Corporate funding for energy storage companies reached $17.6 billion across 83 deals in the first nine months of 2024, marking a 15% increase year-over-year, according to a report from Mercom Capital Group. However, venture capital (VC) funding in the sector saw a sharp 69 % decline, amounting to $2.7 billion in 61 deals, down from $8.6 billion across 68 deals in 2023. Debt and public market financing for energy storage companies surged by 125 %, hitting $15 billion in 22 deals, a significant rise from $6.6 billion in 2023. "Corporate funding trends reflect a clear shift towards debt and public market financing over venture capital in the energy storage space," the report noted. The largest VC funding rounds in energy storage in 2024 included Sila Nanotechnologies, raising $375 million, and EnerVenue Holdings with $308 million. Other top deals were Natron Energy at $189 million, Ascend Elements with $162 million and Antora Energy at $150 million. In merger and acquisition (M&A) activity, 18 transactions were announced in the energy storage sector, up from 11 last year. Project M&A activity held steady, with 22 transactions each in 2023 and 2024. In contrast, the Smart Grid sector saw corporate funding drop 33 %, totalling $2 billion across 53 deals, down from $3 billion in 48 deals last year. Smart Grid VC funding rose by 13 %, reaching $1.4 billion across 43 deals. Leading VC deals included Electra’s $330 million raise, Powerdot’s $108 million, and FLO’s $100 million. Debt and public market financing for Smart Grid technology fell sharply to $568 million in 10 deals, compared to $1.7 billion across 11 deals in 2023. M&A transactions in the Smart Grid sector also saw a slight decline, with seven deals in 2024 compared to eight last year.
