VC funding for storage cos drops in Q1 2016 - Mercom

Battery and storage companies raised just USD 54 million (EUR 47.7m) of venture capital in 10 deals during the first quarter (Q1) of 2016, a drop of 50% compared with the preceding quarter, says a report by Mercom Capital Group llc.

In the final quarter of 2015, the sector received USD 108 million in eight deals. Q1 2016 venture capital funding was also down compared with the year-ago quarter, when battery and storage firms raised USD 69 million in seven deals.

Sunverge Energy of the US collected by far the highest amount -- USD 36.5 million -- from AGL Energy, the Australian Renewable Energy Agency (ARENA), SB China Capital, Siemens Venture Capital and Total Energy Ventures International. It was followed by VionX Energy, which raised USD 5 million, Skeleton Technologies with USD 4.3 million, Geli with USD 3 million and Voltaiq with USD 1.6 million.

Battery and storage companies brought in USD 29 million of debt and public market financing in two deals, compared to USD 32 million in three deals in the previous quarter.

The number of merger and acquisition (M&A) deals was two, the same as in the previous quarter, while in the first quarter of 2015 there were five such transactions in the sector.

Overall, storage, smart grid and efficiency companies raised USD 375 million of venture capital in Q1. Smart grid venture capital funding rose to USD 110 million from USD 56 million in the fourth quarter in 2015, while efficiency technology companies also recorded an increase to USD 211 million from USD 185 million.

Venture capital funding for battery and storage companies in 2015 was USD 397 million, a decline from USD 431 million in 2014, according to previous Mercom data.

(USD 1.0 = EUR 0.883)

Choose your newsletter by Renewables Now. Join for free!