Smart grid VC funding remained weak in Q2 2012


Raj Prabhu,
Managing Partner,
Mercom Capital
Austin, TX, U.S.A. — (METERING.COM) — July 24, 2012 – Smart grid venture capital funding remained weak in Q2 2012 totaling $66 million in nine deals, according to the latest quarterly update from Mercom Capital Group.

This is broadly similar to the last two quarters, where 10 deals were recorded in each with values of $66 million and $62 million respectively.

“(This is) a reflection of shifting business models as the industry continues to struggle to understand customer needs and address customer misconceptions along with security concerns and other issues,” explained Raj Prabhu, managing partner at Mercom Capital Group.

The top VC deals in Q2 2012 were the $15 million raised by broadband PLC systems company Power Plus Communications and the $11.3 million raised by Tendril. Other top deals included $10.1 million raised by monitoring and control applications provider On-Ramp Wireless, $8 million raised by each of power management systems developer Gridco and energy measurement and management company Navetas, and $6 million raised by water network solution provider TaKaDu.

Merger and acquisition (M&A) activity in Q2 2012 totaled $14 billion in seven transactions. Top M&A transactions were the $11.8 billion acquisition of Cooper Industries by Eaton, the $2.3 billion acquisition of Elster by U.K. investment company Melrose, and the $72 million acquisition of ZigBee systems developer Ember by Silicon Labs.