Wednesday, December 24, 2014

How Fisker blew $500 million

They left the tech to others, and financing to off-brand brokers: GigaOM

How Fisker blew $500 million

Fisker Karma
Fisker Karma

Fisker Automotive Inc., the electric carmaker whose shutdown has stalled plans to revive the former General Motors plant in Wilmington, failed to secure legal control of its own innovative technology before burning through at least $300 million in private investment funds and $200 million in U.S. loans and Delaware state grants.

Katie Fehrenbacher outlines Fisker's steps and missteps for GigaOM here. Besides taxpayers, Fisker losers include Silicon Valley's seminal venture capital firm Kleiner Perkins -- and a lot of local investors around the country, including many who bought stock from two off-brand brokers: Advanced Equities Inc. and First Allied Securitites.

Advanced Equities, which also sold stakes in Bloom Energy, whose state-subsidized (and ratepayer-funded) natural-gas "fuel cell" plant is rising at a former Chrysler plant in Newark, Del., shut down last winter, Fehrenbacher adds.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
Business Videos:
Also on Philly.com:
Stay Connected