Better Place Electric Car Business Model Receives $350M Vote of Confidence
London -- Today, HSBC joined a growing list of investors in a Series B round of financing worth $350 million dollars, making this the one of largest clean technology investments to date and valuing Better Place at $1.25 billion. The funds will be used to continue the development and installation of Better Place charging systems and robotic battery exchange stations in both Israel and Denmark.
In explaining the reason for its investment in Better Place, one which grants HSBC a 10% stake in the venture, HSBC Head of Global Capital Financing Kevin Adeson states that his firm has spent a year studying Better Place's business model, one similar to the cellular telephone industry where its electric car customers are charged based on the miles they travel. That due diligence, including talking with a number of automotive OEMs including Renault, convinces HSBC management that the model is sound and scalable. The French carmaker will provide Better Place with an initial order of 100,000 electric cars, including the Fluence unveiled at the Frankfurt, Germany auto show in 2009.
Adeson listed five reason why HSBC believes their investment in Better Place is sound:
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