Electric Vehicle Charging Station Startup ChargePoint Raises $22.6 Million

May 12 2014, 11:22am CDT | by

The electric vehicle market is a hard road to take for any startup. Ignoring Tesla’s booming success on the stock market over the past year, the industry lays rife with recent high-profiles failures: Better PlaceECOtality and Fisker Automotive.

That doesn’t seem to be stopping ChargePoint, currently one of the largest network providers of electric vehicle charging stations. The Campbell, CA-based startup has raised $22.6 million in late-stage venture capital. This brings its total VC funding to just under $110 million.

Existing investor Kleiner Perkins Caufield & Byers made the largest investment in this round, doubling its equity stake in the company. Other existing investors Braemar Energy Ventures, Rho Ventures and BMW joined in again.

The startup is still looking for $4.4 million in additional financing in the round.

The fast-growing startup installs charging station in public locations like Target parking lots, apartment buildings and workplaces. And perhaps more importantly, ChargePoint provides network cloud services for charging stations made by other companies.

ChargePoint President and CEO Pasquale Romano said they’ll be using the new cash to expand its sales force to meet demand and move into residential charging stations. Figuring out how to get into the home will be a big step for the company.

“We’re all about everything being connected,” said Romano in a call last Friday afternoon.

ChargePoint currently makes the majority of its money through charging station installations, but is increasingly moving into service partnerships and hooking up more charging stations to its cloud network. Last week, for example, ChargePoint partnered with French electrical systems giant Schneider Electric. Schneider will be hooking up its 10,000 charging stations to ChargePoint’s cloud services.

“By 2020 or 2025, I think the U.S. will have hundreds of thousands of charging stations,” said Kleiner Perkins partner and ChargePoint board member Michael Linse. “Hopefully 90% to 95% will be connected by ChargePoint. By that point, there will be tons of value in the network itself.”

“The services business will naturally dominate one day, even if we continue to stay significantly in the hardware business,” Romano added.

ChargePoint also has partnerships with big car manufacturers like Cadillac, Chevy, BMW, Nissan, Smart, Fiat and in “active discussions with pretty much every major automaker,” according to the company. So when a BMW customers buys one of its all-electric i3 cars, they will have easy access to ChargePoint’s network.

ChargePoint was founded in 2007 and has since grown to over 17,o00 charging stations across North America, Europe Asia and Australia. The company claims a 70% market share of networked public charging stations. It also has some impressive leadership behind it: One of its founders and current chief technical officer, Richard Lowenthal, owns the patent on networked EV charging stations.

When the company first started, electric vehicles still hadn’t really caught on yet. But by 2013, electric vehicle sales growth has soared by 361%. ChargePoint growth in the past year has reflected that trajectory, Linse said.

“By Q2 2012, when we first invested in ChargePoint, it was clear electric cars were starting to gain traction,” Linse said. “What’s happened since then is that electric cars have started to roll out in an accelerated fashion. Some of the electric cars coming out are not just good electric cars, they are the best cars on the road. That dynamic was incredibly positive, and we have now started to see that dynamic translate into very strong revenue growth for ChargePoint.”

ChargePoint is in a tough market. Competitors Better Place and ECOtality have gone bankrupt in the past year after receiving loads in venture capital. The major distinction between ChargePoint and these deceased players is that ChargePoint doesn’t own the capital-intensive charging stations once they sell it to a business.

ChargePoint also makes money by charging these customers and other charging stations in its network a service fee for hooking into the company’s cloud network.

One possible setback for ChargePoint is the lack of integration into Tesla’s supercharger network. The superchargers are designed for helping drivers juice up their vehicle while making long-haul trips between cities, but they only work with Tesla cars./>/>

“Tesla doesn’t get any benefit from walling it off,” CEO Romano, who is a Tesla driver himself, said. “I don’t see why they’re not putting them on ChargePoint. I’d love to get Tesla’s superchargers on ChargePoint.”

