VC funding for energy firms rise across the world: Mercom
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Hyderabad: Venture capital funding for energy efficiency companies rose across the world this year, according to clean energy consulting firm Mercom Capital.
During June-September, these companies raised $316 million venture capital funding in 17 deals, up from $211 million in 18 deals in the previous quarter. The companies could raise $667 million so far this year, against $604 million in the same period last year. The deals also include private equity and corporate venture capital.
In India, the only deal this quarter, according to Mercom, was Green India Building Systems and Services (GIBSS), a provider of energy efficiency building solutions which raised an undisclosed amount from ResponsAbility Ventures I and Infuse Ventures. GIBSS offers services including geothermal air conditioning, hot water cogeneration systems and LED technologies.
While there were no VC funding deals in the country in the first and the second quarter (according to the calendar year), electrical equipment company Havells acquired 51% stake in Promptec Renewable Energy Solutions, an LED manufacturer, at an enterprise value of Rs.65 crore.
Globally, there were 31 investors who took part in funding rounds this quarter. Within the energy efficiency segment, efficient home, building technology companies raised the most funding while lighting companies had the most deals.
The deals include $150 million raised by View, a developer of a kind of glass that adjusts building windows in response to external conditions and user preferences and simultaneously conserves energy. Four out of the five top energy efficiency companies to grab funding are from US and one from China.
Also, there were four debt and public market financing deals in the efficiency category for $410 million this quarter compared to $355 million in 5 deals in second quarter this year.
The Mercom Capital report also includes findings on funding and mergers of smart grid and battery or storage sector.
Funding in smart grid companies globally has slightly increased this year versus last year to reach $370 million. On the other hand, funding dropped in battery and storage companies from last year’s $383 million to $290 million.