Ever since the Project Better Place concept was revealed to the public by its founder, Shai Agassi, in October of 2007, we have patiently been waiting for all of their venture capital money to dry up and for the company to cease to exist.
Shai Agassi Was Removed As CEO Of Better Place 6 Months Ago Despite Building Almost Two Dozen Swap Stations And Losing Only $590 Million
However, despite endless waves of red ink splashing up against it shores, the company seemed to be able to tap endless resources to continue to live on, despite having no readily available business model, or proof on concept, to support its existence.
Now on its 4th CEO in under a year, after front-man Shai Agassi was dismissed from his role as CEO at Better place six months ago, the results just keep getting worse, and it appears they are finally running out of backers, as Israel Corp's (the last investor-whale to be caught by BP) most recent financial report has revealed that Better Place has received a "going concern" warning.
Rather than explain how bad things are at Better Place, or how dire their results have been to date, we will just outline some highlights:
- $454 million lost in 2012
- "going concern" warning
- $812 million lost since inception
- 2012 revenue: $7 million
- 2012 operating loss: $386 million
- BP has cut 1/3 of employees in 2012, and is down to 600, with another
60010% set to leave
- has abandoned all worldwide markets except Israel and Demark (Hawaii charging network recently sold to OpConnect)
- Renault has indefinitely postponed the Fluence ZE's introduction in Australia because of BP's failure to build swap-stations
- 90% cash burn in 2012, from $293 million to start out the year, down to $34 million by 2013
This Concept (and a $125 million investment) Was To Eliminate All Petrol Vehicles In Demark
Despite all these factors, and writing down the value of it's Better Place investment (from a net investment of $293 million to $16 million), Israel Corp puts a brave face on its most recent investment of $66 million into the project...and is considering
lighting some more money on fire another round of financing:
"As the lead investor in Better Place, the company is satisfied with the progress in the past few months and is positively examining a further investment in light of the fact that Better Place is dependent on continuing financing through capital or debt until it can produce positive cash flow from its ongoing operations."
Seriously fellows? Isn't it time to just call time of death?