Austin, TX, U.S.A. — (METERING.COM) — April 25, 2013 – It was an anemic quarter for smart grid venture capital (VC) funding in Q1 2013, coming in at $62 million in nine deals, according to Mercom Capital Group’s latest quarterly review.
As such this is consistent with four of the past five quarters – with the lone exception of Q3 2012 with Alarm.com’s monster $136 million raise.
“After peaking in Q2 2010, VC investments in the smart grid sector have slowed down considerably, and continue to amble along with no clear direction,” commented Raj Prabhu, CEO of Mercom. “Silver Spring Networks long awaited IPO was the lone highlight in an otherwise slow quarter.”
By technology group, grid optimization companies took home most of the VC funding in Q1 2013.
The top two VC deals each raised $15 million. These were by Cylance, a provider of cybersecurity products for the infrastructure industry, and Sentient Energy, a developer of advanced grid monitoring solutions that consist of modular intelligent monitoring devices and software applications. These were followed by the $11.3 million raise by Utility Funding, $5.8 million raised by Xtreme Power, and $4.8 million raised by Smarter Grid Solutions.
There were only four M&A transactions in Q1 2013. One of the transactions was disclosed for a total of $11 million. Last quarter, $22 million in M&A activity was disclosed in the same number of transactions.
Despite a slow quarter the smart grid sector saw a rare IPO, with Silver Spring Networks, a provider of smart grid products and services to utilities, raising $81 million.