Alliander, a Netherlands-based energy network company, has joined its former parent in backing Locamation, a local developer and supplier of smart grid technology.
Locamation raised €5m ($7m) in its second financing round with Alliander joining existing investors Yellow&Blue Investment Management and the portfolio company’s management, both of which have increased their stake in this round.
Last year, Yellow&Blue transferred one of its managers, Pascal Bleeker, to Locamation as chief operations officer.
Dutch utility Nuon had founded Yellow&Blue as an independent venture capital firm with a €40m fund in 2008 before investing "millions of euros" in Locamation in its first deal in January 2009. Alliander subsequently spun out of Nuon.
Albert Fischer, managing director of Yellow&Blue, said: "Our first investment enabled Locamation to launch their smart grid technology into the market. We are very pleased to see that a lead customer is now confirming the potential for their products."
He added by email: "Alliander is a co-investor in Locamation, but is not an LP [limited partner – investor] in our fund. Indeed they are formerly Nuon, which is our LP.
"I gather [Alliander’s] investment was sparked by the fact that they are not an LP, rather than vice versa. So in that sense, it is perfectly ok. And I guess that Alliander is comfortable sitting alongside with us, as we observe the usual "shareholder interests" primarily and Alliander brings extra industry expertise to the table – and extra credibility – which is beneficial for Locamation."
Peter Molengraaf, chief executive of Alliander, said: " Energy production and distribution will change substantially over the coming decades and this means that changes need to be made within the existing energy infrastructure. Locamation’s technology can play an important role in increasing grid efficiency and intelligence to meet these new needs. We are firm believers in the Company’s network solutions and recently decided to digitise all the substations in the Liander grid with SASensor platforms, which will take seven years and requires an investment of €15m per annum."