Energy · Profile from Energy Research Companion
Better Place
The Palo Alto–founded, Israel-run electric-car network start-up that Shai Agassi launched in 2007 to end range anxiety by separating the car from its battery: drivers would buy an electric car without a battery, Better Place would own the battery and a network of robotic swap stations and charge spots, and customers would pay for distance like a mobile-phone plan. It raised ~$850m (reported) from Israel Corp, VantagePoint, HSBC, Morgan Stanley, GE and others, reached a ~$1.25bn valuation in Jan 2010 (reported), signed national deals with Israel and Denmark and pilot plans from Hawaii and the San Francisco Bay Area to Australia, Japan and China, and launched commercially in Israel and Denmark in 2012. Only one carmaker — Renault, with the Fluence Z.E. — ever built a car for it. Fewer than ~1,500 cars were on its network (948 in Israel and ~400 in Denmark by May 2013, reported). Agassi was replaced in Oct 2012 and the company filed for liquidation in May 2013. Its swap stations worked; its route to market did not.
At a glance
- Founded
- 2007 (announced Oct 2007) by Shai Agassi, former president of SAP's products and technology group, with backing from Israel Corp's Idan Ofer (reported)
- Headquarters
- Palo Alto, California (corporate, early years); operations in Israel (Tel Aviv area) and Denmark (Copenhagen)
- Ownership / structure
- Private, venture-backed. Investors (reported): Israel Corp (largest, ~30%+ reported, verify), VantagePoint Venture Partners, HSBC (lead of the $350m Jan 2010 round, ~10%), Morgan Stanley Investment Management, Lazard Asset Management, GE, Ofer family entities, others
- Leadership
- Shai Agassi (founder and CEO, 2007–Oct 2012); Evan Thornley (CEO Oct 2012–Jan 2013, reported); Dan Cohen (CEO from Jan 2013, reported)
- Capital raised
- ~$850m (reported; estimates range ~$800m–$900m+, verify)
- Assets
- ~37–40 battery-swap stations in Israel (reported, verify), ~18–20 in Denmark (reported, verify), thousands of charge spots, a fleet of batteries, software (the "Oscar" in-car navigation and energy-management system, reported)
- Customers
- 948 Fluence Z.E. cars in Israel and ~400 in Denmark by May 2013 (reported)
- Fate
- Liquidation filed in Israel, 26 May 2013 (reported); Israeli business sold to Success Assets for NIS 11m (~$3m), Aug 2013 (reported); Danish unit bankrupt (2013, reported)
- Signature moves (incl. failures)
- Founding and the Agassi pitch (2007); the Renault–Nissan deal (2008); the Israel and Denmark launch agreements (2008); the 2010 fundraising and valuation; the Fluence Z.E. and the swap stations (2011); commercial launch (2012); Agassi's ouster (Oct 2012); liquidation (May 2013)
8 strategic moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
2007
Founding and the Agassi Pitch
Founding
2008
Israel and Denmark Launch Deals
Government and utility partnerships (market-entry agreements)
2008
Renault Nissan Alliance Deal
Offtake or supply contract / partnership
2010
Fundraising and Valuation
Financing (venture equity)
2011
Fluence ZE and Swap Stations
Construction or commissioning / technology bet
2012
Agassi Ouster
Restructuring (governance and leadership change)
2012
Commercial Launch
Market launch / offtake
2013
Liquidation
Restructuring or bankruptcy (court-supervised liquidation)