Formula E Raises $68M From Qualcomm, Amura Capital For First Season (Update)
The main investors in this round are Qualcomm Incorporated, through its venture capital arm Qualcomm Ventures, and Andorran-based private equity fund Amura Capital. Both have committed to the new electric race series, alongside existing investor Causeway Media Partners – owners of the Boston Celtics NBA basketball team. The three join current shareholders Spanish entrepreneur Enrique Banuelos and Alejandro Agag, CEO of Formula E Holdings.
A further three shareholders are expected to be announced shortly with all receiving a seat on the Formula E board of directors.
Formula E Holdings is a privately funded consortium which holds the exclusive license from the FIA to promote its new fully-electric racing series, which hosts its inaugural event on September 13 racing around Beijing’s iconic Olympic ‘Bird’s Nest’ Stadium.
The championship is designed to appeal to a new generation of motorsport fans, whilst accelerating the interest in electric vehicles and promoting sustainability. Racing entirely on temporary city-centre race tracks, it uses single-seater electric cars capable of speeds in excess of 150mph (225kph). Its 10 teams feature some of the leading international names in motorsport including Alain Prost and Michael Andretti, along with high-profile environmental supporters such as Sir Richard Branson and Leonardo DiCaprio.
Steve Pazol, GM of Wireless Charging for Qualcomm, which is also a Founding and Technology Partner to Formula E, said: “We are very excited to deepen our relationship with Formula E. We look forward to demonstrating our technology throughout the race series, including our Qualcomm Halo wireless charging on the Qualcomm Safety Car, and wireless data connectivity and other technologies on the race cars themselves. Formula E is the perfect way to demonstrate the leading edge of technology of this next generation of environmentally responsible transportation."
Ivan Comerma, CIO of Amura Capital, said: “As a private equity fund, this investment makes sense in a diversified portfolio of best-class and unique opportunities for our clients. It is a project that shares many of the same values of our company, going that one step further by investing in the environment and sustainability with large doses of innovation. All of this is done without forgetting about the main keys to our investment offers: exclusive and profitable products for our clients."
Alejandro Agag added: "I would like to welcome the new investors that have joined us in this exciting venture. I want to thank them for their belief in this project, which will see the first ever low carbon cars racing in cities all around the world. Our new investors also show their commitment to sustainability, and add great experience and solidity to the FIA Formula E Championship. What started out as an idea, is now becoming a reality. With the first cars delivered to the teams in just over a week, and works beginning around the Olympic Park in Beijing, Formula E is moving closer to its goal to show fans around the world the true potential of electric cars."
05/13/14 Formula E "has completed funding for its first season by securing investor backing" from U.S. tech firm Qualcomm, "paving the way for the first race in the series around Beijing’s Olympic Park in September," according to Roger Blitz of the FINANCIAL TIMES.
Formula E raised $68M from Qualcomm, which is "already a series sponsor, and private equity fund Amura Capital." They join existing investor Causeway Media Partners, which owns the NBA Boston Celtics. Formula E has raised more than $96M from rights deals with broadcasters such as Fox Sports in the U.S., Asahi of Japan and ITV in the U.K., and sponsors including Qualcomm, DHL, Michelin and Renault.
The promoter "expects to break even" toward the end of the first season. Team budgets are expected to be up to $4.8M. Car manufacturers "will be following the inaugural season closely before deciding whether to participate by developing their own cars." Cars for the inaugural season "have been manufactured by a consortium" including Renault, Spark Racing Technology, Italian chassis maker Dallara and the technology arms of F1 teams McLaren and Williams. All the teams "will test the cars at new facilities built at Donington Park in Leicestershire," which opens on Thursday. FT.com