The smart grid sector received $503 million in 95 deals from VCs in 2011. That is a 6.3% increase in deal activity from 2010, but a 14.5% drop in funding. As you can see below, deal volume has steadily been on the rise over the last five years although we’re seeing a decline in VC deal activity to smart grid in 2012 so far.
However, funding has not experienced similar consistent levels of growth, indicating that the increase in deal activity may attributed to an influx of smaller deals. Indeed, median deal size in smart grid has decreased every year from 2007 to 2011, and the median deal size projects to drop again in 2012.
For a free report on the Smart Grid sector’s financing and M&A trends, visit Green Capital Empire to request it.