Total corporate funding (including venture capital funding, public market, and debt financing) for the Battery Storage, Smart Grid, and Energy Efficiency sectors in 2020 was up by 112%, with $8.1 billion compared to $3.8 billion in 2019.
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Global VC funding (venture capital, private equity, and corporate venture capital) for Battery Storage, Smart Grid, and Efficiency companies in 2020 was 12% higher with $2.6 billion compared to $2.3 billion raised in 2019.
Battery Storage
Total corporate funding in the battery storage sector was up 136% with $6.6 billion in 54 deals in 2020. However, VC funding for Battery Storage companies totaled $1.5 billion in 32 deals compared to $1.7 billion raised in 32 deals in 2019.
Lithium-ion based battery technology companies received the most VC funding in 2020, with $649 million. Other categories that received funding included Solid-state batteries, Energy storage downstream, Energy storage systems, and Flow batteries.
The top VC funded companies in 2020 were: Northvolt with $600 million; QuantumScape with $200 million; Zenobe Energy with $198 million; ProLogium Technology with $100 million; and Form Energy with $76 million.
105 VC investors participated in Battery Storage deals in 2020 compared to 78 in 2019. Breakthrough Energy Ventures was the top investor in 2020. Utilities and oil and gas companies were involved in four battery storage funding deals in 2020.
In 2020, announced debt and public market financing for Battery Storage companies was up significantly with $5 billion in 22 deals compared to $1.1 billion in 10 deals in 2019. This is the highest amount raised in public market financing since 2014. Northvolt’s $1.6 billion and Plug Power’s $1 billion loan were the largest public market financing deals in 2020.
There were 19 M&A transactions in the Battery Storage category in 2020, of which two disclosed transaction amounts.
Three battery storage companies – Quantaumscape, Romeo Power, and Stem – announced reverse mergers through Special Purpose Acquisition vehicles in 2020.
A total of 24 battery storage and solar plus storage M&A transactions were announced in 2020 compared to 11 in 2019.
Smart Grid
Smart Grid companies raised $748 million in VC funding in 38 deals in 2020, a 149% increase compared to the $300 million raised in 38 deals in 2019. Total corporate funding, including debt and public market financing, came to $758 million in 41 deals compared to $372 million in 41 deals in 2019.
The top VC funded companies in 2020 were: ChargePoint, which brought in $127 million; Star Charge, which received $125 million; Tibber, which secured $65 million; SmartRent with $60 million; and Probus Smart Things with $53 million.
A total of 102 investors funded Smart Grid companies in 2020, compared to 78 in 2019. The top VC investors in 2020 were Congruent Ventures, Energy Impact Partners, National Grid Partners, and Silicon Valley Bank.
Smart Charging companies had the largest share of VC funding in 2020 with $324 million in 13 deals, followed by Smart Grid Communications companies with $119 million in six deals, and Demand Response companies with $104 million in three deals.
In 2020, there were 21 M&A transactions (four disclosed) recorded in the Smart Grid sector compared to 29 in 2019.
Efficiency
VC funding for Energy Efficiency companies came to $291 million in 16 deals in 2020 compared to $298 million in nine deals in 2019. Total corporate funding, including debt and public market financing, reached $791 million in 2020 compared to $670 million in 2019.
The top VC funded companies in 2020 were: Redaptive, which raised $157 million; followed by Palmetto with $29 million; Juganu with $18 million; Infogrid with $16 million; and Eta Compute with $13 million.
A total of 52 investors participated in funding deals in 2019 compared to 38 investors in 2019. Evergy Ventures was the most active investor in 2020.
In 2020, debt and public market financing announced by Energy Efficiency companies rose to $500 million in one deal compared to $371 million in three deals in 2019.
M&A activity for Efficiency companies in 2020 decreased with four transactions, two of which disclosed the transaction amount. In 2019, there were nine M&A transactions with two that disclosed the transaction amount.
To get a copy of the report, visit: https://mercomcapital.com/product/2020-q4-annual-funding-ma-report-storage-grid-efficiency
