Funding into Battery Storage and Efficiency companies was down in the first half of 2020
Mercom Capital Group, LLC, a global clean energy communications and consulting firm, released its report on funding and mergers and acquisitions (M&A) activity for the global Battery Storage, Smart Grid, and Energy Efficiency sectors for the second quarter (Q2) and first half (1H) of 2020.
Total corporate funding (including venture capital funding, public market, and debt financing) for Battery Storage, Smart Grid, and Efficiency companies in 1H 2020 was down 38% year-over-year (YoY) with $1.5 billion compared to $2.4 billion raised in 1H 2019.
Global VC funding (venture capital, private equity, and corporate venture capital) for Battery Storage, Smart Grid, and Efficiency companies in 1H 2020 was 51% lower with $858 million compared to over $1.8 billion in 1H 2019.
In Q2 2020, VC funding for Battery Storage, Smart Grid, and Efficiency companies increased with $605 million in 26 deals compared to $252 million in 16 deals in Q1 2020. Funding amounts were 61% lower YoY compared to the $1.5 billion raised in 21 deals in Q2 2019. The decrease in funding activity was primarily due to a billion-dollar deal in the Battery Storage sector in Q2 2019.
Battery Storage
VC funding in Battery Storage companies in 1H 2020 was down by 61%, with $536 million in 14 deals compared to $1.4 billion in 17 deals in 1H 2019. The decrease was due to Northvolt's $1 billion funding round in Q2 2019.
The Top 5 VC funding deals in 1H 2020 were the following: QuantumScape raised $200 million, ProLogium Technology raised $100 million, Demand Power Group secured $71 million, Highview Power secured $46 million, and Nanotech Energy raised $28 million. A total of 26 VC investors participated in Battery Storage funding in 1H 2020.
Announced debt and public market financing activity in the first half of 2020 ($180 million in five deals) was 67% lower compared to the first half of 2019 when $547 million was raised in five deals.
There were five announced Battery Storage project funding deals in 1H 2020, bringing in a combined $26 million compared to $499 million in four deals in 1H 2019.
In 1H 2020 there were a total of eight (all undisclosed) Battery Storage M&A transactions compared to six transactions (one disclosed) in 1H 2019.
Smart Grid
VC funding in Smart Grid companies in 1H 2020 was 79% higher with $275 million compared to the $154 million raised in 1H 2019.
In Q2 2020, VC funding for Smart Grid companies more than doubled with $194 million in 14 deals compared to $81 million in seven deals in Q1 2020. Funding amounts were 59% higher YoY compared to $122 million raised in seven deals in Q2 2019.
The Top 5 VC funding deals in 1H 2020 were: SmartRent raised $60 million, SmartWires raised $43 million, FreeWire Technologies received $25 million, Urbint raised $20 million, and Urjanet raised $15 million.
Announced debt and public market financing for Smart Grid companies came to $10 million in three deals in 1H 2020 compared to $1 million in one deal in 1H 2019.
In 1H 2020, there were a total of six Smart Grid M&A transactions (all undisclosed) compared to 18 transactions (one disclosed) in 1H 2019.
Efficiency
VC funding for Energy Efficiency companies in 1H 2020 was 77% lower with $47 million compared to the $207 million raised in 1H 2019.
In Q2 2020, VC funding for Efficiency companies increased with $40 million in four deals compared to $7 million in three deals in Q1 2020. Funding amounts were 63% lower YoY compared to $107 million raised in four deals in Q2 2019.
The Top 5 VC funding deals in 1H 2020 were as follows: Juganu raised $18 million, BrainBox AI raised $12 million, SmartAC.com secured $10 million, Rebound Technologies received $5 million, and HyperBorean received $2 million.
Announced debt and public market financing activity in the first half of 2020 ($500 million in one deal) was 793% higher compared to 1H 2019 when $56 million was raised in two deals.
In 1H 2020 there was one disclosed Efficiency M&A transaction compared to eight transactions (two disclosed) in 1H 2019.
To get a copy of the report, visit: https://mercomcapital.com/product/1h-q2-2020-funding-ma-report-storage-grid-efficiency