid, and Efficiency companies jumped to $1.5 billion in 20 deals compared to $210 million in 23 deals in Q1 2019. Funding amounts were 304% higher YoY compared to the $371 million raised in 28 deals in Q2 2018. The increase in funding activity was largely due to a billion-dollar deal in the Battery Storage sector.
Battery Storage
VC funding in Battery Storage companies in 1H 2019 was up by 139% with $1.4 billion in 17 deals compared to the $543 million in 30 deals in 1H 2018. The increase was due to Northvolt’s $1 billion funding round.
The Top 5 VC funding deals in 1H 2019 were the following: Northvolt raised $1 billion, Sila Nanotechnologies raised $170 million, Romeo Power secured $88.6 million, Zenobe Energy secured $32.3 million, and LivGuard Energy Technologies raised ~$32 million. A total of 41 VC investors participated in Battery Storage funding in 1H 2019.
Announced debt and public market financing activity in the first half of 2019 ($547 million in five deals) was 275% higher compared to the first half of 2018 when $146 million was raised in six deals.
There were four announced Battery Storage project funding deals in 1H 2019 bringing in a combined $499 million compared to $34 million in four deals in 1H 2018.
In 1H 2019 there were a total of six (one disclosed) Battery Storage M&A transactions, compared to eight transactions (two disclosed) in 1H 2018. There were two undisclosed Battery Storage M&A transactions in Q2 2019. By comparison, there were four (one disclosed) Battery Storage M&A transactions in Q1 2019 and Q2 2018 apiece.
In the first half of 2019, there were four project M&A transactions (one disclosed) compared to two undisclosed transactions in 1H 2018. There were three project M&A transactions (one disclosed) involving Battery Storage companies in Q2 2019. In Q1 2019, there was one undisclosed M&A transaction. In a YoY comparison, there were two transactions (both undisclosed) in Q2 2019.
Smart Grid
VC funding in Smart Grid companies in 1H 2019 was 11% lower with $120 million compared to the $135 million raised in 1H 2018.
In Q2 2019, VC funding for Smart Grid companies more than doubled to $88 million in six deals compared to $32 million in 15 deals in Q1 2019. Funding amounts were 47% higher YoY compared to $60 million raised in four deals in Q2 2018.
The Top 5 VC funding deals in 1H 2019 were: SmartRent raised $32 million, CleanSpark raised $20 million, Innowatts received $18.2 million, Wirepas raised $16.2 million, and Driivz raised $12 million. A total of 48 VC investors participated in Smart Grid funding in 1H 2019.
Announced debt and public market financing for Smart Grid companies came to $1 million in one deal in 1H 2019 compared to $1.3 billion in two deals in 1H 2018.
In 1H 2019, there were a total of 17 Smart Grid M&A transactions (one disclosed), compared to five transactions (all undisclosed) in 1H 2018. There were eight Smart Grid M&A transactions (all undisclosed) in Q2 2019. By comparison, there were nine Smart Grid M&A transactions (one disclosed) in Q1 2019 and four transactions (all undisclosed) in Q2 2018.
Efficiency
VC funding for Energy Efficiency companies in 1H 2019 was 25% higher with $207 million compared to the $165 million raised in 1H 2018.
In Q2 2019, VC funding for Efficiency companies increased with $107 million in four deals compared to $100 million in one deal in Q1 2019. Funding amounts were 60% higher YoY compared to $67 million raised in six deals in Q2 2018.
The Top 5 VC funding deals in 1H 2019 were as follows: Kinestral Technologies raised $100 million, Budderfly raised $55 million, Carbon Lighthouse secured $32.6 million, and METRON received $11.3 million. A total of 18 VC investors participated in Energy Efficiency funding in 1H 2019.
Announced debt and public market financing activity in the first half of 2019 ($56 million in two deals) was 74% lower compared to 1H 2018 when $212 million was raised in two deals.
Property Accessed Clean Energy (PACE) financing deals in 1H 2019 came to $394 million in two deals compared to $694 million in three deals in 1H 2018.
In 1H 2019 there were a total of eight Efficiency M&A transactions (two disclosed), compared to three transactions (all undisclosed) in 1H 2018. There were seven Efficiency M&A transactions (one disclosed) in Q2 2019. By comparison, there was one disclosed Efficiency M&A transaction in Q1 2019 and two undisclosed M&A transactions in Q2 2018.
There were eight acquisitions made by utilities and oil and gas companies in 1H 2019.
To get a copy of the report, visit: https://mercomcapital.com/product/q2-2019-funding-and-ma-report-for-storage-grid-efficiency
Image credit: Fluence
