Click here to download our 2019 Q4 and Annual Funding and M&A Executive Summary on Battery Storage, Smart Grid, and Efficiency.

Mercom found that in 2019, a combined $2.3 billion was raised by Battery Storage, Smart Grid, and Energy Efficiency companies, an 18% decrease from the $2.8 billion raised in 2018.

Battery Storage

In 2019, VC funding into Battery Storage companies increased by 103% to $1.7 billion in 32 deals compared to $850 million raised in 49 deals in 2018. Total corporate funding, including debt and public market financing, increased to $2.8 billion in 2019 compared to $1.3 billion in 2018.

Lithium-ion based battery technology companies received the most funding in 2019 with $1.4 billion. Other categories that received funding included Gravity storage, Flow batteries, CAES, Energy storage downstream, Fuel cells, Liquid metal batteries, Thermal energy storage, Solid-state batteries, Sodium-based batteries, and Zinc-air batteries.

There were 10 M&A transactions in the Battery Storage category in 2019, of which only two disclosed transaction amounts. In 2018, there were 16 M&A transactions, three of which disclosed transaction amounts.

Smart Grid

Smart Grid companies raised $300 million in VC funding in 38 deals in 2019, a 43% decrease compared to the $530 million raised in 29 deals in 2018. Total corporate funding, including debt and public market financing, came to $372 million in 41 deals, compared to $1.8 billion in 33 deals in 2018.

Grid Optimization companies had the largest share of VC funding in 2019 with $85 million in four deals, followed by Data Analytics companies with $58 million in six deals and Smart Grid Communications companies with $52 million in five deals.

In 2019, there were 29 M&A transactions (one disclosed) recorded in the Smart Grid sector. In 2018, there were 12 undisclosed transactions.

Efficiency

VC funding for Energy Efficiency companies fell sharply with $298 million in nine deals in 2019 compared to $1.5 billion in 23 deals in 2018, an 80% decrease. Total corporate funding, including debt and public market financing, reached more than $670 million in 2019 compared to $1.7 billion in 2018.

M&A activity for Efficiency companies in 2019 increased with nine transactions, two of which disclosed the transaction amount. In 2018, there were seven M&A transactions with one that disclosed the transaction amount.

Mercom Capital Group’s Battery Storage, Smart Grid, and Efficiency Funding and M&A Reports are comprehensive high-quality reports delivering superior insight, market trends and analysis. These reports help bring clarity to professionals in the current financial landscape of the smart grid industry.

The Quarterly Funding and M&A Reports contain quarter-over-quarter (QoQ) information on market activity displayed in easy-to-digest charts, graphs and tables, as well as data-driven analysis covering:

• Venture capital funding deals including top investors, QoQ trends, and a breakdown of charts and graphs by stage;
• VC funding by technology;
• Debt and other funding deals;
• Mergers and Acquisitions (M&A) including QoQ trends, with charts and graphs by technologies;
• Battery and storage funding deals;
• Smart Grid funding deals;
• Energy Efficiency funding deals;
• New cleantech funds;

This report also contains comprehensive lists of all announced deals and transactions during the quarter, including:

• VC deals and investors;
• M&A transactions and acquirers;
• New cleantech funds.

There were 85 companies and investors covered in this report. The report is 131 pages in length and contains 126 charts, graphs and tables.