Stem, a US-based energy storage system provider that counts a host of corporates as investors, secured $80m yesterday for the first close of its series D round.
Growth equity firm Activate Capital led the tranche, investing together with Singaporean government-owned investment firm Temasek and Ontario Teachers’ Pension Plan, which took part the day after Canada Pension Plan Investment Board bought a $144m stake in renewables developer ReNew Power.
Stem develops and produces artificial intelligence-equipped, battery-based energy storage systems that help customers manage their energy use more efficiently. As of 2017 it had systems with an average size of more than 500 kWh operating across more than 1,100 sites.
The series D capital took Stem’s overall debt and equity financing to approximately $193m since it was founded in 2009. It follows a $15m investment by growth equity firm Mithril Capital Management in mid-2016.
GE Ventures and Total Energy Ventures, the corporate venturing arms of industrial equipment producer General Electric and oil and gas supplier Total, joined energy utility Iberdrola, power producer Exelon and Angeleno Group to invest $27m in Stem in a round that closed in 2015.
Stem added $45m later the same year from investors including diversified conglomerate Mitsui and RWE Supply & Trading, a subsidiary of energy utility RWE.
The company had also received $350m in project financing from investors including investment firm Starwood Energy Group Global as of 2016.
Stem CEO John Carrington said: “Ontario Teachers’ and Temasek have combined portfolios in excess of $300bn across the global commercial, industrial and real estate landscape.
“In addition, these firms bring deep relationships, a long history of investment in innovative platforms and credibility with global financial institutions. These elements will be critical in advancing our next stage of growth as we continue to lead innovation in the distributed energy industry.”
– Photo courtesy of Stem, Inc.