According to a report released by the Mercom Capital Group, Energy Storage and Smart Grid sectors have raised a total of $2.2 billion and $1.1 billion, respectively, in corporate funding in the first quarter of 2023.
Energy Storage funding has decreased significantly YoY, with $2.2 billion in 27 deals compared to $12.9 billion in 27 deals in Q1 2022. VC funding raised by Energy Storage companies in Q1 2023 was $1.1 billion in 19 deals, an 8% decrease YoY compared to $1.2 billion in 22 deals in Q1 2022. On the other hand, Smart Grid funding increased YoY, with $1.1 billion in 18 deals in Q1 2023 compared to $331 million in 15 deals in Q1 2022.
The top five VC-funded Battery Storage companies in Q1 2023 were Electriq Power, Our Next Energy, WeView, NanoGraf, and Caban Systems. The announced Energy Storage project funding in Q1 2023 was $2 billion in nine deals. There were four M&A transactions recorded in Energy Storage in Q1 2023, while Smart Grid had four M&A transactions as well.
In Smart Grid, the top five VC-funded companies in Q1 2023 included EO Charging, CHARGE+ZONE, Magenta Mobility, ConnectDER, and Indra. Debt and public market financing deals raised $777 million in Q1 2023. There were four M&A transactions in Smart Grid in Q1 2023, a higher number compared to two transactions in Q4 2022.
Overall, the report shows a mixed trend for corporate funding in the Energy Storage and Smart Grid sectors. While Energy Storage funding decreased YoY, Smart Grid funding increased YoY in Q1 2023. The report highlights that the market is continuously evolving, and the trend might change in the upcoming quarters.