Silver Spring Networks is a smart grid communications company that supplies wireless mesh equipment to utilities to enable two-way communication networks throughout the electric grid. It has raised over $207 million in funding since 2008. While revenue has grown in recent years, the company has experienced significant losses each year and anticipates continued losses as it expands its customer base. Key risks include reliance on a limited number of utility customers and long sales cycles for new utility contracts.
1. Case Study 10
Silver Spring Networks
Nov 30, 2011
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2. Company Overview
Name Silver Spring Networks
575 Broadway Street
Headquarters
Redwood City, CA, 94063
Year Founded 2002
Employees 519 employees (registered on linkedin as of Nov. 2011)
A Smart Grid communications company, supplying utilities
Business
with wireless mesh equipment to enable two-way
Sectors
communication networks throughout the electric grid.
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3. Funding History
Year Amount Participants in the Round
Foundation Capital
Series C Jun.2008 17.4M
Edison Electric Institute
Undistri- KPCB, Foundation Capital
Oct.2008 75M
buted JVB Properties, Northgate Capital
Series D Mac.2009 15M KPCB
Undistri- Google Ventures, Foundation Capital
Dec.2009 100M
buted KPCB, Northgate Capital
Undisti-
Jul.2011 NA GSV Capital
buted
Total - 207.5M -
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4. Focus Area
SSN
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5. Overview of the SSN’s Smart Energy Platform
For more information, please see the movie linked below.
http://www.youtube.com/watch?v=6-alYYaMG9A
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6. Reference: Various AMI Networks and Characteristics
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7. Scope of Services ~details of Smart Energy Platform
3rd Party
Utility Back-Office Systems
Software
Demand Side Management
Advanced Distribution Energy Demand Electric
Metering Automation Efficiency Response Vehecle
UtilityIQ UtilityIQ UtilityIQ
UtilityIQ
SSN Advanced
Power Monitor
CustomerIQ Demand Response Demand Response
Metering Manager Manager Manager
Applications UtilityIQ
Outrage Detection CustomerIQ
System
Acccess
Relay
Point
SSN
Critical Operations GridScape for
SSN Protector Distribution Services
Automation
Networking 3G Meter
Configurator
Platform
GridScape – Management and Security Software
UtilOS – Network Operating System
SSN
Hardware Communication Module Bridge Communication Module Communication Module Communication Module
3rd Party Capacitor Bank EV Supply
Hardware Controllers Equipment
Meter In-Home Display Thermostats
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9. Risk Factors
A history of losses to date, and anticipate continued losses and negative
operating cash flow for foreseeable future.
For concrete date, see p8.
Reliance on a limited number of utility customers for significant portion
of billings.
Sales cycles to utility customers can be long & unpredictable.
Utility generally has extensive budgeting, procurement, performance review and regulatory
approval processes that can take up to several years to complete.
Utility may require pilot programs to test new products before committing to a larger
deployment. These pilot programs may be lengthy and further delay the sales cycle with no
assurance that they will lead to a larger deployment or future sales.
Recognition of sales is deferred into future periods.
As of Sep.30, 2011, SSN has $409 million in deferred revenue.
9 ⓒ 2011 insprout Corporation.
*Source: EnerNOC 2010 Annual Report All rights reserved
11. TO BE CONTINUED
We will analyze in detail various EMS technologies and
companies in those domains
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