As reported in August, electric car maker Fisker has been raising $150 million in a new round, and according to a filing on Wednesday has now managed to close around $100 million of that round. The funding is meant to help Fisker develop its next car, and to eventually breakeven, and the round means Fisker has raised a jaw-dropping $1.2 billion in funds.
The fund raising was managed by investment firm Advanced Equities, and Advanced Equities made close to $5.5 million in sales compensation off of the round, according to the filing. Advanced Equities, works with a lot of high net individuals, and has been raising money for quite a few capital-intensive greentech firms, including fuel cell maker Bloom Energy, green construction company Serious Energy and solar startup SolFocus. Fisker’s venture investors include Kleiner Perkins, NEA and others.
Advanced Equities last week was charged by the Security and Exchange Commission with misleading investors around a fund raise for a Valley alternative energy company back in 2009 and 2010 (reportedly Bloom Energy). Advanced Equities agreed to pay $1 million to settle the charges, without admitting guilt, and Advanced Equities co-founder Dwight Badger is no longer with the company.
The more money Fisker raises, the more some of these net worth individuals and investors will likely be diluted, and I’ve heard a rumor that the fund raising was at a significant down round. Chicago’s prepaid college saving’s fund, the Illinois Student Assistance Commission, said last week that it had invested $10 million into Fisker, and that it expects to lose more than half of that after the close of the fund raising. ISAC’s investment was valued at $14 million but is expected to lose about two-thirds of that value once Fisker finishes raising new equity, said ISAC.
Pensions and Investments, the media site that published the news of ISAC’s loss, writes: “ISAC spokesman John Samuels said “the fund backing Fisker had given ISAC the option of increasing its investment. But the agency opted not to, since it changed its investment policy in June to forbid future direct investments or co-investments in private companies, believing they are not appropriate for a public fund like College Illinois.”
Along with the fund raise, Fisker also had some bad news this week with a harshly negative review by Consumer Reports.