Harbinger Motors Raises $100M Series B

Navigating a Challenging Landscape for EV Startups

Securing funding for an electric vehicle startup presents significant hurdles, particularly considering the recent failures and near-failures within the industry. However, Harbinger, a Los Angeles-based company, has successfully raised capital through a strategically focused approach to electrifying the commercial trucking sector.

Securing Series B Funding

The company’s efforts culminated in a $100 million Series B funding round. This was co-led by Capricorn Investment Group, an early investor in Tesla, and Leitmotif, a newly established U.S. fund founded by a former M&A executive from Volkswagen. Existing investors, Tiger Global and mobility venture firm Maniv, also participated in this round.

A Focused Strategy for Success

“We are acutely aware of the challenges within the EV market and the numerous companies that have struggled over the past decade,” stated Harbinger CEO John Harris in an interview with TechCrunch. “Therefore, we prioritize maintaining a highly focused scope and ensuring confidence in our commitments before making them.”

Origins and Core Mission

Harbinger was founded in 2022 by a team comprised of former employees from Canoo and QuantumScape. The company’s initial objective was to develop a modular, all-electric chassis specifically designed for medium-duty trucks.

And, crucially, the company has remained dedicated to this singular goal.

Divergence from Broader EV Ambitions

Harbinger’s concentrated approach stands in contrast to other startups that attracted substantial investment based on ambitious, wide-ranging plans. For example, Arrival, operating in a similar segment, initially aimed to revolutionize vehicle manufacturing with “microfactories,” produce buses, collaborate with Uber on ride-hailing vehicles, and even explore aircraft development.

Arrival ultimately filed for bankruptcy. Harbinger, conversely, has secured Series B funding and is poised to begin production.

Experienced Team and Laser Focus

“Harbinger boasts an exceptional team of experienced professionals, possessing valuable insights and lessons learned from their previous roles,” explained Jens Wiese, co-founder of Leitmotif and former VW executive. “Their unwavering focus on this specific segment and commitment to product excellence are truly remarkable.”

The Benefits of Singular Focus

Harris emphasized that concentrating on a single product has not only ensured the company’s survival but is also contributing to the enhancement of the product itself.

He cited the battery packs powering Harbinger’s chassis as an example. Rather than utilizing stamped steel enclosures requiring welding – which can compromise battery integrity – Harbinger invested in a 6,500-ton press capable of die-casting the entire enclosure using high pressure.

This investment was feasible due to the company’s focused spending, resulting in battery pack enclosures costing just one-twentieth of the typical price.

Affordability and Economic Advantages

Such investments have enabled Harbinger to offer a more affordable chassis from the outset, rather than relying on large-scale production to achieve favorable unit economics.

According to Michael Granoff, managing partner at Maniv, this is particularly appealing to the CFOs of fleet companies.

“Companies in this sector don’t frequently replace their fleets, and when they do, it’s a long-term consideration. The financial benefits of Harbinger’s solution are so compelling that adoption becomes inevitable,” Granoff stated.

Strong Investor Confidence

Granoff’s firm has invested more in Harbinger than in any other company, demonstrating its strong belief in the startup’s potential. Harbinger’s Series B represents the sole investment round that Maniv’s second fund has joined without leading.

Industry-Leading Economics

“We have already achieved compelling unit economics, attracting investors like Tiger who typically wouldn’t participate in this space,” Harris noted. “Currently, our unit economics are industry-leading, excluding Tesla, but we anticipate surpassing their margins within the next 12 to 18 months.”