Mercom Capital Group, a global clean energy communications and consulting firm, released its report on funding and mergers & acquisition (M&A) activity for the Energy Storage and Smart Grid sectors for the first quarter (Q1) of 2023.
To get a copy of the report, visit: https://mercomcapital.com/product/q1-2023-funding-ma-report-storage-grid
Energy Storage
Total corporate funding—including venture capital (VC) funding, debt financing, and public market financing—in Energy Storage came to $2.2 billion in 27 deals compared to $4.3 billion in 31 deals in Q4 2022. Funding decreased significantly year-over-year (YoY) compared to $12.9 billion in 27 deals in Q1 2022. LG Energy Solution’s $10.7 billion IPO contributed 83% of Q1 2022 funding and skewed funding totals.
VC funding (including private equity and corporate venture capital) raised by Energy Storage companies in Q1 2023 came to $1.1 billion in 19 deals, an 8% decrease year-over-year (YoY) compared to $1.2 billion in 22 deals in Q1 2022. Quarter-over-quarter (QoQ) funding was 35% lower compared to $1.7 billion in 22 deals in Q4 2022.
The top five VC-funded Battery Storage companies in Q1 2023 were: Electriq Power ($300 million), Our Next Energy ($300 million), WeView ($87 million), NanoGraf ($65 million), and Caban Systems ($51 million).
In Q1 2023, announced debt and public market financing for Energy Storage technologies decreased 58% QoQ, with $1.1 billion in eight deals compared to $2.6 billion in nine deals in Q4 2022.
Announced Energy Storage project funding came in at $2 billion in nine deals in Q1 2023, compared to $749 million raised in seven deals in Q4 2022.
Four M&A transactions were recorded in Energy Storage in Q1 2023. In Q4 2022, there were five M&A transactions. YoY, there were five Energy Storage M&A transactions in Q1 2022.
There were 12 Energy Storage Project M&A transactions in Q1 2023.
Smart Grid
Corporate funding in Smart Grid came to $1.1 billion in 18 deals in Q1 2023, a 42% decrease compared to $1.9 billion in 23 deals in Q4 2022. In a YoY comparison, funding in Q1 2023 increased 230% compared to $331 million in 15 deals in Q1 2022.
There was a 66% decrease QoQ for Smart Grid VC funding in Q1 2023, with $280 million raised in 14 deals compared to $846 million in 15 deals in Q4 2022. In a YoY comparison, funding in Q1 2023 was 14% lower compared to Q1 2022, when $327 million was raised in 13 deals.
The top five VC funded Smart Grid companies in Q1 2023 included: EO Charging ($80 million), CHARGE+ZONE ($54 million), Magenta Mobility ($40 million), ConnectDER ($27 million), and Indra ($21 million).
$777 million was raised in four debt and public market financing deals in Q1 2023. There were eight public market financing deals amounting to $1.1 billion in Q4 2022. In a YoY comparison, $4 million was raised in two public market financing deals in Q1 2022.
In Q1 2023, there were four M&A transactions compared to two transactions in Q4 2022. In a YoY comparison, there were three transactions in Q1 2022.
To get a copy of the report, visit: https://mercomcapital.com/product/q1-2023-funding-ma-report-storage-grid
