In 2018, the first nine months saw a total of three energy efficiency merger and acquisition (M&A) transactions, compared to seven transactions in the same period in 2017
Energy efficiency companies raised 8% lower venture capital (VC) funding during the first nine months of 2018 as compared to previous year, according to a report by Mercom Capital Group – a global clean energy communications and consulting firm.
The companies in energy efficiency sector raised $265 million in VC funding during January-September period 2018 as compared to $289 million raised in similar period in 2017, said the report.
Third quarter saw increase
However, VC funding for energy efficiency firms increased to $100 million in six deals in July-September quarter of 2018 as compared to $67 million raised in six deals in the previous quarter of this year. The VC funding witnessed a jump of 113% on year-on-year basis. In the third quarter of 2017, $47 million were raised in eight deals, the report stated.
As per the report, the major five VC deals in the first nine months of this year were of UrbanVolt, which secured $64 million, Ecobee raised $61 million and $36 million in two separate deals, $27 million raised by Carbon Lighthouse, and $25 million secured by Arcadia Power. Overall 54 VC investors have participated in funding the energy efficiency sector in the given period.
Announced debt activity down
In the first nine months of 2018, announced debt and public market financing activity was 91% lower with $212 million in two deals compared to $2.3 billion raised in 13 deals in he similar period a year ago.
In the said nine-month period, $694 million were raised by Property Accessed Clean Energy (PACE) financing transactions in three deals as compared to $873 million in four deals in the year-ago period.
In 2018, the first nine months saw a total of three energy efficiency merger and acquisition (M&A) transactions, compared to seven transactions in the same period in 2017. There were no efficiency M&A transactions took place in the third quarter of 2018. There were two M&A transactions in energy efficiency sector in both the second quarter of 2018 and third quarter of 2017.