Dive Summary:

• GigaOM looks at a lack of IPO's for smart grid tech companies, as well as acquisitions of similar companies that failed to yield big returns, and uses input from research firms to evaluate the state of VC funding for these companies.
• Analysis by Mercom Capital Group, a research firm that deemed the last three quarters of VC smart grid investment to be "extremely weak," cites "shifting business models" and the general inability of companies to understand customers' needs or address misconceptions.
• Pike Research even predicted that smart meter installations will decline over the next two years.

From the article:

Investments by venture capitalists into smart grid companies — or firms that are adding digital intelligence to the power grid — has remained “extremely weak” over at least the last three quarters, according to research firm the Mercom Capital Group. Investments by VCs into smart grid companies peaked in 2010, and have continued to decline throughout 2011 and 2012. This includes the venture arms of the corporates, like Siemens, ABB, and General Electric. ...