Fisker Automotive is planning to raise around $150 million in additional funds to remain afloat and to achieve breakeven until it could commence production of its second model, Ray Lane, a director at the carmaker and a managing partner at venture firm Kleiner Perkins Caufield & Byers, told Reuters.
Fisker has managed to amass over $1 billion in private financing from venture firms and others since it was established in 2007. Fisker, the maker of the $100,000-plus Karma hybrid sports car, learned earlier this year about being denied access to more than half of a $529-million government financing that was the basis of its business plan.
According to Lane, Fisker needs money on its balance sheet to fund operating expenses and to finance the development of the next car. The carmaker has raised over $400 million in venture funds in the past 12 months, but it still needs $150 million to achieve breakeven. The carmaker mulls calling out for financial support from investors in 2013 just to raise more money, Lane told Reuters.
He, however, declined to specify how much money Fisker still needs overall. Lane disclosed that if Fisker achieves breakeven, it could launch an initial public offering or a sale to a strategic investor in late 2013. Fisker initially had planned to replace its government-backed loan with high-yield debt plus equity, but trashed the plan in favour or increasing equity, Lane said.