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

IPad Air Giveaway 2014 is Online
IPad Air Giveaway 2014 is Online
Our sister site I4U News is giving away a brand new iPad Air or if you can wait an iPad Air 2. This is an $499 value.
 
 
Your Parent Or Kid Moved In: Are You Covered?
A record 57 million Americans now live in multigenerational family households — double the number in 1980, according to a new Pew Research Center study. And I bet many of them have the wrong homeowner’s or renters...
 
 
Pandora Looks to Challenge Terrestrial Radio's Dominance in Cars
Pandora Media is one of the largest Internet radio providers in the U.S. with more than 75 million active users. While the company’s active user count has increased at a robust pace historically, it is likely to slow...
 
 
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
It’s January 2026. New York Yankees owner Hal Steinbrenner gets out of his driverless car and triumphantly marches before the gathered press to introduce his prized new free agent. It’s a record-breaking contract—over...
 
 
 

Latest from the Network

Karl Lagerfeld: Young designers have ego problem
London, Sep 30 (IANS) Fashion designer Karl Lagerfeld says that young designers have ego problems. "Most of the designers, especially the young ones, have ego problems. I couldn't care less. The label is the label and...
Read more on Celebrity Balla
 
Amanda Bynes arrested for drink-driving
Amanda Bynes was arrested for driving under the influence (DUI) yesterday morning (09.28.14). The 28-year-old actress, who sought treatment in rehab last year, was detained at 3am in San Fernando Valley after police...
Read more on Celebrity Balla
 
India, US need not be comfortable on all aspects of partnership: Modi
Washington, Sep 30 (IANS) Prime Minister Narendra Modi set the tone for his summit with US President Barack Obama Monday saying India and US should think of what they can do together for the whole world even as they...
Read more on Politics Balla
 
Hundreds of bodies found in Ukraine mass graves: Rebels
Moscow, Sep 30 (IANS/EFE) Some 400 bodies, mostly of civilians, were taken to the morgues of Donetsk and other cities in eastern Ukraine now controlled by pro-Russian rebel militias after they were retrieved from mass...
Read more on Politics Balla
 
UN chief wants earliest formation of new Afghan government
United Nations, Sep 30 (IANS) UN Secretary-General Ban Ki-moon Monday congratulated Ashraf Ghani Ahmadzai on his inauguration as the new Afghan president and called for a new Afghanistan government's formation at the...
Read more on Politics Balla
 
Hostages in Philippines plead for their lives
Manila, Sep 30 (IANS/EFE) Two German hostages held by the Philippine Islamic group Abu Sayyaf appealed for their lives Monday, urging authorities in Berlin to pay a ransom and withdraw support from the international...
Read more on Politics Balla
 
Man dies two years after being struck by stray bullet
Santiago, Sep 30 (IANS/EFE) A 23-year-old Chilean man died after two years in a persistent vegetative state as a result of being shot in the head unintentionally by a law enforcement officer during a student protest in...
Read more on Politics Balla
 
Terrorism exported to India, Indian Muslims will fail Al Qaeda: Modi
New York, Sep 30 (IANS) Terrorism has been exported to India and it is not home-grown, Prime Minister Narendra Modi said here Monday, adding that the Indian Muslims will fail the Al Qaeda. Answering a query at the...
Read more on Politics Balla
 
Avril Lavigne celebrates birthday without Chad Kroeger
Avril Lavigne celebrated her 30th birthday without her husband Chad Kroeger on Saturday (09.27.14). The 'Girlfriend' hitmaker and the Nickelback rocker, who got married 14 months ago, have fuelled more rumors their...
Read more on Celebrity Balla
 
Kim Kardashian West almost attacked again?
Kim Kardashian West was allegedly almost attacked for a second time at the weekend. The 33-year-old star's security team blocked Vitalii Sediuk, who tackled her at Paris Fashion Week last Thursday, from striking her...
Read more on Celebrity Balla