Venture Capital: VW And Bill Gates-backed QuantumScape To Go Public Through SPAC
QuantumScape, a decade-old startup working to develop advanced solid-state batteries for EVs, is merging with a blank check company.
QuantumScape partners with Volkswagen (ETR: VOW3) on the development of advanced solid-state batteries for electric vehicles. In a $700 million deal announced Thursday, QuantumScape will merge with blank-check company Kensington Capital Acquisition Corp (NYSE: KCAC). Its shares will thereby list for trading on the NYSE. A blank check company is also known as a Special Purpose Acquisition Company (SPAC). Kensington raised $200 million in June, aiming to acquire companies in the North American auto sector. (The New York Times)
Solid-state batteries are the next generation of batteries because they have the same physical dimensions but much shorter charging times and a higher range.
View the video below titled “How to build a better battery” posted by Bill Gates, a backer of Quantumscape.
The battery startup spun out from Stanford University in 2010. In 2012 it struck a collaboration with Volkswagen for enabling industrial-level production of solid-state batteries since 2018. In June this year, Volkswagen increased its stake in QuantumScape by investing $200 million. That brought its investment up to more than $300 million.
QuantumScape has recently claimed that they have resolved many of the technical issues that dogged the battery and that VW now expects to have cars using pure metallic lithium in their batteries on the road by 2025.
Merger with Kensington
QuantumScape will receive about $ 700 million as a result of the transaction of which $ 500 million will comprise “private investment in public equity” or PIPE.
Institutional investors such as Fidelity Management and Research Company and Janus Transaction participated in the fundraising.
Postmerger, the company will call itself QuantumScape and trade on the NYSE under the symbol of “QS.”
“This vote of confidence from investors, and the capital provided by this transaction, will drive a more sustainable future for generations to come,” said Jagdeep Singh, founder and CEO of QuantumScape, to Bloomberg.
Justin Mirro, a specialist in transportation-related deals, floated Kensington Capital as a SPAC. The deal with QuantumScape values the battery startup at an enterprise value of $3.3 billion.
The announcement of the merger acted on the Kensington stock like an electric charge.
The SPAC closed Thursday at $18.74, up by $8.74, gaining 87.4% for the day.
Related Story: Ackman With $7B War Chest for Mature Unicorn
Latest Alternative Investment News
Nigerian startup Infibranches Technologies has received funding of $2 million from All On, an impact investing organization backed by Shell (NYSE: RDS.A). Infibranches will use the funds for customer acquisition,…
Indian used car platform Cars24 has raised $450 million comprising a $340M Series F equity round and $110M of debt. The capital funding valued the startup, founded in 2015, at…
In an innovative move, UK-based neobank Revolut is offering most of its 2,000 employees “permanent flexible working,” allowing them to choose when and how often they would like to work…
Accelerate Financial Technologies’ world-first Carbon Negative Bitcoin ETF (TSE: ABTC), now trading on the TSE, offsets more than 100% (“negative”) of the estimated carbon emissions from associated bitcoin mining and…