WORLD-GENERATION MAY/JUNE 2015 V.27 #2
21
PERSPECTIVE
Mercom Capital Group released its
report on funding and mergers and acquisi-
tions (M&A) activity for the Smart Grid,
Battery/Storage and Energy Efficiency sec-
tors for the first quarter of 2015.
SMART GRID
Venture Capital (VC) funding in the
Smart Grid sector in Q1 2015 came in at
$185 million in 15 deals, compared to $59
million in 13 deals in Q4 2014. There were
four early stage deals, including three
Series A and one Seed funding deal in Q1.
There were 37 total VC investors
including one accelerator who participated
in VC funding rounds this quarter. Within
Smart Grid, Smart Grid Communications
Technology companies received the most
funding. EnerTech Capital was the only
investor participating in multiple deals this
quarter with three.
The top VC funded deal in Q1 2015 was
the $115 million raised by SIGFOX, a wire-
less connectivity solutions provider for
smart metering, building intelligence and
M2M using ultra narrow band technology.
Other top deals for the quarter were the
$15 million raised by Tempered Networks,
a cyber-security company; the $14 million
raised by Blue Pillar, a provider of software-
based solutions for real-time visibility and
control into distributed energy assets; the
$11 million raised by Enbala Power
Networks, a provider of demand-side grid
optimization services for commercial and
industrial large-scale electricity users; and
the $8.4 million raised by TROVE
Predictive Data Science, a provider of appli-
cations for load forecasting, revenue protec-
tion, demand-side management and pro-
gram planning for utilities.
There were seven Smart Grid M&A
transactions (four disclosed) totaling $196
million. The top disclosed transaction was
the acquisition of AlertMe, a home automa-
tion platform, energy monitoring and con-
trol, and analytics provider, by British Gas
(part of the Centrica plc group) for $100
million. Bluegiga Technologies, a Finland-
based provider of short-range wireless con-
nectivity and software solutions for home
automation and industrial automation, was
acquired by Silicon Labs for $61 million.
RadioPulse, a Seoul-based developer of
ZigBEE for AMR, wireless automation,
home network and high technology mar-
kets, was acquired by IXYS for $22.5 mil-
lion. Detectent, a provider of utility data
analytics solutions, was acquired by Silver
Spring Networks for $12 million.
BATTERY/STORAGE
VC funding for Battery/Storage compa-
nies came to $69 million in seven deals,
compared to $47 million in seven deals in
Q4 2014. The top deals include the $20 mil-
lion raised by Boston Power, a manufactur-
er of lithium-ion batteries for electric vehi-
cles and stationary energy storage, and the
$20 million raised by Sakti3, a developer of
solid-state rechargeable lithium-ion battery
technology. Eos Energy Storage, a develop-
er and manufacturer of zinc hybrid cathode
energy storage solutions for electric utili-
ties, raised $15 million. TAS Energy, an
energy storage solutions provider that com-
bines turbine chilling with thermal energy
storage tanks, raised $10 million, and ZAF
Energy Systems, a developer of nickel-zinc
and zinc-air battery technologies, raised
$2.2 million.
There was just one debt and public
market financing deal announced for
Battery/Storage technology, the $130
million raised by Bloom Energy, a
manufacturer of solid oxide fuel cell
technology products.
There were five M&A transactions in
the Battery/Storage category, of which
only two disclosed funding amounts total-
ing $2.3 billion.
ENERGY EFFICIENCY
VC funding for the Efficiency sector
came to $140 million in 15 deals, compared
to $192 million in 25 deals in the previous
quarter. The top VC deal was by Verne
Global, a developer of energy efficient data
centers, securing $98 million, followed by
Terralux, a designer and manufacturer of
LED lighting and building intelligence solu-
tions, which raised $11 million. RayVio, a
solid state ultraviolet LED solutions provid-
er, raised $9.3 million. Tendril, a provider of
an open, cloud-based energy services man-
agement software platform that delivers the
infrastructure, analytics and understanding
required to personalize energy usage,
raised $7.2 million; and Lucid Design
Group, a provider of a building operating
system platform for intelligent buildings
that connects hardware, software and peo-
ple through a collaborative interface, raised
$5.9 million.
Efficiency companies also raised $183
million in debt and public market financing
in three deals in Q1 including one IPO.
MLS, a Chinese LED manufacturer and the
parent company of USA-based Forest
Lighting, raised $154 million through its ini-
tial public offering and began trading on
the Shenzhen Stock Exchange in China in
March 2015.
There were 11 M&A transactions in
the Efficiency sector, of which five dis-
closed details totaling $3.1 billion, com-
pared to 10 transactions disclosed for $131
million in Q4 2014. The largest disclosed
transaction was the $2.8 billion acquisition
of an 80.1 percent interest in Lumileds, a
Royal Philips LED lighting components
business, by GO Scale Capital Investment
Consortium, an investment fund spon-
sored by GSR Ventures and Oak
Investment Partners.
FUNDING IN Q1 2015
BY RAJ PRABHU
CEO,MERCOM CAPITAL GROUP
