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Mercom Capital Group has released its report on venture capital funding and mergers and acquisitions within the energy efficiency, battery storage and smart grid sectors in 2019.

According to the study, the three sectors recorded an 18% decline in funding compared to 2018. Only $2.3 billion in funding was made available in 2019 from $2.8 billion the previous year.

Battery storage

Total corporate funding (including venture capital funding, public market and debt financing) in 2019 also went down by 22% with $3.8 billion compared to $4.9 billion in 2018.

Venture capital funding within the battery storage sector increased by 103% in 2019 to $1.7 billion made in 32 deals from $850 million made in 49 deals in 2018.

Total corporate funding, including debt and public market financing, increased to $2.8 billion in 2019 compared to $1.3 billion in 2018 within the battery storage sector.

Lithium-ion based battery technology companies received the most funding in 2019 with $1.4 billion.

78 venture capital investors participated in Battery Storage deals in 2019 compared to 73 in 2018.

10 mergers and acquisition deals were closed in the battery storage industry in 2019 compared to 16 which were made in 2018.

Smart grid

Smart Grid companies raised $300 million in venture capital funding in 38 deals in 2019, a 43% decrease compared to the $530 million raised in 29 deals in 2018.

Seventy-eight investors funded smart grid companies in 2019, compared to 69 in 2018 and there were 29 mergers and acquisition deals made in 2019 compared to 12 which were made in 2018.

Venture capital funding for energy efficiency companies in 2019 was flat with $268 million compared to the $265 million raised in the first 9 months of 2018.

Click here for more information about the report.