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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.


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.


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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