VC Funding in Smart Grid comes in at $65 Million in Q3 2013, Reports Mercom Capital Group

Smart Grid sector sees rare IPO

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 smart grid sector for the third quarter of 2013.


Smart grid venture capital (VC) funding in Q3 2013 totaled $65 million in 12 deals compared to $50 million in 10 deals in Q2 2013. VC funding in the sector has remained flat at this level over the last eight quarters, with the exception of Q3 2012 when $238 million was raised. Total corporate funding in the sector was $129 million, including the $64 million raised in an IPO.

"Funding was slightly up this quarter. We also saw a rare IPO this quarter," commented Raj Prabhu, CEO of Mercom Capital Group.

The Top 5 VC deals were led by Space-Time Insight, which raised $20 million from London-based private equity fund Zouk Capital, which joined current investors Opus Capital Ventures, EnerTech Capital and Novus Energy Partners. On-Ramp Wireless raised $15 million from new investor Enbridge along with existing investors Third Wave Ventures and Energy Technology Ventures. This brings the total amount raised in its Series C round to $31 million.

Varentec raised $8 million from Bill Gates and Khosla Ventures. This was a new addition to Bill Gates' collection of energy investments. Bidgely raised $5 million also from Khosla Ventures; and WaterSmart raised $4.5 million from Physic Ventures, Draper Fisher Jurvetson, Apsara Capital and The Westly Group.

Like the previous quarter, home and building automation companies received the most funding with $36 million in seven deals followed by grid optimization companies with $20 million in one deal.

There were four M&A transactions in Q3. Only one transaction, Schneider Electric's acquisition of Invensys for $5.2 billion, was disclosed. This is Schneider Electric's sixth smart grid acquisition.

The third quarter also saw a successful exit in the IPO of Control4, a provider of automation and control solutions for the connected home, which raised $64 million.

About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Smart Grid, Solar, and Wind and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.


Featured Product

TRA SNOW AND SUN - SOLAR TILE MOUNT

TRA SNOW AND SUN - SOLAR TILE MOUNT

You haven't installed a tile mount that is easier to install than the Solar Tile Mount manufactured by TRA Snow and Sun. Solar Tile Mount is used on all tile roof profiles: flat, mid, and high. It is made in the USA of aluminum alloy for strength and excellent corrosion resistance. Solar Tile Mount is built to allow more ease in installation with more rise from the tile surface to the rail for better air flow below panels. The adjustable base is longer than most allowing attachment 6" to the left or right to have the bracket in the base of the pan of the tile and still fasten to the rafter. Solar Tile Mount is adjustable for counter batten systems from ¾" to 3". The horizontal rail is directly above base fasteners giving greater uplift resistance than any other system. For superior waterproofing apply TRA Snow and Sun's butyl backed VersaFlash aluminum flashing. No tile flashing is needed on top of the tile for greater labor and material cost savings.