Hydrogen car company Riversimple has raised £811,818 topping its £750,000 goal on Seedrs. The vehicle manufacturer is selling a 1.36% equity stake at a pre-money valuation of £58,933,056. As of today, 649 investors have backed the round.
This is the company’s third crowdfunding round on Seedrs. A year ago March, Riversimple raised £1.1 million at a pre-money valuation of £49,944,072.
In February, Riversimple received a £1.25 million government grant for low emission vehicles helping to boost the firm’s prospects.
Riversimple’s hydrogen-fueled vehicle seeks to challenge the established petrol/diesel sector and emerging electric vehicle industry with a zero-emission car that takes only 3 minutes to fuel. The Rasa has a 300-mile range and an equivalent of 250 mpg, according to the company.
One of the challenges with hydrogen-powered cars are points of refueling. While gas stations are everywhere and an electric plug is easily installed in your home, hydrogen stations are not as ubiquitous. Riversimple notes that as of today there are 17 active hydrogen refuelers around the UK with another 5 in the pipeline. The question of hydrogen stations is a classic chicken and the egg question. Riversimple shares a good discussion about the challenge here.
Riversimple’s entry vehicle is the 2 seater Rasa. The company says the first production run is underway now. Customers will not purchase the car as the company will provide as a service for a monthly fee which includes all fuel, maintenance, and insurance. With fuel included, it may make the car more appealing depending on the final price.
By crowdfunding, Riversimple accomplishes two goals. First is raising more growth capital and the second is raising awareness. The consumer awareness, and potential demand, is key to its success.
Starting later this year, Riversimple says it will launch a public 12-month trial of 20 hand-built Rasa cars. The company explains that the vehicle itself will be substantially refined and modified before being manufactured at scale, which may take another 2 -3 years.
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