Global VC funding in Smart Grid sector remains flat in Q1 2013

NEW DELHI: Global venture capital funding in the smart grid sector in the first three months of this year totalled USD 62 million through nine deals, nearly identical to the first quarter of last year, according to clean energy communications and consulting firm Mercom Capital Group.

It said the same amount was raised by smart grid companies in the first quarter of 2012, but in 10 deals.

The report further noted that the pace of funding has remained largely unchanged for the past five quarters.

"After peaking in Q2 2010, VC investments in smart grid have slowed down considerably, and continue to amble along with no clear direction," Mercom Capital Group CEO Raj Prabhu said adding that Silver Spring Networks' long awaited IPO was the lone highlight in an otherwise slow quarter.

The smart grid sector saw a rare IPO, that of Silver Spring Networks, a provider of smart grid products and services to utilities, that raised USD 81 million by offering 4.75 million shares at USD 17 a piece.

The top five VC deals in the first quarter of 2013 raised a combined USD 52 million out of which the top two VC deals raised USD 15 million each.

There were only four M&A transactions in Q1 2013. One of the transactions; Toshiba Corporation's acquisition of privately-held energy management company Consert was disclosed for a total of USD 11 million.