2013-04-22 16:17:52

VC Firms Going To Take A Billion Dollar Shower On Fisker

PrivCo, a private corporate intelligence firm, has presented a 20+ page folder on Fisker’s seemingly strong ability to fundraise for itself, while failing to do a good job of creating vehicles. With Fisker balancing on the edge of bankruptcy, the results are staggering; with only under 2000 products sold, Fisker burned through approximately $1.3 billion in venture capital, taxpayer-funded loans and private investor funds.

According to PrivCo’s estimates, that reaches $660,000 per Karma sold. PrivCo has planned an extensive, detailed timeline of Fisker’s actions, and focused key information connected to corporate developments, government loan proceedings and the different ways that Fisker violated their agreements with the government. What materializes is astonishing image of how Fisker was able to raise huge sums of money merely on the promise of providing a “eco” model for the very wealthy few, without constructing anything solid or ready for the marketplace. According to the firm, the government

“…applied lax underwriting standards in granting the DOE Loan and Credit Agreement to Fisker, which was by any commercial standard obviously a financially incompetent borrower for the loan.”