A Palo Alto–based electric car venture working in Israel has received the largest-ever funding deal in clean-tech investment.
Project Better Place, headed by Israeli American Shai Agassi, on Jan. 25 signed a funding deal under which a consortium of investors will invest $350 million, according to reports.
The new funds will be devoted to research and development and putting in infrastructure to support electric cars in Israel and Denmark, Agassi told the New York Times.
The list of investors is led by HSBC, which invested $125 million, as well as Morgan Stanley Investment Management and Lazard Asset Management. Better Place’s original investors include Israeli companies and VantagePoint Venture Partners in Silicon Valley.
Better Place is set to provide charge points throughout the country for its batteries in electric cars, and also will provide switching stations to exchange a spent battery for a charged one en route. The batteries have a range of approximately 100 miles.
The company, founded in 2007, is now valued at $1.25 billion. It will make its commercial debut in Israel and Denmark in 2011. — jta