Mercom Capital Group Reports Third Quarter 2011 Funding and M&A Activity for Smart Grid

Smart Grid venture capital (VC) funding in Q3 2011 came in at $97 million in 10 deals, compared to $104 million in 15 deals in Q2 2011. Thirty-one different investors participated in these funding rounds.

“Funding activity so far this year in the Smart Grid sector has continued to be weak,” said Raj Prabhu, Managing Partner, Mercom Capital Group. “Current economic conditions and uncertainty along with a lack of clear direction in this sector is plainly evident based on the depressed funding activity so far.”

The top five VC transactions accounted for almost 72 percent of total VC transactions in the quarter and included SynapSense with $16 million, EnergyHub with $14.5 million, Power Assure with $13.5 million, CURRENT with $13 million and Gridco with $12.5 million.

Merger and acquisition (M&A) activity in the Smart Grid sector amounted to $30 million in five deals in Q3 2011 out of which only one was disclosed. The most significant M&A transactions were EnerNOC’s acquisition of Energy Response for $30 million and ABB’s acquisition of Epyon for an undisclosed amount. Last quarter’s blockbuster M&A activity totaling $4.3 billion completely eclipsed this quarter’s activity.

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