Coda Automotive Raises Additional $76 Million, Can Breathe a Bit Easier
During the 2010 Los Angeles Auto Show last November, I had chance to shoot some video with Coda's new interim CEO, Steven "Mac" Heller, and talk a bit of shop about the changes the company's been going through recently. At the time, Coda was in the midst of a series D round of funding and was looking to raise $125 million dollars in private investment as well as "waiting by the phone" for as much as $500 million in federal stimulus loans.
One of our topics during the interview was how much Coda's continued existence hinged on any incoming sources of funding. Heller kind of stepped around the topic by saying, "New companies live on financing—we're entrepreneurs, this is our money. We're very careful about it, but we know that new products take love and passion and a little bit of cash." Even so, you could tell that the funding was a make it or break it endeavor for the scrappy little EV company trying to change the world.
Although there's still no word on the $500 million federal loan, today Coda announced that they raised $76 million in private investment from multiple sources including Harbinger Capital Partners and Riverstone Holdings, as well as more investment from Heller himself, AERIS Capital and Angeleno Group. $76 million may seem like a far cry from $125 million, but as Matt Sloustcher, Coda's Public Relations Manager said in an email to PluginCars.com, "This was only the first close of our series D. We were targeting $75 million for the first close, so we actually exceeded our target. The round is still open and we plan to raise more funds towards our target of $125 million." Even though it's only the first half of their goal, the $76 million injects some new confidence into the company at a time when they really need it.
"The caliber of our investors speaks volumes about our business model and the opportunity that exists within the electric vehicle and battery industry," said Heller in a statement. "I strongly believe that when one thinks about the opportunities presented by the global power battery industry, the global electric vehicle industry and CODA's proven ability to partner with leading companies in both China and the United States, one has to believe that what we are doing today at CODA is one of the most exciting businesses in the world. The consummation of this Series D funding and the backing of Harbinger and Riverstone represents a strong validation of this view."
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