The venture capital (VC) funding for battery storage, smart grid, and energy efficiency companies in Q1 2021 saw a growth of 410% and stood at $1.3 billion, compared to $252 million in Q1 2020, according to Mercom Capital Group’s latest report Q1 2021 Funding and M&A Report for Storage, Grid, and Efficiency.
Total corporate funding (including VC, debt, and public market financing) for battery storage companies in Q1 2021 stood at $4.7 billion in 17 deals against $3.1 billion in 19 deals in Q4 2020. The figures were up significantly compared to $244 million in nine deals in Q1 2020.
VC funding, which included private equity and corporate venture capital raised by battery storage companies, came to $994 million in 13 deals compared to $164 million in six deals in Q1 2020.
The report stated that 33 VC investors participated in battery storage funding in Q1 2021.
The top VC-funded battery storage companies this quarter were: Sila Nanotechnologies which raised $590 million; Forsee Power ($127 million); Powin Energy ($100 million); Enevate($81 million); and Malta ($50 million).
In Q1 2021, the announced debt and public market financing for battery storage technologies were much higher, with $3.7 billion in four deals against $2.7 billion in eight deals in Q4 2020.
There were four merger and acquisition (M&A) transactions in Q1 2021, compared to eight M&A transactions in Q4 2020. There were nine battery storage project M&A transactions in Q1 2021, out of which only one disclosed the amount.
The total corporate funding in the smart grid was higher by 243% and stood at $295 million in 11 deals against $86 million in nine deals in Q1 2020. The VC funding for smart grid companies increased by 254% in Q1 2021 with $287 million compared to $81 million in Q1 2020.
The report said that 28 investors participated in the smart grid VC funding rounds this quarter.
The top five VC-funded smart grid companies included: Volta Charging, which raised $125 million; FreeWire Technologies, which secured $50 million; Wallbox $40 million; David Energy $19 million; and WiTricity $18 million.
The report said that $8 million was raised in one public market financing deal in Q1 2021. There were no debt and public market financing deals in Q4 2020. In Q1 2021, there were six M&A transactions compared to three in Q4 2020 and five transactions in Q1 2020.
The total corporate funding in energy efficiency in Q1 2021 stood at $5 million in one deal compared to $196 million in five deals in Q4 2020. Energy efficiency companies raised $5 million in VC funding in Q1 2021 in one deal against $196 million in five deals in Q4 2020. There were no M&A transactions in this segment in Q1 2021. In Q1 2020, there was one M&A transaction worth $1.4 billion.
The total corporate funding for the battery storage, smart grid, and energy efficiency sectors in 2020 was up 112% at $8.1 billion in 2020 from $3.8 billion in 2019.