Better Place, a Palo Alto, Calif.-based provider of electric vehicle services, announced today that it has raised $350 million in a Series B funding round led by HSBC. The deal values Better Place at $1.25 billion.
Joining HSBC, as new investors are Morgan Stanley Investment Management, and Lazard Asset Management. Returning investors include Israel Corp., VantagePoint Venture Partners, Ofer Hi-Tech Holdings, Morgan Stanley Principal Investments, and Maniv Energy Capital. HSBC led the round with an investment of $125 million and takes a 10 percent stake in the company.
Better Place, founded by software executive Shai Agassi, is developing an electric car network where customers will be able to lease batteries for a monthly fee and instead of fueling up at gas stations, they will be able to charge their batteries at home for free or swap out batteries at various designated locations. The company says it’s on track to launch two test projects in Israel and Denmark in 2011.
PeHUB reports that in October 2007 Better Place raised $200 million. The company says it will use the financing to expand into new markets in Europe and Asia.
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