Smart grid VC funding has been “extremely weak”

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Silver Spring Networks has investment from Foundation Capital, Kleiner Perkins, W.R. Holdings, and more recently EMC and Hitachi. Many of the small smart grid deals are not being disclosed because the investors don’t want to reveal the low valuation of the company. Pike Research has predicted that installations of smart meters in the U.S. will actually sharply decline over the next two years, before they pick back up. One of the reasons is that utilities in California will have finished many of the smart meter installation projects that they started a few years ago. Another reason for the decline is that the Department of Energy gave smart meters a temporary injection a couple years ago.

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