Electric vehicle infrastructure company Better Place said it had raised US$350m in fresh equity as part of a second round of financing.
Better Place, founded by former SAP executive Shai Agassi, said its target was to begin full commercial operations at the end of 2011 when partner Renault plans to offer the first car with a replaceable battery.
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Better Place’s role is to provide a network of battery-swapping stations and Agassi estimated that his company and Renault had a lead over all other alternative energy mobility concepts of at least two years.
Nine investors participated in the second round of funding, including HSBC, Morgan Stanley Investment Management and Lazard Asset Management, the company said in a statement on Monday.
“This is one of the largest investments made yet in the ‘clean tech’ sector. The value of Better Place is now estimated at $1.25bn,” it said.
HSBC invested US$125m of its own funds in the company, giving it an equity stake of roughly 10% in Better Place.
“We are absolutely convinced that the paradigm change from cars with internal combustion engines to electric vehicles offers great possibilities for growth both in the auto industry as well as for utilities,” said Stuart Gulliver, HSBC executive director and head of its global banking and markets business.
