Battery storage, smart grid, efficiency companies raise $ 435 million in VC funding in Q1

In the first quarter of 2017, battery storage, smart grid and energy efficiency companies attracted $435 million in venture capital (VC) funding (including private equity and corporate venture capital), the latest quarterly report by Mercom Capital Group has found.

VC funding for smart grid companies reached $164 million in 14 deals, compared to Q1 2016 when $110 million was raised in 14 deals. In comparison to Q4 2016, the amount increased threefold from $46 million invested across six deals.

Forty investors took part in the smart grid VC funding rounds this quarter, with those focused on PHEV and V2G technology raising the most.

With $58 million raised in eight deals in Q1 2017, VC funding for battery storage companies went up YoY from $54 million raised in 10 deals in Q1 2016. However, this is a precipitous drop in comparison to the last quarter of 2016, when $156 million was raised in nine deals.

Fifteen investors participated in the battery storage funding this quarter with flow battery companies grabbing the limelight. Debt and public market financing for storage amounted to $22 million in two deals, which is drastically less compared to $55 million in two deals in Q4 2016.

A strong positive development took place in the project fundraising for battery storage in Q1 2017 that attracted a combined $5 million compared to one deal that was undisclosed in Q4 2016 and no deals in Q1 2016.

There was also one battery storage project fund announced in Q1 2017 for $152 million.

In Q1, VC investment in energy efficiency firms posted strong growth with $213 million in 14 deals up from $170 million in five deals in Q4 2016. The YoY investment came in slightly lower in Q1 2016, when it totaled $211 million across 14 deals.

Twenty-two investors participated in VC funding this quarter, with efficient home/building companies bringing in the most funding.

Debt and public market financing for efficiency companies dramatically shrunk to $301 million in three deals this quarter from $928 million in five deals in Q4 2016.