Corporate Funding into Battery Storage, Smart Grid, and Efficiency Companies Increased to $10.4 Billion in 1H 2021

Total corporate funding (including venture capital funding, public market, and debt financing) for Battery Storage, Smart Grid, and Efficiency companies in 1H 2021 was up exponentially year-over-year (YoY) with $10.4 billion compared to $1.5 billion raised in 1H 2020 when the market was affected by COVID-19.

To get a copy of the report, visit: https://mercomcapital.com/product/1h-q2-2021-funding-ma-report-storage-grid-efficiency

 

Battery Storage, Smart Grid, Efficiency Corporate Funding 1H 2020-1H 2021

Global VC funding (venture capital, private equity, and corporate venture capital) for Battery Storage, Smart Grid, and Efficiency companies come in 468% higher in 1H 2021 with $4.9 billion compared to $858 million in 1H 2020. Investments continue to rise as battery storage companies are poised to play a vital role in the transition from fossil fuels to renewables.

In Q2 2021, VC funding for Battery Storage, Smart Grid, and Efficiency companies increased with $3.6 billion in 28 deals compared to $1.3 billion in 24 deals in Q1 2021. Funding amounts were 493% higher YoY compared to the $605 million raised in 26 deals in Q2 2020. The increase in funding activity was primarily due to a multi-billion dollar deal in the Battery Storage sector this quarter.

Battery Storage, Smart Grid, and Efficiency Top VC Funded Deals in 1H 2021

Battery Storage

In 1H 2021, $9.6 billion was raised in corporate funding from 41 deals compared to the $716 million raised in 19 deals in 1H 2020. After the corporate funding cratered in Q1 2020 due to the COVID-19 effect, funding levels have improved every quarter since, as the economy and the financial activity bounced back.

VC funding in Battery Storage companies in 1H 2021 was up significantly with $4.4 billion in 33 deals compared to $536 million in 14 deals in 1H 2020. Northvolt’s $2.75 billion funding round in Q2 2021 was a big part of the funding increase.

The Top 5 VC funding deals in 1H 2021 were: Northvolt, which raised $2.75 billion, Sila Nanotechnologies, which raised $590 million, SES, which secured $139 million, EnergyNest, which secured $132 million, and Solid Power, which raised $130 million. A total of 106 VC investors participated in Battery Storage funding in 1H 2021.

Announced debt and public market financing activity in the first half of 2021 ($5.2 billion in eight deals) spiked compared to the first half of 2020, when $180 million was raised in five deals.

There were five announced Battery Storage project funding deals in 1H 2021, bringing in a combined $781 million compared to $26 million in five deals in 1H 2020.

In 1H 2021 there were a total of nine (two disclosed) Battery Storage M&A transactions compared to eight transactions (all undisclosed) in 1H 2020.

Smart Grid

VC funding in Smart Grid companies in 1H 2021 was 68% higher with $463 million compared to the $275 million raised in 1H 2020.

In Q2 2021, VC funding for Smart Grid companies decreased with $176 million in seven deals compared to $287 million in 10 deals in Q1 2021. Funding amounts were 9% lower YoY compared to $194 million raised in 14 deals in Q2 2020.

The Top 5 VC funding deals in 1H 2021: Volta Charging raised $125 million; Mainspring Energy raised $95 million, FreeWire Technologies received $50 million, Wallbox raised $40 million, and Voltus raised $31 million.

Announced debt and public market financing for Smart Grid companies came to $8 million in one deal in 1H 2021 compared to $10 million in three deals in 1H 2020.

In 1H 2021, there were a total of 11 Smart Grid M&A transactions (all undisclosed) compared to six transactions (all undisclosed) in 1H 2020.

Efficiency

VC funding for Energy Efficiency companies in 1H 2021 was 89% lower with $5 million compared to the $47 million raised in 1H 2020.

One Energy Efficiency company raised an undisclosed amount of VC funding in Q2 2021 compared to $5 million in one deal in Q1 2021. In a YoY comparison, $40 million was raised in four deals in Q2 2020.

Announced debt and public market financing activity in the first half of 2021 ($343 million in one deal) was 31% lower compared to 1H 2020, when $500 million was raised in one deal.

In 1H 2021 there was one Efficiency M&A transaction ($300 million) compared to one transaction ($1.4 billion) in 1H 2020.

To get a copy of the report, visit: https://mercomcapital.com/product/1h-q2-2021-funding-ma-report-storage-grid-efficiency


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