GE’s Tendril Investment Means Additional Access to Smart Grid Technology

By Jacob Grose

 

Earlier this fall GE Energy Financial Services made a new equity investment in Tendril Networks, maker of software products that connect utilities and smart devices in homes (see the February 11, 2009 LRPJ). This investment follows closely after Tendril's $30 million Series C financing that closed in June 2009.

.

While the companies did not disclose the amount of GE's investment, it's likely to be significant. The two companies previously had a partnership to integrate the Tendril Residential energy management ecosystem (the TREE) with GE's home appliances.

 

For Tendril, this deal not only gives it a strong corporate investor, but also a potential client to which to sell its products. For GE, a stake in Tendril provides an entry into a communication technology platform that is much needed for GE to compete with the likes of IBM and Cisco Systems, companies that already have their own communications software technologies for the Smart Grid. GE's only other Smart Grid venture investment right now is in Grid Net, a developer of policy-based network management software (see the June 10, 2009 LRPJ). But expect it to continue its venture investments in this area.

 

Smart Grid start-ups that have yet to forge relationships with a large corporate partner may look to GE as a potential investor or acquirer.

 

Jacob Grose is an analyst for Lux Research, which provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on Lux Research to help them make informed strategic decisions. Through their unique research approach focused on primary research and their extensive global network, they deliver insight, connections and competitive advantage to their clients. For more information, visit the Lux Research site or contact Carole Jacques to become a Lux Research client.

 

   Lux Research home page

   Smart Grid Vendors channel on SGN

   Behind-the-Scenes Look at GE’s Smart Grid Strategy

   Wireless Home Sensor Network Finally Possible