Over the course of the last 5 years, we have tracked a total of 167 funding announcements relating to 106 building performance software providers. The investments range from angel investment to series E financing. Funding rounds have ranged in value from under $1 million to $150 million.
The Chart below, taken from our report The Market for Building Performance Software 2016 to 2020 shows that building performance software companies have attracted a total of $2,385 million from 2010 to May 2016. Software in all its guises is one of the most attractive businesses to invest in and business performance software is no exception having grown by a CAGR of 35% over the last five years.
Of the 167 funding announcements analysed, almost 36% related to Environmental Energy Management Software (EEMS) and over 25% related to Smart Building / Smart Grid interface software, confirming the interest of the investment community in building energy software overall.
As with M&A, the most active year for funding was 2015, with the highest level of investment at over $792 million. We anticipate that this high level of investment was exceeded in 2016, with over $645 million already committed up to the end of May.
The most active investors by the number of funding rounds completed can be seen in the Table below.
Schneider Electric is the most active investor, with 7 different funding rounds, according to our records. These were mainly undertaken by Aster Capital, a venture capital fund sponsored by Schneider Electric, Alstom, Solvay and the European Investment Fund.
It is interesting to note that 3 of the 10 most active investors are the venture capital units of major conglomerates in the building automation and energy management sectors.
Overall, funding from venture capitalists and private equity investors in our database has originated from predominantly US based companies, as indeed are the companies they are supporting, with around 67% of EEMS providers on our list headquartered in North America. However, investments have also come from the UK, Germany, France and Japan.
This article is based on our recent report – The Market for Building Performance Software 2016 to 2020.