Corporate Funding in Battery Storage, Smart Grid And Efficiency Records 38% Decline

on July 24, 2020
smart-energy-international

Global consulting firm Mercom Capital Group has released its report on funding, mergers and acquisitions within the battery storage, smart grid, and energy efficiency sector during the first half of 2020.

Total corporate funding (including venture capital funding, public market, and debt financing) for battery storage, smart grid, and energy 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 venture capital 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, according to the new Mercom Capital report.

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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Fractal Energy Storage ConsultantsCorporate Funding in Battery Storage, Smart Grid And Efficiency Records 38% Decline