Stem, Inc. Closes $80 Million Growth Equity Financing Round, Achieves Portfolio of 200 MWh and Executes on Second International Market

January 23, 2018

MILLBRAE, Calif.–(BUSINESS WIRE)–Stem,
Inc., the global leader in artificial intelligence (AI)-powered
energy storage, today announced the first close of its Series D
financing with an $80 million investment from a group of leading
technology investors. In 2017, the company had over 1,100 sites
operational or in construction with an average system size of 500 kWh,
having commissioned a new energy storage system on average every two
days.

The Series D was led by Activate Capital, a growth equity firm
exclusively focused on companies providing innovative products and
solutions across the sustainable energy and industrial technology
markets.

“Activate invests in fast growing companies with exceptional management
teams that are transforming industries. Stem is clearly the leader in
the energy storage market, offering a powerful AI and technology
platform that creates significant value to those inside their network,”
said Activate Capital managing director, Anup Jacob.

Activate Capital was joined by Ontario Teachers’ Pension Plan (“Ontario
Teachers’”), Canada's largest single-profession pension plan, and
Temasek, an investment company headquartered in Singapore. “Ontario
Teachers’ and Temasek have combined portfolios in excess of $300B across
the global commercial, industrial and real estate landscape. In
addition, these firms bring deep relationships, a long history of
investment in innovative platforms, and credibility with global
financial institutions. These elements will be critical in advancing our
next stage of growth as we continue to lead innovation in the
distributed energy industry,” said John Carrington, CEO of Stem, Inc.

Stem has had a strong year in Ontario, Canada, and looks to continue its
momentum with its Global Adjustment offering–specifically designed for
Ontario–which is ideal for large manufacturing plants and other
industrial operations that seek improved control over energy costs.

Ontario Teachers’ Pension Plan senior managing director Andrew Claerhout
commented, “We are thrilled to have the opportunity to support the
continued growth of an innovative company with a proven product like
Stem. Ontario Teachers’ foresees that more investment is needed in the
transition to a low carbon electricity system and expects that batteries
will play a key role in the transition and in making the electric grid
more sustainable. Ontario Teachers’ will support Stem’s growth by
leveraging our strategic partnerships globally.”

The equity raise caps a record 2017 for Stem’s growth in system count,
new market expansion, and partnerships, with more announcements to come
in 2018. Stem now has hundreds of systems under management across five
states and three countries (US, Japan, and Canada). These systems form
networks for capacity and grid services with eight utilities across
North America and Tokyo Electric Power in Japan. Of the company’s over
1,100 sites, 330 locations are standalone PowerMonitor controls and
software for utility use. These sites provide utility customers with
additional grid edge visibility and control in areas with high rooftop
solar penetration.

In 2017, Stem also announced innovative bundled customer service
offerings with CPower, Constellation, and Sunpower for intelligent
storage, traditional demand response, and solar+storage. Also in 2017,
Stem’s platform, AthenaTM, the first artificial intelligence
for customer-sited energy storage, was called on over 600 times to
dispatch in day-ahead and real-time (five-minute) responses to the
California wholesale market, helping alleviate heat wave-induced grid
stress through its innovative Virtual Power Plant software technology.

“We are excited to announce that international investors like Activate
Capital, Ontario Teachers’, and Temasek are joining us in transforming
the way energy is distributed and consumed,” said John Carrington, CEO
of Stem, Inc. “Our investors recognize Stem’s innovative value in energy
superintelligenceTM and real-time energy optimization that
benefits the customer, the utility, and the grid.”

About Stem, Inc.

Stem creates innovative technology services that transform the way
energy is distributed and consumed. AthenaTM by Stem is the
first AI for energy storage and virtual power plants. It optimizes the
timing of energy use and facilitates consumers’ participation in energy
markets, yielding economic and societal benefits while decarbonizing the
grid. The company’s mission is to build and operate the smartest and
largest digitally-connected energy storage network for our
customers. Headquartered in Millbrae, California, Stem is directly
funded by a consortium of leading investors including Activate Capital,
Angeleno Group, Constellation Technology Ventures, Iberdrola
(Inversiones Financieras Perseo), GE Ventures, Mithril Capital
Management, Mitsui & Co. LTD., Ontario Teachers’ Pension Plan, RWE
Supply & Trading, Temasek, and Total Energy Ventures. Visit www.stem.com
for more information.

About Activate Capital

Activate Capital was founded to be the leading growth equity partner to
companies providing innovative solutions across the energy,
transportation and industrial technology markets. The firm partners with
management teams in high growth companies and provides them with the
necessary capital, resources and support to achieve their highest
potential to build meaningful scale and impact. Together the Activate
Principals have successfully invested over $1 billion in its target
sectors, resulting in 11 IPOs and 19 exits through acquisition.

About Ontario Teachers' Pension Plan

The Ontario Teachers' Pension Plan is Canada's largest single-profession
pension plan, with C$180.5 billion in net assets at June 30, 2017. It
holds a diverse global portfolio of assets, approximately 80% of which
is managed in-house, and has earned an annualized gross rate of return
of 10.1% since the Plan's founding in 1990. Ontario Teachers' is an
independent organization headquartered in Toronto. Its Asia-Pacific
region office is located in Hong Kong and its Europe, Middle East &
Africa region office is in London. The defined-benefit plan, which is
fully funded, invests and administers the pensions of the province of
Ontario's 318,000 active and retired teachers.

About Temasek

Incorporated in 1974, Temasek is an investment company headquartered in
Singapore. Supported by 11 offices internationally, Temasek owns a
US$197 billion portfolio as of 31 March 2017, mainly in Singapore and
the rest of Asia. Our portfolio covers a broad spectrum of industries:
financial services; telecommunications, media & technology;
transportation & industrials; consumer & real estate; life sciences &
agriculture; as well as energy & resources. Our investment activities
are guided by four investment themes and the long term trends they
represent: Transforming Economies; Growing Middle Income Populations;
Deepening Comparative Advantages; and Emerging Champions. For more
information on Temasek, please visit www.temasek.com.sg.

Contacts

Antenna Group for Stem, Inc.
Josh Garrett, 646-357-3445
[email protected]

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