Which figures EV infrastructure companies consider essential and what investors need to see to lend them capital can be two different things. When raising capital for EV infrastructure projects, company leaders need to know which factors influence their investment decisions.
In this post, we’ll take you into the investors’ world so that you can see which numbers you need to emphasize when you meet with prospective investors. Even better, we’ll help you learn how to present those facts in a pitch that can make the difference between acceptance and rejection.
Here are some facts you need to consider before preparing to pitch EV infrastructure investors:
1. Research Lending Prospects Before You Prepare Your Pitch
What’s the EV ownership rate in your community? If it’s high, you might do well by pursuing local funding sources.
Local utilities have much to gain by promoting EV adoption. Their business, after all, is providing electricity for businesses and households.
As more people and companies purchase EVs, they will need more electricity to charge their cars, raking in more revenue for utilities. If you’re in the business of furnishing drivers with charging services, your local utility might be willing to lend you money to get the ball rolling.
Similarly, local government agencies might be interested in funding EV charging infrastructure to improve their residents’ health. Statistics show that zero-emissions vehicles are not only more beneficial for the overall environment, but they’re also healthier transportation options for passengers and drivers.
Private lenders, too, might be eager to get in on the action if EV ownership is high in your area. Profit might not be their only motive. Many private lenders also have the long-term best interest of their communities as one of their goals.
Some state governments also provide funding for EV charging infrastructure or EV fleets. Usually, environmental or health concerns are near the top of their priority lists. However, the lower cost of maintaining EV fleets could also be a motivating factor. Your pitch team must carefully review these agencies’ mission statements and goals to determine which angle might work best.
2. Determine the Growth Rate of the EV Market in Your Area
Investors need to know that your company won’t face an uphill battle finding customers. Finding statistics that show the current EV adoption rate, as well as the rate of growth over time, can help you convince investors that they’ll be at the forefront of a growing trend if they invest in your EV infrastructure project.
Providing your target area has a high incidence of EV adoption and shows an excellent rate of growth in EV sales, this statistic should be the first point your pitch team brings to the table, as Qubit’s Kshitiz Agrawal advises.
When you capture prospective investors’ attention with the potential to grow their money in a booming market, they’ll be more likely to pay close attention to the rest of your pitch.
3. Find a Pain Point That Your Company Can Solve
What could stymie the growth of EV adoption in your area? If one of the issues is a lack of high-speed charging or insufficient charging infrastructure, that’s a challenge that your EV charging company could solve.
As Agrawal points out, showing that your company can meet a growing need for a product – in this case, EV charging services – is a critical second step toward a successful pitch. If your company specializes in fleet-specific charging infrastructure, cite local fleet managers who want to electrify their fleets but have little access to charging opportunities.
4. Provide a Detailed Snapshot of Your Target Market
Your second point outlined the bare bones of your target market: the size and growth rate of EV adopters. Now, it’s time to flesh out those numbers.
Provide investors with specific details about the region where you plan to do business. How many major highways pass through the area? Are rural areas beginning to turn into suburban neighborhoods?
Find studies and surveys that demonstrate the likelihood of an increased growth rate in EV adoption.
If you live in a state or community with EV mandates, point out that EV ownership will likely rise as these mandates loom closer. Provide investors with the mandates’ deadlines.
Meet with the area’s utility providers to ensure that there will be adequate power in the grid to keep your charging services up and running before you set an appointment with any potential investors. If you won’t have enough energy to ensure dependable charging services, make sure that you have a backup power source, such as renewables or a battery energy storage system (BESS), to meet that need.
5. Showcase Your Unique Selling Proposition (USP)
Your unique selling proposition (USP) is a concise statement about what sets your EV charging infrastructure company apart from other companies vying for your prospective investors’ dollars. Include your brand values, mission, and most importantly, how you can solve your area’s EV charging challenges.
Provide prospective investors with information about the advantages of the equipment, software, and personnel that set your charging infrastructure apart from your competitors. If your company has experienced success with previous installations, provide details on those businesses and their current financial figures.
6. Lay Out Your Deployment Plan in Phases
Investors want to see a detailed plan that takes them from finding prospective sites to opening day. First, provide details about what makes your prospective sites so attractive. If they’re located along interstates or other well-traveled highways, point out the advantages of each prospective location.
If the sites are near shopping centers, hotels, restaurants, multi-family properties, or other businesses, those details are critical to attract investors’ dollars. That’s especially true if you plan to install Level 2 chargers, since these chargers require more time to provide an adequate charge.
The Site Selection and Development Process
Next, provide them with the criteria you’ll use to decide which of these potential sites will optimize your chances of success. Walk them through the real estate acquisition process, how you’ll obtain permits, and how you’ll partner with your local grid to ensure smooth operations.
If you already have a working relationship with real estate agents, landlords, or government agencies, provide them with the details.
The Procurement Process
Provide your prospective investors with your plan and estimated costs for sourcing hardware and software, alternative energy generation and storage equipment, and a reliable billing system. Additionally, state the criteria you’ll use to choose an installer, as well as the likely cost.
7. Set Milestones for Installation and Deployment
Investors like to see that you have reasonable, measurable goals that you want to achieve during the installation and deployment process. For instance, if you plan to have 10 chargers installed by December 1, 10 more chargers installed, and the previous 10 up and running by the first of the year, put those milestones on paper, as well as the expected revenue you should generate.
8. Unpack Your Marketing and Business Plans
How will you get the word out? How you plan to publicize and sell the EV-owning public on your EV charging infrastructure company is a critical detail investors will want to know. Include social media marketing, press releases, a website, local news advertising, and any promotional events you plan to launch.
How will the money flow? Provide prospective investors with information about your expected customer acquisition cost, average revenue per user, your breakeven point, your expected payback period, and other pertinent financial numbers. Don’t stop there. Give them a long-term outlook – at least three years – so they can see what to expect in the long run.
How will you deal with market or supply changes? Demonstrate that your plan is agile enough to handle downturns in EV adoption rates, energy price hikes, or changes in the political winds.
How will you comply with industry best practices and local regulations? Be aware of all of the laws that could impact your business. Show prospective investors your plan to comply with regulatory requirements and meet – or exceed – industry standards.
9. Provide Social Proof to Shore Up Your Credibility
If you have a strong track record in previous business undertakings, you’ll undoubtedly have built up a support system that includes government officials, major customers, fleet managers, and vendors. Ask those prominent professionals with whom you have a good business relationship for testimonials about your business acumen and knowledge of the EV charging industry.
10. Wrap Up Your Presentation with an Outlook on the EV Industry Nationwide
Many investors might not have their finger on the pulse of the EV space as much as we industry insiders do. With the historic growth in EV sales and now the rise of medium- and heavy-duty fleet vehicles, investing in EV infrastructure is an astute move.
Let your conclusion drive this point home.
Learn Even More Compelling Strategies at the EV Charging Summit & Expo
One of the best places to discover new ways to reach prospective investors and convince them to invest in your EV charging venture is the EV Charging Summit & Expo. With many of the world’s top EV charging professionals sharing their funding expertise with you and your team, you’ll be ready to make your pitch to investors in your area when you get back home.
Don’t wait to get your seat at the table. Register for the Summit today!
