Total corporate funding (including venture capital funding, public market, and debt financing) for battery storage, smart grid, and energy efficiency companies in 1H 2020 dropped 38% year-over-year (YoY) with $1.5 billion compared to $2.4 billion raised in 1H 2019. That’s according to a new report from Mercom Capital Group.
The report notes that 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 61%, with $536 million in 14 deals compared to $1.4 billion in 17 deals in 1H 2019. The report claims 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.
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