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Mercom Capital report: VC funding up for battery storage, down for smart grid, efficiency companies in 1H 2018 YoY

Global VC funding (venture capital, private equity, and corporate venture capital) of $839 million for Battery Storage, Smart Grid, and Efficiency companies in 1H 2018 was 18% lower compared to the more than $1 billion raised in 1H 2017, according to a new report from India-based Mercom Capital Group, llc, a global clean energy communications and consulting firm.

Total corporate funding (including venture capital funding, public market, and debt financing) in 1H 2018 was down with $2.4 billion raised compared to $2.8 billion raised in 1H 2017, a 14% decrease year-over-year (YoY). The decline in funding in 1H was due to lower funding activity in Smart Grid and Efficiency categories while funding increased in the Battery Storage sector.

In Q2 2018, VC funding for Battery Storage, Smart Grid, and Efficiency companies decreased to $367 million in 27 deals compared to $472 million in 23 deals in Q1 2018. Funding amounts were 33% lower YoY compared to the $591 million raised in 24 deals in Q2 2017.

Battery-Storage-Smart-Grid-and-Efficiency-VC-Funding-1H-2017-1H-2018

Battery Storage. VC funding for Battery Storage companies in 1H 2018 was 12% higher with $539 million compared to the $480 million raised in 1H 2017.

Top 5 VC deals in 1H 2018:

  • $80 million raised by Stem
  • $71 million raised by sonnen
  • $65 million secured by Ionic Materials
  • Durapower’s $40 million
  • $40 million raised by Ice Energy

A total of 34 VC investors participated in Battery Storage funding in 1H 2018.

Announced debt and public market financing activity in the first half of 2018 ($142 million in five deals) was 10% higher compared to the first half of 2017 when $129 million was raised in nine deals.

There were four announced Battery Storage project funding deals in 1H 2018 bringing in a combined $34 million compared to $5 million in two deals in 1H 2017.

In 1H 2018 there were a total of eight (one disclosed) Battery Storage M&A transactions, compared to two transactions (one disclosed) in 1H 2017. There were four Battery Storage M&A transactions in Q2 2018. By comparison, there were four Battery Storage M&A transactions in Q1 2018 and one transaction in Q2 2017.

In the first halves of 2018 and 2017, there were two Battery Storage project M&A transactions each. There were two Battery Storage project M&A transactions in Q2 2018. By comparison, there were no Battery Storage project M&A transactions in Q1 2018 and two transactions in Q2 2017.

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