With $164 Million, Global Battery Storage VC Funding in Q1 2020 Increased 20% YoY

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.


VC Funding Q4 2019-Q1 2020

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.

Battery Storage and Smart Grid Top VC Funded Deals in Q1 2020

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