Click here to download our 9M and Q3 2020 Funding and M&A Executive Summary on Battery Storage, Smart Grid, and Efficiency.

Mercom found that in the third quarter (Q3) of 2020, $1.1 billion was raised by Battery Storage, Smart Grid, and Efficiency companies compared to $605 million in Q2 2020.

Battery Storage

VC funding for Battery Storage companies in Q3 2020 was up 78%, with $661 million in seven deals compared to $372 million in eight deals in Q2 2020. The increase in funding was largely due to Northvolt’s $600 million equity raise. In 9M 2020, funding was 25% lower with $1.2 billion in 21 deals compared to $1.6 billion in 25 deals in 9M 2019.

VC Funding in Q3 2020 was spread across five categories: Lithium-based Batteries, Sodium-based Batteries, Metal-Hydrogen Batteries, Energy Storage Systems, and Thermal Energy Storage.

A total of 28 VC investors participated in Battery Storage funding in Q3 2020.

There were three M&A transactions involving Battery Storage companies in Q3 2020 compared to four transactions in Q2 2020. In a YoY comparison, there were four transactions in Q3 2019. In the first nine months of 2020, there were 11 transactions compared to 10 transactions in 9M 2019.

Smart Grid

Smart Grid VC funding in Q3 2020 was $368 million in 11 deals compared to $194 million in 14 deals in Q2 2020. In a YoY comparison, funding in Q3 2019 was $39 million in six deals. $643 million was raised in 32 deals in 9M 2020, 231% higher compared to $194 million raised in 28 deals in 9M 2019.

VC Funding in Q3 2020 was spread across four Smart Grid technologies: Smart Charging, Distributed Generation and Integration, Smart Grid (SG) Communications, and Data Analytics.

A total of 26 VC investors participated in Smart Grid funding in Q3 2020.

There were 12 Smart Grid M&A transactions in Q3 2020 compared to one transaction in Q2 2020. In a YoY comparison, there were five transactions in Q3 2019. In the first nine months of 2020, there were 18 transactions compared to 23 transactions in 9M 2019.

Efficiency

VC funding for Energy Efficiency technology companies increased in Q3 2020, with $48 million raised in four deals compared to $40 million raised in four deals in Q2 2020. In a YoY comparison, funding in Q3 2019 was $61 million in three deals. $95 million was raised in 11 deals in 9M 2020, 65% lower compared to $268 million raised in eight deals in 9M 2019.

VC Funding in Q3 2020 was spread across three sub-technologies: Energy Monitors/Dashboards, Data Center, and Efficient Home/Building.

A total of 15 VC investors participated in Energy Efficiency funding in Q3 2020.

There were three M&A transactions involving Energy Efficiency companies in Q3 2020. There were no M&A transactions in Q2 2020. In Q3 2019, there was one M&A transaction. In the first nine months of 2020, there were four transactions compared to nine transactions in 9M 2019.

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 QoQ information on market activity displayed in easy-to-digest charts, graphs and tables, as well as data-driven analysis covering:

• VC and M&A trends and charts for 9M 2020
• 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 156 companies and investors covered in this report. The report is 110 pages in length and contains 104 charts, graphs and tables.