From 2004 to 2011, the amount of capital invested each year in the space increased, jumping from $9 million to $540 million in that span. Then there was a sudden crash. Venture capital invested in the energy storage industry in 2012 dropped by 77% to $125 million from the previous year. The number of deals completed in the space decreased significantly as well, reaching a five-year low (21).
The industry quickly bounced back, however, with capital invested increasing by 60% (to $200 million) from 2012 to 2013. With nearly $160 million of VC cash already invested in energy storage companies in 2014, the industry is easily on pace to continue its trek back upward. The current year's strong pace has been fueled by companies like Ambri, Ioxus, Aquion Energy and Primus Power, which have all landed financing rounds of $20 million or larger in 2014.