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HSBC Leads $350 Million Investment in Better Place, Scaling Up Electric Vehicle Charging Infrastructure

Strategic Insights

— 1 min read

HSBC has led a consortium of investors in a $350 million equity financing round in Better Place, a Palo Alto-based start-up operator of electric car charging stations in the US. This investment marks one of the largest clean-tech investments in history, valuing Better Place at $1.25 billion. The financing round includes new investors HSBC, Morgan Stanley Investment Management, and Lazard Asset Management, joining existing Series A investors like Israel Corp, VantagePoint Venture Partners, and Ofer Hi-Tech Holdings. Better Place's CEO, Shai Agassi, stated that the investment commitment from HSBC and other new investors enables the company to scale up globally and execute its plan.

Key Takeaways:

  • Better Place has secured $350 million in new equity financing, led by HSBC, with a total valuation of $1.25 billion.
  • The financing round brings in new investors HSBC, Morgan Stanley Investment Management, and Lazard Asset Management, in addition to existing Series A investors.
  • Shai Agassi, Better Place's CEO, emphasizes the company's ability to scale up globally and execute its plan with the new investment commitment.
  • Better Place operates in Israel, Denmark, Australia, and has pilot projects in Hawaii, Denmark, Japan, and Australia.
  • The company has signed a memorandum of understanding with Renault-Nissan to build the world's first 'electric recharge grid operator' (ERGO) model for clean transportation in Israel.
  • HSBC holds an equity stake of about 10% in Better Place, one of the largest financial investments of its kind by HSBC.
  • Stuart Gulliver, HSBC's executive director, believes the switch to electric vehicles will create future growth opportunities in the auto and utility industries.
  • Better Place intends to expand its geographic footprint, particularly in Europe and Asia, and meet its milestones for Israel and Denmark launches by the end of 2011.
  • The company will also continue to execute its strategy of early deployment projects in Australia and select North American markets.

Statistics:

  • $350 million: The amount of new equity financing secured by Better Place.
  • $1.25 billion: The valuation of Better Place after the financing round.
  • 10%: The equity stake held by HSBC in Better Place.
  • 2011: The year by which Better Place plans to meet its deadlines for Israel and Denmark launches.
  • January 2008: The month and year when Better Place signed a memorandum of understanding with Renault-Nissan.

Sources:

  • "HSBC leads $350m round for Better Place" by Domain-b.com, distributed by Contify.com, (2009)

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