Locus Energy Acquisition Lessons Learned

Just a few months ago we celebrated two exits from the PeakChange portfolio.  Now we are delighted to report another exit: Locus Energy. In mid-September, Locus was acquired by Genscape .

Locus Energy provides a solar monitoring and data analytics platform for the solar photovoltaic (PV) market. Their cloud-based software aggregates, organizes, and analyzes performance data from multiple sources to manage and identify causes of a solar system’s failure to meet performance expectations. Locus has installed over 75,000 systems in the North American residential, commercial and utility sectors.

Genscape is a global leader in all aspects of energy monitoring data and intelligence. Since the solar PV market is growing rapidly, adding Locus' solar PV monitoring system to Genscape's existing product portfolio will improve technical support and add broader value to customers and users.

The timing for this business combination is perfect – Locus and Genscape have launched a rapid Migration-Without-Interruption Service, which transforms the ease with which current users of Genscape systems can migrate to Locus. Furthermore, Locus expertise will enhance the ability of Genscape to meet new market demands. To learn more about the acquisition… 

Two of the three exits from the PeakChange portfolio have been Investor Circle companies. Through a succession of exits from its '09 and '11 Funds, Patient Capital Collaborative (PCC) has been learning more and more about how to support companies most effectively as they mature. 

Jim first learned about Locus Energy through his involvement with Investor's Circle Philadelphia that has a history of presenting great investment opportunities to investors. As a result, Jim made both a direct investment and an investment through PCC '11 (PCC) (link) at the same time. PCC invested in a follow up round, which turned out to provide a better ROI than Jim’s direct investment. In this case, investors that took advantage of follow on bridge had significantly better returns. This is an important lesson learned in investment philosophy, as Angels typically view the best strategy as making many seed investments with few follow on investments. As Jim did with UClass and again with Locus, he made more money in the bridge round than in the initial investment. By making both a direct and indirect investment in Locus Energy, PeakChange can continue to test our investing approach, while adding another successful exit to its roster.