Stem closes funding round with committment from Exelon finance arm

Dive Brief:

Stem Inc. has closed out a $27 million finance round with major commitments from two industry leaders, Constellation Technology Ventures and Total Energy Venture. Constellation Technology Ventures is the venture finance arm of Exelon, the fifth-largest utility in the nation.
The company secured a $12 million investment from Constellation and Total and said the capital validates Stem's solutions for businesses and utilities.
Energy storage is a rapidly growing technology and Stem has now raised in excess of $40 million to expand its business, Bloomberg reports.

Dive Insight:

Advanced energy storage and analytics leader Stem Inc. has closed out a $27 million Series B equity financing round with investments from Constellation Technology Ventures and Total Energy Ventures totaling $12 million, Bloomberg reports.

Investment from Constellation Technology Ventures, the venture capital arm of Exelon Corporation, "validates Stem’s momentum as an energy management solution for both businesses and utilities," the company said.

“Energy storage is becoming an increasingly important energy and demand management solution for customers and utilities,” said Michael Smith, Constellation vice president and head of Constellation Technology Ventures. “We view Stem among the leaders in this market and look forward to taking an active role in facilitating Stem’s nationwide expansion.”

Total Energy Ventures, the venture capital arm of energy company Total, will help Stem expand its reach with channel partners and several international opportunities.

“Total is always looking for ways to optimize its operations, and smart energy solutions like Stem’s play an important role in strengthening the service we offer our customers,” says Bernard Clément, senior vice president of business and operations of Total New Energies. “We believe Stem’s combined storage and software system adds considerable value to our offering and that of our affiliates.”

In 2013 Stem closed a $15 million Series B financing round where Iberdrola and GE Ventures joined Series A investor Angeleno Group in committing financing for the round.

“Energy companies like Exelon and Total as investors will further Stem’s momentum as a leader in energy optimization for commercial and industrial customers,” said John Carrington, CEO of Stem. “We’re pleased that this latest round of funding will enable additional value for our C&I customers and utilities in both existing and emerging markets.”