Battery storage, smart grid, and energy efficiency companies received $252 million in venture capital (VC) funding in the first quarter (Q1) of 2020, a 20% increase from the $210 million raised in Q1 2019, according to a new report released by Mercom Capital Group.

The global battery storage sector attracted corporate funding (including VC, debt, and public market financing) worth $244 million in nine deals in Q1 2020 compared to $130 million raised from nine deals in Q1 2019, an 88% increase.

VC funding (including private equity and corporate venture capital) raised by battery storage companies in Q1 2020 increased to $164 million from six deals compared to the $78 million raised in seven deals in Q1 2019.

The top VC funded battery storage companies this quarter were: Demand Power Group, which raised $71 million from Star America; Highview Power that raised $46 million from Sumitomo Heavy Industries; Advano raised $19 million from Mitsui Kinzoku SBI Material Innovation Fund, Future Shape, PeopleFund, Thiel Capital, DCVC, Y Combinator; ZincFive raised $13 million from 40 North Ventures, and TWAICE raised $12 million from Creandum.

Fourteen investors participated in battery storage funding this quarter.

There were four M&A (merger and acquisition) transactions in the battery storage category in Q1 2020, all with the undisclosed transaction amounts.

Smart Grid

Corporate funding in smart grid companies came to $86 million raised in nine deals compared to $32 million in 15 deals in Q1 2019.

VC funding for smart grid companies increased by 153% in Q1 2020 with $81 million in seven deals compared to $32 million in 15 deals in Q1 2019.

The top 5 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; Leap raised $8 million from Union Square Ventures, Silicon Valley Bank, Congruent Ventures, National Grid Partners, Powerhouse Ventures, Elemental Excelerator, and FJ Labs; and BluWave-ai raised $4 million from Sustainable Development Technology Canada and OCE.

Twenty-two investors participated in smart grid VC funding rounds this quarter with the grid optimization company raising the most.

There were five M&A transactions (none disclosed) in the smart grid sector in Q1 2020.

Efficiency

Corporate funding in energy efficiency came to $7 million in Q1 2020 in three deals compared to $345 million in two deals in Q4 2019. In a YoY comparison, $155 million was raised in two deals in Q1 2019.

VC funding raised by energy efficiency companies in Q1 2020 dropped significantly to $7 million in three deals compared to $30 million in one deal in Q4 2019. However, if we compare the figures YoY, the Q1 of 2020 failed to catch up with the $100 million raised in one deal in Q1 2019.

Eight investors participated in VC funding this quarter.

There was one M&A transaction for $1.4 billion in Q1 2020.

Battery storage systems are emerging as a potential solution for integrating solar and wind renewables in power systems across the globe.

Learn more about Mercom’s comprehensive global battery storage funding report and download a free executive summary by clicking here.

 

Image credit: AES Distributed Energy