|By Marketwired .||
|January 14, 2013 02:34 PM EST||
AUSTIN, TX -- (Marketwire) -- 01/14/13 -- Global venture capital (VC) investments plunged nearly 50 percent to $992M (million) in 103 deals in 2012 compared to $1.9B (billion) raised in 108 deals the previous year. The 2012 total represents the lowest amount since 2007.
VC funding in Q4 2012 came in at $220M in 27 deals compared to just $72M in 14 deals in Q3. Twenty-five investors participated in the 27 deals in Q4, and no investor was involved in multiple deals. The leading VC deal this quarter was concentrating solar thermal company BrightSource Energy with $83.6M.
Figure: Solar VC Funding 2007-2012 (http://mercomcapital.com/assets/images/2012Q4PRImage1.jpg)
Mercom Capital Group published an 89 page report on funding and merger and acquisition (M&A) activity for the solar sector during 2012. The report provides detailed financial transactions, including active investors, examines VC investments broken down by type and technology, and also provides comprehensive information on solar M&A transactions, debt transactions, transaction details on announced large-scale project funding, and project M&A. This report also includes information on solar bankruptcies, downsizings and restructurings.
"The slowdown in VC funding can be attributed to the grim prospects for thin-film, concentrating solar and concentrating PV technologies," commented Raj Prabhu, managing partner of Mercom Capital Group. "With the drastic fall in crystalline-silicon PV prices over the last two years, most other technologies have struggled to compete."
Thin-film companies saw the largest amount of VC funding in 2012, although the total fell 47 percent to $314M compared to almost $600M in 2011. Within thin-film, the copper indium gallium (di) selenide (CIGS) sub-category received 85 percent, or $274M, of the total in 2012. Over the past three years, thin-film companies have received the most VC funding with almost $1.5B, of which, CIGS has received more than $1B. The solar sector's drop in VC investments is directly related to the struggles of thin-film companies, especially CIGS, noted Prabhu.
On the other hand, solar downstream companies, especially solar lease companies, have benefitted from low module prices. VCs invested $269M in 25 deals in solar downstream companies. The Top 5 VC funding deals in 2012 were BrightSource Energy, a CSP company, for $83.6M, SolarCity, a solar lease firm, for $81M, CIGS company Nanosolar for $70M, solar lease company Sunrun for $60M, and MiaSolé, a CIGS company, for $55M.
Figure: Solar Top 5 VC Deals in 2012 (http://mercomcapital.com/assets/images/2012Q4PRImage2.jpg)
"The diminished funding activity is not a true reflection of the health of the solar sector because the demand side of global solar installations has continued to grow," said Raj Prabhu. "Global solar installations look set to grow by around 10-12 percent this year."
More than 140 investors participated in 2012. The most active investors in terms of deal numbers were New Enterprise Associates with four, followed by Black Coral Capital, Firelake Capital Management, Kleiner Perkins Caufield & Byers, and SunPower, who participated in three deals each.
Corporate M&A activity in solar amounted to $6.7B in 52 transactions compared to $4B in 65 transactions in 2011. The two largest M&A transactions in 2012 were Eastman Chemical's acquisition of Solutia for $4.7B, and 3M Group's $860M purchase of Ceradyne. Other notable M&A transactions were Korean conglomerate Hanwha Group's acquisition of German PV manufacturer Q-Cells for $322M, and the $275M acquisition of Oerlikon Solar by Tokyo Electron.
"It was a buyer's market in 2012 -- acquirers were targeting distressed companies with the goal of buying technology or equipment on the cheap," commented Prabhu. "More than half the 52 M&A deals in 2012 involved solar manufacturers and equipment makers."
There were 12 corporate M&A transactions in Q4 2012 totaling $953M, with only six transaction amounts disclosed.
Figure: Solar VC Deals by Country 2012 (http://mercomcapital.com/assets/images/2012Q4PRImage3.jpg)
Mercom's report also includes announced large-scale project funding transactions. Active project investors in 2012 included The Development Bank of Southern Africa, HSH Nordbank, International Finance Corporation (IFC), Export Import Bank of the U.S., KfW Entwicklungsbank, and Union Bank. Some of the active acquirers of projects in 2012 were investment funds including the likes of The Carlyle Group, BNP Paribas Clean Energy Partners, ForVEI, and Capital Dynamics. Other active investor groups were project developers, utilities, independent power producers, and insurance companies.
The largest debt deal in 2012 was the $1.6B credit facility by China Development Bank, received by Sky Solar, a Chinese developer of solar projects. Loans, credit facilities and framework agreements announced by Chinese banks to Chinese solar companies have reached $52.6B since 2010.
Initial Public Offerings
In a sector devoid of successful exits, SolarCity's IPO was one of the few bright spots in 2012. SolarCity, a venture-funded company, raised about $95M in net proceeds. The other notable U.S. VC-backed solar IPO was Enphase Energy, whose debut at the end of March marked the first solar IPO in the United States since 2010.
To learn more about the report, visit: http://store.mercom.mercomcapital.com/?wpsc-product=solar-annual-q4-2012-report
About Mercom Capital Group
Mercom Capital Group, llc, is a global communications, research and consulting firm focused exclusively on clean energy and financial communications. Mercom's consulting division advises cleantech companies on new market entry, custom market intelligence and overall strategic decision making, delivering highly respected industry market intelligence reports, covering Solar Energy, Wind Energy and Smart Grid. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom's communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities, and strategic partners. Visit: http://www.mercomcapital.com. To get a copy of Mercom's market intelligence reports, visit: http://mercomcapital.com/market_intelligence.php.
Public Relations Contact:
Mercom Capital Group, llc
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 10, 2016 02:30 PM EST Reads: 419
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 10, 2016 02:30 PM EST Reads: 393
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
Feb. 10, 2016 01:15 PM EST
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
Feb. 10, 2016 12:45 PM EST
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Feb. 10, 2016 12:15 PM EST Reads: 424
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
Feb. 10, 2016 12:00 PM EST Reads: 619
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 10, 2016 11:00 AM EST Reads: 187
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Feb. 10, 2016 10:45 AM EST Reads: 247
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 10, 2016 10:45 AM EST Reads: 107
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Feb. 10, 2016 10:30 AM EST Reads: 218
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 10, 2016 09:00 AM EST Reads: 383
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 10, 2016 09:00 AM EST Reads: 184
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Feb. 10, 2016 08:00 AM EST
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 10, 2016 07:45 AM EST Reads: 438
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Feb. 10, 2016 07:00 AM EST
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 10, 2016 12:45 AM EST Reads: 202
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Feb. 10, 2016 12:00 AM EST Reads: 213
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Feb. 9, 2016 07:45 AM EST Reads: 107
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Feb. 6, 2016 03:30 PM EST Reads: 766
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Feb. 5, 2016 09:00 PM EST Reads: 827