Mercom Capital Group has released its report on funding and mergers and acquisitions (M&A) activity for the smart grid sector during the second quarter of 2013.
Smart grid venture capital (VC) funding in Q2 2013, totaled $50 million in ten deals. Except for one quarter, Q3 2012, VC funding has been stuck in the $50-$70 million range with nine to 12 deals for almost two years, according to Mercom.
“Even though the number of deals were consistent compared to the last few quarters, this was one of the lowest funding quarters in the last four years,” commented Raj Prabhu, CEO of Mercom Capital Group.
The Top 5 deals were led by Enlighted, which raised $20 million in a Series C round. New investor RockPort Capital led the round and was joined by new investor DFJ JAIC. Existing investors Kleiner Perkins Caufield & Byers, Draper Fisher Jurvetson, and Intel Capital also participated in the round. C3 Energy raised $15 million. Optimum Energy raised $12.2 million in a round led by new investor Navitas Capital (backed by a venture capital advisory relationship with Johnson Controls); the round also included existing investor Columbia Pacific Capital Management. Ecolibrium Energy received $1.6 million from Infuse Ventures and International Finance Corporation. Rounding out the Top 5 was Integrated Energy Management Solutions, which raised $1 million.
Home and building automation companies totaled the most deals in the sector ($33 million in five deals), followed by grid optimization companies ($17 million in three deals) and advanced meter infrastructure (AMI) and security companies with one deal each.
There were three M&A transactions in Q2 2013. The lone disclosed transaction this quarter was Cisco’s acquisition of JouleX for $107 million. Last quarter, there were four transactions, of which only one was disclosed for $11 million.