In the first quarter of this year, $1.6bn was raised in VC funding by smart grid, battery storage and energy efficiency companies, up 21% on the $1.3bn raised in Q1 2021, according to Mercon Capital Group.

Total corporate funding in smart grids was seven per cent higher, with $316m in 14 deals compared with $295m in 11 deals in Q1 2021.

VC funding for smart grid companies increased nine per cent in Q1 2022 with $312m in 12 deals compared with $287m in ten deals in Q1 2021.

The top five VC-funded smart grid companies were: Tibber, which secured $100m from Summa Equity; Span raised $90m from Fifth Wall Climate Tech, Wellington Management, Angeleno Group, Foot Print Coalition, Obsidian Investment Partners and A/O PropTech; Utilidata raised $27m from Moore Strategic Ventures, Microsoft Climate Innovation Fund, Nvidia, Keyframe Capital, Braemar Energy Ventures and Muus Asset Management; David Energy raised $21m from Keyframe Capital, Union Square Ventures, Equal Ventures, Box Group, MCJ Collective, Toba Capital, Turntide and James Dice; and Jet Charge raised $18m from RACV, Clean Energy Innovation Fund, Claremont Capital, Greg Roebuck and Simon Monk.

There were 39 investors that participated in smart grid VC funding rounds during the quarter.

Around $4m was raised in two debt and public market financing deals in Q1 2022. There was one $484m public market financing deal in Q4 2021 and $8m was raised in one public market financing deal in Q1 2021. In Q1 2022, there were three M&A transactions compared with two in Q4 2021 and six in Q1 2021.

Total corporate funding including VC, debt and public market financing in battery energy storage came to $12.9bn in 26 deals compared with $4bn in 27 deals in Q4 2021. Funding was up significantly year-over-year compared with $4.7bn in 18 deals in Q1 2021.

VC funding including private equity and corporate venture capital raised by battery storage companies in Q1 2022 came to $1.1bn in 21 deals, up 15% compared with $1bn in 14 deals in Q1 2021. Quarter-over-quarter funding was 28% lower compared with $1.6bn in 21 deals in Q4 2021.

The top five VC funded battery storage companies in the quarter were: Hydrostor, which raised $250m from Goldman Sachs Asset Management; Sunfire raised $215m from Copenhagen Infrastructure Energy Transition Fund I and Blue Earth Capital; Factorial Energy raised $200m from Mercedes-Benz and Stellantis; Viridi Parente raised $95m from Thomas Golisano, Ashtead Group, Sunbelt Rentals and National Grid Partners; and Our Next Energy (One) raised $65m from BMW i Ventures, Coatue Management, Breakthrough Energy Ventures, Assembly Ventures, Flex and Volta Energy Technologies.

There were 76 VC investors that participated in battery storage funding during the quarter.

In Q1 2022, announced debt and public market financing for battery storage technologies were higher, with $11.7bin in five deals compared with $2.4bn in six deals in Q4 2021 and $3.7bn in four deals in Q1 2021.

There were five M&A transactions involving battery storage companies in Q1 2022. In Q4 2021, there were nine M&A transactions. Looking year-on-year, there were four battery storage M&A transactions in Q1 2021. There were 13 battery storage project M&A transactions in Q1 2022.

Total corporate funding in energy efficiency came to $109m in four deals compared with $118m in the same number of deals in Q4 2021. In a year-on-year comparison, $5m was raised in one deal in Q1 2021.

VC funding raised by energy efficiency companies in Q1 2022 came to $109m in four deals compared with $118m in four deals in Q4 2021. In a year-on-year comparison, $5m was raised in one deal in Q1 2021.

Thirteen investors participated in VC funding during the quarter. There were no energy efficiency M&A transactions in Q1 2022. There was one M&A transaction in Q4 2021. In Q1 2021, there was one M&A transaction for $300m.