In Q1 2022, $1.6 billion was raised in VC funding by Battery Storage, Smart Grid, and Energy Efficiency companies, a 21% increase compared to the $1.3 billion raised in Q1 2021.
To get a copy of the report, visit: https://mercomcapital.com/product/q1-2022-funding-and-ma-report-for-storage-grid-efficiency
Battery Storage
Total corporate funding (including VC, Debt, and Public Market Financing) in Battery Energy Storage came to $12.9 billion in 26 deals compared to $4 billion in 27 deals in Q4 2021. Funding was up significantly year-over-year (YoY) compared to $4.7 billion in 18 deals in Q1 2021.
Venture capital (VC) funding (including private equity and corporate venture capital) raised by Battery Storage companies in Q1 2022 came to $1.1 billion in 21 deals a 15% increase compared to $1 billion in 14 deals in Q1 2021. Quarter-over-quarter (QoQ) funding was 28% lower compared to $1.6 billion in 21 deals in Q4 2021.
The top five VC funded Battery Storage companies this quarter were: Hydrostor, which raised $250 million from Goldman Sachs Asset Management; Sunfire raised $215 million from Copenhagen Infrastructure Energy Transition Fund I and Blue Earth Capital; Factorial Energy raised $200 million from Mercedes-Benz (DAI) and Stellantis; Viridi Parente raised $95 million from Thomas Golisano, Ashtead Group/Sunbelt Rentals, and National Grid Partners; and Our Next Energy (ONE) raised $65 million from BMW i Ventures, Coatue Management, Breakthrough Energy Ventures, Assembly Ventures, Flex, and Volta Energy Technologies.
Seventy-six VC investors participated in Battery Storage funding this quarter.
In Q1 2022, announced debt and public market financing for Battery Storage technologies were higher, with $11.7 billion in five deals compared to $2.4 billion in six deals in Q4 2021 and $3.7 billion in four deals in Q1 2021.
There were five M&A transactions involving Battery Storage companies in Q1 2022. In Q4 2021, there were nine M&A transactions. YoY, there were four Battery Storage M&A transactions in Q1 2021.
There were 13 Battery Storage project M&A transactions in Q1 2022.
Smart Grid
Total corporate funding in Smart Grid was 7% higher, with $316 million in 14 deals compared to $295 million in 11 deals in Q1 2021.
VC funding for Smart Grid companies increased 9% in Q1 2022 with $312 million in 12 deals compared to $287 million in 10 deals in Q1 2021.
The top five VC funded Smart Grid companies included: Tibber, which secured $100 million from Summa Equity; SPAN raised $90 million from Fifth Wall Climate Tech, Wellington Management, Angeleno Group, FootPrintCoalition, Obsidian Investment Partners, A/O PropTech; Utilidata raised $27 million from Moore Strategic Ventures, Microsoft Climate Innovation Fund, NVIDIA, Keyframe Capital, Braemar Energy Ventures, MUUS Asset Management; David Energy raised $21 million from Keyframe Capital, Union Square Ventures, Equal Ventures, Box Group, MCJ Collective, Toba Capital, Turntide, James Dice; and JET Charge raised $18 million from RACV, Clean Energy Innovation Fund, Claremont Capital, Greg Roebuck, Simon Monk.
Thirty-nine investors participated in Smart Grid VC funding rounds this quarter.
Four million dollars was raised in two debt and public market financing deals in Q1 2022. There was one $484 million public market financing deal in Q4 2021. Year-over-year, $8 million was raised in one public market financing deal in Q1 2021.
In Q1 2022, there were three M&A transactions compared to two in Q4 2021 and six transactions in Q1 2021.
Efficiency
Total corporate funding in Energy Efficiency came to $109 million in four deals compared to $118 million in the same number of deals in Q4 2021. In a YoY comparison, $5 million was raised in one deal in Q1 2021.
VC funding raised by Energy Efficiency companies in Q1 2022 came to $109 million in four deals compared to $118 million in four deals in Q4 2021. In a YoY comparison, $5 million was raised in one deal in Q1 2021.
Thirteen investors participated in VC funding this quarter.
There were no Efficiency M&A transactions in Q1 2022. There was one M&A transaction in Q4 2021. In Q1 2021, there was one M&A transaction for $300 million.
To get a copy of the report, visit: https://mercomcapital.com/product/q1-2022-funding-and-ma-report-for-storage-grid-efficiency
Correction April 18, 2022: The following percentage was corrected – Total corporate funding in Smart Grid was 7% higher, with $316 million in 14 deals compared to $295 million in 11 deals in Q1 2021.
