Venture Capital Funding in SmartGrid Declines by Half in 2011

As per the study by Mercom Capital Group LLC, the average Venture Capital Funding declined by about 50 percent from almost USD 15 million in 2010 to USD 7.5 million in 2011. The report revealed that the funds from Venture Capital amassed USD 377 million in 50 deals in 2011 as against USD 769 million in 51 deals in 2010.

The highlighting factor of the report was that though the number of transactions in the two years remained almost same, the funds collected from these deals was remarkably lesser. Also, the number of Venture Capital investors rose 92 in 2011 from 87 in 2010. Both these facts indicate that the investors are interested in Venture Capital funding, but are now becoming more risk averse. The leading market players such as Siemens, Schneider Electric, ABB and GE were the key drivers for Mergers and Acquisition during 2011.

iControl Networks topped the Venture Capital Deals with the contribution of USD 51.6 million. Other market players in the smart grid and energy management sector who became the part of these venture capital deals were SmartSynch ($25.7 million), Silver Spring Networks ($24 million), Gridpoint ($23.6 million), and JouleX, ($17 million).

Venture Capital investors who topped in 2010 continued their dominance in 2011 as well. GE with six deals, Emerald Technology Ventures with five deals and Kleiner Perkins Caufield & Byers with five deals were the leading investors in 2011 as well.