Corporate Funding for Energy Storage Firms Up 69% YoY to $22 Billion in 9M 2022
VC funding for energy storage, smart grid, and energy efficiency companies up by 14% to $2.8 billion
Global corporate funding for energy storage, smart grid, and energy efficiency companies in the first nine months (9M) of 2022 increased to $25 billion compared to $15.1 billion raised in 9M 2021, a 66% increase year-over-year (YoY), according to Mercom’s 9M and Q3 2022 Funding and M&A Report for Storage, Grid, and Efficiency.
Total venture capital (VC) funding for energy storage, smart grid, and energy efficiency companies increased by 14% to $2.8 billion in 35 deals in Q3 2022 compared to $2.4 billion raised in 36 deals in Q2 2022. The numbers were 16% lower than the $3.3 billion raised in 35 deals during Q3 2021.
As per the report, corporate funding for energy storage companies in 9M 2022 increased by 69%, with $22 billion raised in 92 deals compared to $13 billion raised in 74 deals in 9M 2021.
VC funding for energy storage companies fell by 44% to $4 billion in 73 deals compared to $7.2 billion in 60 deals during the same period last year.
The top VC funding deals in 9M 2022 included Eolian, which raised $925 million; Group 14 Technologies, which raised $400 million; Hydrostor, which raised $250 million; Sunfire, which raised $215 million; and Factorial Energy and Nexeon, which raised $200 million each.
A total of 217 VC investors participated in energy storage funding in 9M 2022.
The announced debt and public market financing activity in 9M 2022 increased by 210% and stood at $18 billion in 19 deals compared to $5.8 billion in 14 deals during the corresponding period last year. The funding raised in 9M 2022 was the highest in a year since 2014.
The first nine months also saw a growth in M&A transactions, with 23 energy storage M&A transactions recorded, compared to 15 transactions in 9M 2021.
There were 30 energy storage project acquisitions in 9M 2022 compared to 31 during the same period last year.
The report states that VC funding in the smart grid in 9M 2022 increased by a massive 162% YoY, with a record $2.5 billion compared to $936 million raised in 9M 2021.
In Q3 2022, VC funding for smart grid stood at $1.7 billion in nine deals, an increase of 311% compared to $419 million in eight deals in Q2 2022.
Some of the top VC funding deals for smart grid companies in 9M 2022 included $1 billion raised by Terawatt Infrastructure; $243 million raised by Gridserve; $200 million raised by Arcadia; $128 million raised by Sense; and $40 million raised by GridX.
A total of 93 VC investors participated in smart grid funding in 9M 2022.
The announced debt and public market financing activity for smart grid companies stood at $307 million in four deals in 9M 2022, compared to $831 million in three deals in 9M 2021.
In the first nine months of 2022, there were 18 M&A transactions compared to 17 during the same period last year.
VC funding for energy efficiency companies in 9M 2022 stood at $269 million compared to $5 million in 9M 2021.
A total of 30 VC investors participated in energy efficiency funding in 9M 2022.
To get a copy of the report, please visit: https://mercomcapital.com/product/9m-q3-2022-funding-ma-report-for-storage-grid-efficiency/.