BOSTON & MONTREAL, July 06, 2022 (GLOBE NEWSWIRE) -- Spring Lane Capital, a private equity firm focused on providing hybrid project capital for sustainability solutions in the energy, food, water, waste and transportation industries, announced today a debt facility commitment of up to $50M, plus a co-led Series A equity investment in, EVCS Charging Solutions, Inc., or EVCS, one of the largest electric vehicle (EV) fast-charging network operators on the West Coast. Spring Lane's commitment will support EVCS' rapid expansion into 35 new cities across California and Washington as well as increasing charger density in its existing communities, making fast charging with EVCS even more convenient.EVCS plans to more than double its network footprint to nearly 1,500 chargers by 2023.
Since the company's inception in 2018, EVCS has installed over 600 publicly accessible chargers, primarily in California, with over 200 of those being Direct Current Fast Chargers ("DCFCs"). EVCS has announced that it is pursuing a public EV charging infrastructure business model in a nascent but rapidly expanding market, with tailwinds from consumer EV adoption, expanded vehicle availability, and policy support at local, state, and national levels. As the EV market takes off, a heightened emphasis is being placed on DCFCs to reduce driver charge time and entice further EV adoption.
Spring Lane Capital believes EVCS represents an attractive and differentiated EV charging infrastructure financing opportunity. The company's membership-based model and expertise in working with local regulators has helped them grow quickly to date both in terms of number of charging stations and customer usage, and this capital will help EVCS further accelerate their deployment rate.
"Investment in EV charging networks has reached a new inflection point with a wave of EV deals. This sends a strong signal to infrastructure investors and the capital markets, more broadly, that the EV marketplace is prime for expansion," said Nikhil Garg, Partner and Co-Founder of Spring Lane Capital. "High gas prices, the introduction of compelling new vehicle models, and concern for the environment have spurred a massive upswing in EV adoption, with charger utilization increasing at such a breakneck pace that EVCS's expansion couldn't come at a more opportune time. We are experiencing a significant shift from only the very wealthy having access to the EV market to more widespread ownership. This trend underscores the prompt need for infrastructure to be put into place so we can expand charging networks throughout the country, to serve all communities."
"With over 600 chargers in California, Oregon and Washington, we've grown to become one of the largest privately held EV fast-charging networks in the U.S.," said Gustavo Occhiuzzo, CEO and Co-Founder of EVCS. "With this new round of funding, we'll increase EV driver access to our unlimited charging subscription product by doubling the number of chargers over the next 18 months."
"There is a real public private partnership investment opportunity here. As a pioneer in the EV market, EVCS has created a unique framework that bridges federal, state and local funds with additional forms of financing to facilitate the rapid expansion of their network. This investment also marks a true evolution for Spring Lane Capital's business model as well by catalyzing more flexible forms of capital. We are excited to continue working with Gustavo, Ian and the EVCS team to close the disparity between public EV infrastructure and EV adoption," added Garg.
With Congress' recent approval of $7.5 billion in spending for new, public EV charging installations and major automakers expanding EV offerings, EV sales are expected to increase from 608,000 in 2021 to 15 million in 2025. With the dual challenges of climate change and inflated gas prices facing American consumers, EVCS aims to demystify and democratize the EV charging experience for all drivers. This endeavor includes building a more ubiquitous network of fast and reliable chargers and offering predictable monthly energy costs through fixed price subscription charging.
Today's news follows Spring Lane Capital's announcement in May on its equity commitment to Soluna Computing Inc., a developer of green data centers for cryptocurrency mining and other intensive computing and an announcement in April regarding a second close of approximately $50 million for its second private fund, bringing Spring Lane Capital's total AUM to $350M. Spring Lane finances entrepreneurs and project developers in the sustainable infrastructure sectors including food & ag, energy, water, waste and transportation.
About Spring Lane Capital:
Spring Lane Capital is a private equity firm based in Boston, MA and Montreal, QC that provides hybrid project capital for sustainability solutions in the energy, food, water, waste and transportation industries. The firm's structured financial model seeks to tap into some of the fastest growing segments of these markets, that more traditional forms of project capital cannot access due to their scale and the limitations of existing investment models. For more information, please visit springlanecapital.com.
EVCS was founded in 2018 and has quickly become one of the largest and fastest-growing electric vehicle charging networks on the West Coast. Powered by 100% renewable energy, EVCS is disrupting the mobility power industry through a turn-key approach that utilizes public and private funding sources to encourage the installation of fast-charging locations. EVCS has secured over $50M in government funding and engaged nearly 150 partner sites to build and grow its net zero carbon network. EVCS' mission is to cut emissions while simultaneously improving air quality by enabling the rapid adoption of zero-emission electric vehicles. For more information, visit www.evcs.com.
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