Proterra Raises $200 Million for Battery and Electric Bus Technology

Proterra, a developer of battery system technology for robust electric vehicles, has announced a new funding round totaling $200 million.

This latest investment was spearheaded by Cowen Sustainable Investment Advisors, with additional contributions from Soros Fund Management, Generation Investment Management, and Broadscale Group.

Cowen contributed the majority of the funding, providing $150 million, while Soros, Generation, and Broadscale collectively invested the remaining $50 million.

This new financial injection arrives after a period of discussion regarding a possible initial public offering for the significant battery systems company. Reports from TechCrunch in August 2019 indicated Proterra had reached a valuation of $1 billion, as assessed by investors, and was considering an IPO at that time.

The company stated that these funds will be allocated to further its ongoing research and development initiatives focused on battery and electric drivetrain technologies, as well as to expand its business development efforts and increase its presence in various commercial vehicle sectors.

Proterra is also concentrating on the development of charging and energy management technologies to reduce the operational expenses associated with managing electric vehicle fleets.

To this point, Proterra has secured approximately $1 billion in equity and debt financing from investors including G2VP, Kleiner Perkins Caufield & Byers, Constellation Ventures, Mitsui & Co., BMW i Ventures, Edison Energy, the Federal Transportation Administration, General Motors’s venture arm, and Tao Capital Partners.

Proterra primarily manufactures buses for governmental entities at the local, state, and federal levels, capable of traveling up to 350 miles on a single charge. Based in Burlingame, California, the company includes several former Tesla employees in key leadership roles, notably former CEO Ryan Popple, and has broadened its operations to supply its powertrain systems to other manufacturers of heavy- and medium-duty electric commercial vehicles.

The company is currently collaborating with original equipment manufacturers (OEMs) such as Thomas Built Buses, Van Hool, FCCC, BusTech, and Optimal-EV to introduce fully battery-electric vehicles powered by its technology, as stated in a company announcement.

“With increasing demand for battery-electric vehicles and completely zero-emission fleets, we are pleased to work with CSI and our other investors to expedite the shift towards clean, quiet transportation for everyone and deliver a greater number of Proterra Powered vehicles globally,” said Jack Allen, Proterra’s chairman and chief executive.

BofA Securities served as the exclusive placement agent for this transaction.