Fisker and Karma raise millions of dollars following Tesla’s wave of optimism

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Fisker Inc. and Karma Automotive, two electric vehicle startups with a long common history, each announced this week that they have raised millions of dollars. Fisker took $ 50 million in fresh capital from “king of hedge funds” Louis Bacon and Karma Automotive raised $ 100 million from undisclosed external investors.

The money comes at a time when there seems to be renewed interest in funding money-hungry electric vehicle startups, largely due to soaring Tesla share prices and the early success of the recent IPO of the hydrogen trucking company Nikola.

In fact, Fisker Inc. plans to follow in Nikola’s footsteps and become a publicly traded company via a reverse merger, said someone familiar with the deal. The edge. The startup is in talks with Apollo Global Management to merge with the publicly traded “blank check” company of the private equity firm, known as Spartan Energy Acquisition Corp.Spartan was created in 2018 as a means for Apollo to make an investment in the energy industry, and has only until August 14 to acquire a business or else it will be dissolved, investors and shareholders recovering their money. (Spartan officials are trying to extend this date to February 2021, according to a recent file.) News of the talks between Fisker Inc. and Apollo Global Management was first reported by Reuters.

“Special Acquisition Companies” like Spartan have become increasingly popular in the past year, especially after a number of prestigious companies have had problems while going the traditional route to going public . After Uber and Lyft were released last year, each’s share price immediately fell, and the shares of the two companies are still trading below the original price. WeWork, meanwhile, totally imploded after careful consideration of the series of so-called “roadshow” meetings that banks organized with investors before going public. By merging with Spartan, Fisker Inc. could get around some of these problems and gain faster access to public markets to raise some of the huge amount of money needed to make a car.

Meanwhile, he has $ 50 million in new money from Louis Bacon’s investment company, Moore Strategic Ventures, LLC. This is more than triple the amount that Fisker Inc. had previously raised with the venture capital arm of the construction company Caterpillar and the family behind the oil drilling company Schlumberger.

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