Overview
SparkCharge is a startup that has created a portable charger for electric cars.
The company was founded by Chris Ellis and Joshua Aviv in 2017 with the aim of tackling the issue of electric vehicles running out of power in remote areas.
SparkCharge has since become the industry leader in the space and created Charging-as-a-Service (CaaS). The company appeared on Shark Tank in season 12 and secured a deal with Mark Cuban and Lori Greiner.
As of 2024, SparkCharge has a net worth of $110 million.
Shark Tank Appearance
SparkCharge appeared on Shark Tank in season 12 seeking $1 million for 6% equity. The company was struggling to meet the demands of a booming market and needed to scale production.
They only made 50 units at the time, which were given to roadside stores.
No consumer models were available yet.
Daymond John backed out early because he didn’t know anything about the industry.
Lori felt the same but couldn’t pass up on the opportunity. Lori teamed up with Cuban, agreeing on a deal for $1 million for 10% equity with 4% advisory shares.
After Shark Tank
The deal with Mark and Lori closed after the episode aired.
SparkCharge’s appearance on Shark Tank also attracted attention from other investors. In 2022, the company raised $30 million from Series A funding led by Pendulum and Tale Venture Partners.
They also received investment from Silicon Valley Bank, and Cleveland Avenue, as well as from celebrities like Summer Watson and Pusha T.
SparkCharge is slowly expanding its locations and operates in San Francisco, Dallas, Los Angeles, and San Jose. The company announced in August 2022, it will be launching the on-demand services across 12 new cities in California.
In 2024, the business currently supports 382 cities.
The company is growing rapidly and is looking to hire more engineers.
At some point in the future, SparkCharge will need to IPO if they don’t become profitable. The business makes an estimated $5 million to $8 million in annual revenue.
The Founders
Chris Ellis, the Chief Technology Officer of SparkCharge, holds two associate’s degrees related to engineering science from Onondaga Community College and a bachelor’s degree in Electrical Engineering from UC San Diego.
Joshua Aviv, the CEO of SparkCharge, has an associate’s degree in Liberal Studies from Richland College, a bachelor’s degree in Economics, and a master’s degree in Information Management from Syracuse University.
Establishing SparkCharge
Aviv and his professor came up with the idea for SparkCharge while sitting in his college dorm. They wondered what happens to electric vehicles when they run out of power in remote areas.
In 2017, Josh set up SparkCharge, and Chris Ellis was hired as the startup’s Chief Technology Officer. Together, they developed the world’s first mobile charging tool for electric vehicles, called Roadie.
The two gentlemen raised $3 million from venture capital firms and $2 million from grants.
By 2020, the firm was on track to make $1 million.
Lessons From SparkCharge’s Success
Based on the Shark Tank episode about SparkCharge, here are three practical tips for aspiring young entrepreneurs:
1. Address a common problem with innovation
Identify a prevalent issue that many people face and develop a unique solution.
SparkCharge tackled the problem of range anxiety for electric vehicle owners by creating a portable, modular, and ultra-fast EV charger.
Finding innovative ways to solve widespread problems can attract significant interest and investment.
2. Strategic funding and resource management
Be strategic with funding and resource allocation.
SparkCharge raised capital through a combination of venture investments and grants, allowing them to build their own manufacturing facility and develop their product.
Balancing between different funding sources and managing resources efficiently can help sustain and grow your business.
3. Flexible business model and customer focus
Consider different business models and maintain a customer-centric approach. SparkCharge initially sold directly to businesses and service companies, providing a leasing model for their chargers.
This approach allowed them to control and repurpose their assets while generating recurring revenue.
Flexibility in your business model and a focus on customer needs can enhance your market adaptability and growth potential.
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