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Battery storage, energy efficiency companies raise $252 mn in VC funding

The total corporate funding in battery storage came to $244 million in nine deals

Battery storage, energy efficiency companies raise $252 mn in VC funding

Battery storage, smart grid, and energy efficiency companies have raised $252 million in Venture Capital (VC) funding in Q1/2020, a 20% increase from the $210 million raised in Q1/2019.

Battery storage companies have raised $164 million; smart grid companies raised $81 million and energy efficiency companies raised $7 million.

Mercom Capital Group has released funding and mergers & acquisitions (M&A) activity for the battery storage, smart grid, and energy efficiency sectors.

The total corporate funding (including VC, Debt, and Public Market Financing) in battery storage came to $244 million in nine deals compared to $635 million in 10 deals in Q4/2019. The funding grew 88% YoY compared to $130 million in nine deals in Q1/2019.

The VC funding including private equity and corporate venture capital raised by battery storage companies was recorded to $164 million in Q1/2020 in six deals compared to $78 million in seven deals in Q1/2019.

The top VC funded battery storage companies were Demand Power Group, which raised $71 million from Star America, Highview Power raised $46 million from Sumitomo Heavy Industries, among others.

One battery storage project fund of $140 million was also announced in Q1/2020. There were four M&A transactions involving Battery Storage companies in Q1/2020.

Blackstone Energy Partners acquired NRStor C&I, a subsidiary of NRStor, a developer of battery storage solutions.

The total corporate funding in smart grid was recorded at $86 million in nine deals as compared to $32 million in 16 deals in Q1/2019.

VC Funding for smart grid companies increased in Q1/2020 with $81 million in seven deals. The top VC funded smart grid companies included, Smart Wires, which secured $43 million; GridBeyond raised $14 million from Energias De Portugal, Act Venture Capital, Electricity Supply Board, and Total Carbon Neutrality Ventures; Driivz raised $11 million from Gilbarco Veeder-Root and Centrica Innovations, among others.

Five M&A transactions were announced in Q1/2020 as compared to six transactions in Q4/2019. EDF acquired a majority stake in Pod Point, an electric vehicle charge point provider.

Apart from this, the total corporate funding in energy efficiency came to $7 million in three deals as against $345 million in two deals in Q4/2019.