© sono motors Electronics Production | December 03, 2019
Sono Motors launches community funding campaign
The German mobility provider Sono Motors launched one of the biggest community funding campaigns in Europe yesterday. The company’s campaign target is to generate EUR 50 million between now and December 30, 2019, with preorders from existing and new supporters.
The capital will primarily be invested in production facilities for prototypes of the first solar electric vehicle, the Sion. This public campaign follows a strategic reorganisation of the company’s finances. The goal, according to the company is; a long-term realisation of the vision, an unreserved focus on the objectives of Sono Motors as well as having production and delivery of the Sion to be safeguarded in ways other than with conventional financing rounds. "In the past, the company’s high capital requirements meant that international investors in particular played a major part in its financing strategy. However, in advanced negotiations with a number of potential partners it became increasingly apparent that Sono Motors’ long-term corporate strategy could not easily be reconciled with the interests of traditional investors," the company writes in a press release. This would have resulted in a departure from the vision of the company but also an outflow of technologies and patents. Therefor Sonos Motors has made the decision to no longer pursue the previous strategy and the termination of the corresponding talks requires the acquisition of new financial resources, which also postpones the production of the first vehicles into September 2021. “We realized again and again over the past few months that we have entirely different goals to traditional financial investors,” says Laurin Hahn, CEO and cofounder of Sono Motors, in the press release. “Aggressive growth and quick profits are difficult to reconcile with a sustainable corporate and vehicle concept which is designed to give access to affordable and eco-friendly electromobility throughout. In addition, providing start-ups that have a capital-intensive business model with venture capital does not work in Germany, neither in the initial stages nor at the growth stage. Had we relied solely on funding measures or the German market environment, Sono Motors would probably not exist in its current form. Urgent action is required from the politicians in this area. It should be possible to implement such a future project in Germany and lead it to economic success. We will continue to fight anyhow. For climate-friendly mobility and for our reservation holders,” Hahn adds.. Sono Motors’ decision to opt for community funding is an unmistakable acknowledgment to the more than 10,000 supporters who have already preordered and prepaid a Sion and a rejection of teaming up with investors who do not share or support the company’s vision and goals. With the start of the campaign, the company founders are transferring their remaining shares of the profits to a Community Pool and transfer future profits to today's Sion reservation holders. The founding team currently holds around 74% of the company’s shares and 64% of the profit participation rights.