Smart grid venture capital funding in the smart grid sector in Q3 2013 came in at $65 million in 12 deals – marginally up from the $50 million in 10 deals in Q2 2013, according to Mercom Capital Group’s latest quarterly review.
However, overall VC funding in the sector continues to remain flat, as it has over the last eight quarters, with the exception of Q3 2012 when $238 million was raised.
The top 5 VC deals were led by Space-Time Insight, which raised $20 million from London-based private equity fund Zouk Capital, which joined current investors Opus Capital Ventures, EnerTech Capital and Novus Energy Partners.
On-Ramp Wireless raised $15 million from new investor Enbridge along with existing investors Third Wave Ventures and Energy Technology Ventures. This brings the total amount raised in its Series C round to $31 million.
Varentec raised $8 million from Bill Gates and Khosla Ventures. This was a new addition to Bill Gates’ collection of energy investments.
Bidgely raised $5 million also from Khosla Ventures; and WaterSmart raised $4.5 million from Physic Ventures, Draper Fisher Jurvetson, Apsara Capital and The Westly Group.
Like the previous quarter, home and building automation companies received the most funding with $36 million in seven deals, followed by grid optimization companies with $20 million in one deal.
There were four M&A transactions in Q3. Only one transaction, Schneider Electric’s acquisition of Invensys for $5.2 billion, was disclosed. This is Schneider Electric’s sixth smart grid acquisition.
The third quarter also saw a successful exit in the IPO of Control4, a provider of automation and control solutions for the connected home, which raised $64 million.