Fisker Keeps Accumulating Venture Capital

Fisker Automotive is now being called one of the most heavily venture capital backed companies ever as another $100 million recently added brought its total to almost $1.2 billion.

Despite such news presently circulating of a minor recall, and a rocky review from Consumer Reports which spent $107,850 for a Karma then gave it a failing grade, we keep hearing of others spending far more to invest in this green energy start-up.

Former Chevy Volt Line Director, and new CEO Tony Posawatz was reported as saying the latest venture funding is earmarked for full expansion into the Middle East and China, as well as to get the Atlantic sedan into production.

“The Karma is already a testament to U.S. automotive innovation and advanced technology, and we intend to announce our production plans for the Atlantic and a timeline by December of this year,” Posawatz said.

The actual number of Karmas delivered globally has been speculated to be in excess of 2,400, but Fisker has been known to play its hand close to its chest, and when asked a couple weeks ago, merely told us “we’re still only saying it is over 1,000.”

A more recent report by SustainableBusiness.com said deliveries in the U.S. and Europe are now nearly 1,500, and this too may be less than actual.

But despite a modest start, several setbacks including loss of two-thirds of a $529 million U.S. Department of Energy (DOE) Advanced Technology Manufacturing loan, Fisker keeps finding willing investors.

We know it is playing the public relation game as carefully as it can, and perceives it has many detractors waiting to pounce, but its business plan presentation beyond the elevator speech it gives the public must be pretty sound, or one would think.

We know also the market and political climate affecting potential receptiveness to its Karma luxury plug-in hybrid is entirely different in the Middle East and China, than in the U.S.

Of the $1.2 billion, half has been raised in the past 18 months, according to SustainableBusiness.com, and since Karmas began shipping in December 2011, it has raised one-quarter of its total venture funding.

In short, in the eyes of the public – given what info they may come across – Fisker’s image is very much in question, but behind the scenes where greater disclosure is demanded by venture capitalists, the investment in this company is still going strong.


  • john iv

    “. . . minor recall . . .” ?? They have had two major recalls and the car is only a year old. Please venture captialist invest in the other companies who are actually putting cars on the road that don’t catch fire.

  • Roy_H

    If you believe Fisker will survive as a company, then you might think this is a good time to buy stock at a low price.

    If you have already invested heavily in Fisker, then there would be a lot of incentive to see the company succeed. Buying more stock would certainly help them.

    So the question is, has almost all the new stock been purchased by previous Fisker stock owners or not?

  • Benjamin

    @IV – Recall 1 was a problem with A123 System batteries. These still are great chemistry. Fisker thought it was sourcing the best, but got a bad batch. Not its fault. Recall 2 was a fan problem that could be a fire risk. Not a fundamental design flaw. The owner of that car bought another one and invested his and his wife’s own money back into Fisker as one of the VCs who are signing on.

    The story says Fisker knows it has detractors. It also says the public only knows what it knows. Your repeating the headlines and then slurring about fire sounds a lot like the Volt haters.

    You know how many ICE cars catch fire every year? How many majors have had recalls? You want to scrap this environmentally oriented company why again? Next up is Atlantic, then lower priced cars for the rest of us.

    The article already basically had your number covered, but you had to go and offer your (not worth) two cents anyway, didn’t you? Looks like you prove its point more than you debunked a thing.