EMC steps in to fund Silver Spring Networks

Cleaner Power, Smarter Grids: David Crane, NRG Energy, and Eric Dresselhuys, Silver Spring Networks at Green:Net 2011Of the $30 million that I reported that smart grid company Silver Spring Networks is raising, $24 million of that has come from storage and IT giant EMC. And beyond the investment, EMC and Silver Spring Networks plan to work on analyzing utility data to make the grid more secure and run more smoothly.

As I wrote on Wednesday, Silver Spring Networks has been planning a potential $150 million IPO, but the public markets haven’t been all that friendly this year. The third quarter of 2011 was one of the weakest IPO markets since the end of 2009, according to a report released by the National Venture Capital Association (NVCA). In August it seemed like the IPO window slammed shut due to macroeconomic conditions like the European crisis and has remained difficult since then.

Silver Spring Networks has brought in revenues of $175.72 million for the nine months ended September 30, 2011, with a $76.20 million net loss for the same period. In 2010 Silver Spring generated revenues of $70.22 million, $3.30 million in 2009 and just $58,000 in 2008. To date Silver Spring Networks has contracts for 17 million connected smart grid devices and has utility customers like Pepco Holdings, Constellation Energy, Florida Power & Light and PG&E.