Investments continue to rise as battery storage cos are poised to play a vital role in the transition from fossil fuels to renewables: Mercom Capital
Total corporate funding in the battery storage, smart grid and efficiency companies in first half (H1) 2021 was up exponentially year-over-year at $10.4 billion compared to $1.5 billion raised in the Covid hit first half of 2020.
In Q2 2021, VC funding in these three areas increased with $3.6 billion in 28 deals compared to $1.3 billion in 24 deals in Q121. Funding amounts were 493 per cent higher Y-o-Y compared to the $605 million raised in 26 deals in Q2 2020. The increase in funding activity was primarily due to a multi-billion dollar deal in the battery storage sector this quarter.
In first half of 2021, $9.6 billion was raised in corporate funding in battery storage from 41 deals compared to the $716 million raised in 19 deals in 1H 2020.
VC funding in battery storage companies in H1 was up significantly with $4.4 billion in 33 deals compared to $536 million in 14 deals in 1H 2020.
Announced debt and public market financing activity in the first half of 2021 ($5.2 billion in eight deals) spiked compared to the first half of 2020, when $180 million was raised in five deals.
VC funding in smart grid companies in H1 was 68 per cent higher with $463 million compared to the $275 million raised in 1H 2020. Announced debt and public market financing for smart grid companies came to $8 million in one deal in 1H 2021 compared to $10 million in three deals in 1H 2020.
VC funding for energy efficiency companies in H1 2021 was 89 per cent lower with $5 million compared to the $47 million raised in 1H 2020.