Venture capital (VC) funding for the smart grid sector in 2011 was “anemic,” according to the annual and fourth quarter merger and acquisition (M&A) and funding activity for the smart grid sector for 2011 released Mercom Capital Group, LLC. The average VC funding round dropped by 50 percent in 2011 to $7.5 million compared to almost $15 million in 2010. VC funding in 2011 brought $377 million in 50 deals (24 disclosed) compared to $769M in 51 deals in 2010 (27 disclosed).
Mercom blames the drop in VC funding on “current economic conditions and uncertainty along with a lack of clear direction in the Smart Grid sector is plainly evident based on the depressed funding activity so far this year.”
The M&A activity in the third quarter of 2011 was also “very weak,” according to Mercom, with $30 million in five deals. In the second quarter of 2011 there were nine deals which resulted in $4.3 billion in M&A transactions. Only four acquisition transactions were disclosed out of 30 total transactions, following the same pattern as in 2010 when only four transactions out of 40 were disclosed.
The top VC deals in 2011 were:
Photo credits: Flickr user, viagallery
Gina-Marie is a freelance writer and journalist armed with a degree in journalism, and a passion for social justice, including the environment and sustainability. She writes for various websites, and has made the 75+ Environmentalists to Follow list by Mashable.com.