In Q1 2020, $252 million was raised by battery storage, smart grid, and energy efficiency companies, a 20% increase from the $210 million raised in Q1 2019. This is according to a new report by Mercom Capital Group.
Battery Storage
Total corporate funding (including venture capital, debt, and public market financing) in battery storage came to $244 million in nine deals compared to $635 million in 10 deals in Q4 2019. Funding was up 88% year-over-year (YoY) compared to $130 million in nine deals in Q1 2019.
VC funding (including private equity and corporate venture capital) raised by battery storage companies in Q1 2020 came to $164 million in six deals compared to $78 million in seven deals in Q1 2019. Quarter-over-quarter funding was also higher compared to $126 million in seven deals in Q4 2019.
According to the report, the top VC funded battery storage companies this quarter were:
- Demand Power Group, which raised $71 million from Star America;
- Highview Power 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.
A total of 14 investors participated in battery storage funding this quarter. In Q1 2020, announced debt and public market financing for Battery Storage technologies was 54% higher YoY compared to $52 million in two deals in Q1 2019. One battery storage project fund of $140 million was also announced in the quarter.
There were four M&A transactions involving battery storage companies in Q1 2020 (no transaction amounts disclosed). There were no M&A transactions in Q4 2019. There were four M&A transactions in Q1 2019, of which only one disclosed the transaction amount.
