As its loan with the federal government remains on hold, Fisker Automotive is scrambling to raise capital in other ways–through equity sold to individuals that are getting some freebies to sweeten the deal, and through a private debt deal that is being led by the Royal Bank of Canada, VentureWire has learned.
If the loan falls through, it would have to work to repay the proceeds it has received that were earmarked for development of the former Delaware GM plant.
Even as it’s trying to raise $87 million in new equity marketed to investors by brokerage firm Advanced Equities, along with the debt deal, the company is continuing to sell its first car, the luxury plug-in Karma. “We have 1,700 cars sold now,” said Ray Lane, managing partner at Kleiner Perkins Caufield & Byers and director on Fisker’s board.In the first quarter, the company said it drew in $100 million in revenue. “I’m looking at about $400 million in revenue this year. That would make it the fastest growing start-up ever,” Lane said.
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