In terms of investment dollars, corporate M&A, project funding and third-party capital, Q1 2014 was one of the strongest quarters on record.
Renewable Energy World Editors
April 08, 2014
New Hampshire, USA — Highlighting once again that one of the key stories for renewable energy in 2014 will be renewable energy finance, Q1 2014 shows high growth for investments in solar. Total global corporate funding in the solar sector, including venture capital (VC), private equity (PE), debt financing, and other equity financings raised by public companies, came in at $7 billion, compared to $5 billion in Q4 2013, according to a report just released by Mercom Capital Group.
The report dives into venture capital funding, project funding, corporate mergers and acquisitions and third-party lease funding. All sectors showed an increase in the number of dollars invested and/or number of transactions showing just how favorably investors view solar.
Global VC funding, PE and corporate VC in Q1 2014 was almost double what it was in Q1 2013, totaling $251 million in 26 deals, up from $87 million in 24 deals in Q4 2013, mostly due to one large deal. Solar downstream companies attracted most of the VC funding this quarter, with $182 million in 13 deals.
Raj Prabhu, CEO of Mercom Capital Group, commented, “It was a robust quarter for solar as financing activity surged in almost all areas. The big story continues to be strong capital markets. VC funding was up with several funding deals involving investment “platforms,” while third-party residential/commercial funds continue to raise record amounts.”
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