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Venture capital (VC) funding into smart grid companies came in at $81 million in 13 deals during the second quarter of this year (Q2'14), according to a new report from Mercom Capital Group. That is compared to $101 million in 21 deals during the first quarter.

The report says the top VC-funded companies in Q2'14 were led by ChargePoint, a provider of an open electric vehicle (EV) charging network, which raised $22.6 million. Sunverge Energy, a developer and manufacturer of distributed energy management systems, raised $15 million, and On-Ramp Wireless, a developer of wireless solutions for energy automation and M2M communications, received $13.6 million in an amended funding round.

Gridco Systems, a smart power management technology company for utilities and industrial power consumers, raised $12 million, and rounding out the top five deals was GeoDigital International, a provider of geospatial information solutions to the electric utility, which raised $5.8 million.

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Twenty-five investors participated in VC funding rounds in Q2’14, and the report notes that Siemens Venture Capital was the only investor participating in more than one deal.

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According to the report, two smart charging companies for plug-in hybrid vehicles (PHEVs) and vehicle-to-grid (V2G) companies raised a combined $22.6 million, and two smart grid communication technology companies raised $18.6 million. Grid optimization companies raised a combined $17.8 million in two deals, while distributed generation and storage companies raised $15.5 million also in two deals. Three demand response companies raised $3.5 million, and two data analytics companies raised $2.54 million.

The report says there were 16 smart grid mergers and acquisitions (M&A) transactions - four disclosed - totaling $147 million in Q2’14. The top disclosed transactions were the $117 million acquisition of Power-One’s Power Solutions business by Bel Fuse, an electronic product manufacturer for computers, networking and telecommunications, followed by the $23.5 million acquisition of the entire issued share capital of Utility Partnership Ltd., a provider of end-to-end utility infrastructure, smart metering and energy management solutions in the U.K., by Smart Metering Systems PLC, a provider of advanced smart metering solutions.

There was also the $3.86 million acquisition of BGlobal Metering, a company which designs, supplies, installs and manages smart energy metering systems, by Energy Assets Group, an independent provider of industrial and commercial gas metering services in the U.K., and the $2.3 million acquisition of VCI Controls, a heating ventilation and air conditioning solutions provider, by SustainCo, a provider of infrastructure solutions and services.

Given the convergence of technologies this year, Mercom says it has expanded its smart grid coverage to include the battery/storage and energy efficiency sectors. 

The report says companies in the battery/storage space received $90 million in six deals, compared to $180 million in eight deals during Q1’14. There were also five debt and public market financing deals in the sector totaling $157 million, as well as nine M&A transactions, of which only three transactions were disclosed totaling $24 million.

The report says efficiency companies raised $113 million in 16 deals in Q2’14, compared to $156 million in 12 deals in Q1’14. There were also 10 M&A transactions this quarter in the efficiency category, of which only four had disclosed details totaling $409 million.

For more information regarding the Mercom report, click here.




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