Inspiration Launches with $200M Funding, Revel as First Customer

Inspiration's Drive to Electrify Commercial Fleets

Inspiration is dedicated to accelerating the adoption of electric vehicles within commercial fleets. The company has initiated this effort through financial backing of Revel, an electric mobility provider operating a fleet of Tesla vehicles for ride-hailing services.

The startup, focused on financing electric vehicles and developing associated charging infrastructure, officially launched on Wednesday with an initial capital commitment of $200 million. This funding will enable Inspiration to invest in crucial assets.

Securing Initial Funding

ArcLight Capital Partners, a venture fund specializing in energy infrastructure investments, provided the funding. Josh Green, Inspiration’s founder and CEO, characterized the investment as a platform company investment.

This structure allows Inspiration to allocate funds towards infrastructure assets – including vehicles and charging solutions – alongside general corporate needs. Essentially, it represents a significant injection of balance sheet capital, marking only the beginning of Inspiration’s growth.

Future Funding and Expansion Plans

Having operated discreetly since the close of the first quarter of this year, the company is currently engaged in discussions with additional investors. The goal is to secure further capital to support ongoing vehicle financing and infrastructure-related assets.

These assets encompass energy systems, such as solar power for charging stations, energy storage solutions, and real estate acquisitions, as outlined by Green.

“We are fundamentally a finance company, and will consistently seek capital from appropriate sources to minimize costs and broaden EV accessibility,” Green explained to TechCrunch. “Our immediate objectives involve expanding into all light and medium-duty vehicle segments and applications, establishing ourselves as the premier EV solutions provider in North America. We aim to be the preferred partner for fleet companies seeking a customized, comprehensive EV solution, aligned with the shared goal of maximizing economic benefits from EV fleets while substantially reducing greenhouse gas emissions.”

Targeting Diverse Customer Segments

Inspiration intends to serve three distinct customer types. The first is emerging EV fleet operators – venture-backed companies built around an electric vehicle fleet model.

Revel, based in Brooklyn, which began with electric mopeds and expanded into Tesla ride-hailing and an EV charging hub, exemplifies this category. Inspiration previously assisted Revel in acquiring 49 EVs for a pilot program.

However, the New York Taxi and Limousine Commission (TLC) intervened, clarifying that all for-hire vehicles, even electric ones, require a TLC license plate.

Providing Capital and Comprehensive Solutions

“We function as a key capital partner, enabling these companies to focus their venture capital on technology development, customer acquisition, and leveraging our expertise in vehicles, charging infrastructure, energy infrastructure, and real estate,” Green stated.

“Our ambition is to simplify EV fleet deployment, making it as straightforward as purchasing a conventional vehicle,” Green added. “We assist customers in identifying the optimal vehicles based on their driving patterns, range requirements, and vehicle downtime. Subsequently, we design and implement charging infrastructure to ensure operational continuity.”

Serving Corporate Fleets

Corporate fleets, consisting of vehicles provided to employees by Fortune 500 companies, represent the third customer segment. These companies typically seek efficient methods to achieve their corporate sustainability targets.

Inspiration offers tailored services to all customer categories. It can deliver a complete, end-to-end solution, encompassing vehicle financing, charging infrastructure provision and management, and collaboration with energy providers to optimize electricity usage.

Alternatively, customers can select individual services on an as-needed basis.

The Importance of Charging Infrastructure

Green emphasizes the critical role of charging infrastructure, particularly due to the substantial costs associated with its installation at a fleet level.

“Fleet charging demands significant power capacity, necessitating a thorough understanding of energy pricing, utility rate structures, and optimal charging times to minimize demand charges,” Green explained. “Furthermore, charging economics vary considerably by location. Incentives and rate structures in New York City differ greatly from those in New Orleans. Therefore, the economic viability of an EV fleet must account for these location-specific factors, and we provide this analysis for our clients.”

A Renewed Commitment to Climate Action

Green, with a background in climate and clean energy dating back to 2003, founded the startup following a period of reflection during a 14-month global journey. This trip, initially prompted by ClimateTech burnout, ultimately rekindled his dedication to combating climate change.

Witnessing the visible impacts of climate change on landscapes he had previously visited in Patagonia, Green returned with a renewed sense of purpose.

“I began to consider how I could best contribute once more, and EVs consistently emerged as a promising area,” Green said. “Transportation is the largest contributor to U.S. emissions. EVs now represent a field where the technology is mature, with no significant technological hurdles. Advances in battery technology provide sufficient range for nearly all commercial applications. Consequently, the primary challenges now revolve around finance and deployment, areas where I possess relevant expertise.”