Focus on operator quality and financing models
Emobility is facing considerable challenges: Despite ambitious climate targets, companies in the industry are increasingly coming under pressure. Recent bankruptcies not only of hardware manufacturers such as Compleo, enercharge and ABL, but also of the fast-charging operator Numbat and the service provider Parkstrom, illustrate the risks associated with high investment costs, uncertain market conditions and complex business models. Nevertheless, the fast-charging infrastructure remains a central pillar of the transport transition.
Two experts in our "Behind the Scenes" series are discussing how operators and investors can operate successfully in this challenging environment: Dr. Ulrich Neuert from CRESCAT Advisory and Dr. Andreas Pfeiffer from greenventors. Together they will shed light on innovative approaches in operator optimization and financing modeling that not only create stability but also enable growth.
Dr. Neuert, CRESCAT Advisory specializes in corporate finance for medium-sized companies. How do you assess the current challenges in financing fast-charging infrastructure, especially against the backdrop of the tense market situation?
Dr. Ulrich Neuert: The current market situation is indeed challenging. Rising financing costs and the uncertainties surrounding the use of fast-charging infrastructure make it difficult for operators, investors and banks to develop long-term prospects. Our job at CRESCAT is to support medium-sized companies in developing suitable financing models that are tailored to their individual requirements. This includes identifying risks at an early stage and structuring the financing in such a way that it remains viable for both investors and operators.
Investors expect reliable data, transparent structures and scalable business models. Dr. Ulrich Neuert
Dr. Pfeiffer, how does greenventors support operators in these uncertain times?
Dr. Andreas Pfeiffer: Our support begins with the development of a comprehensive operator concept. It is not just about evaluating the location, but also about optimizing business models and processes in order to meet both operational and financial requirements, as well as pursuing a clear strategic direction. Especially in uncertain times, it is essential to integrate the financing strategy into the overall concept. Operators benefit from scalable concepts that not only increase their efficiency, but also make them more attractive to investors.
One example of the risks lurking in this market is the insolvency of Numbat. This shows how important it is not only to pursue innovative approaches, but also to put them on a solid economic basis. Numbat certainly had exciting ideas in the area of fast charging infrastructure, but was apparently unable to successfully implement scaling and sustainable financing. This is exactly where our approach comes in, by helping operators to develop viable models that can ensure success not only in the short term, but also in the long term.
Dr. Neuert, in your opinion, what three criteria are crucial for investors when providing capital to an operator?
Dr. Ulrich Neuert: Investors attach particular importance to three central criteria. Firstly, the sustainability and scalability of the business model. Operators must show that they are not only operating economically today, but can also react to different market conditions and grow in the future. Secondly, transparency is crucial. Investors expect reliable data, precise profitability analyses and comprehensible forecasts. Thirdly, the quality of the operator plays a key role. The ability to implement projects efficiently and operate them sustainably is essential. Operators who meet these three points create a solid foundation for convincing investors.
Sustainability and flexibility are essential to realizing long-term viable projects. Dr. Urlich Neuert
How can site assessment and operator quality work together to make projects more successful?
Dr. Andreas Pfeiffer: Site evaluation and operator quality are closely linked. A first-class location alone is not enough if the business model is not viable. Likewise, a competent operator cannot be successful at a suboptimal location. Our job at greenventors is to combine both aspects. In addition to evaluating site quality, we optimize operators' processes and strategies to ensure long-term success.
Dr. Ulrich Neuert: I agree. Location and operator quality complement each other perfectly. A clear strategy, coupled with operational efficiency, is crucial to making projects both economically and sustainably successful. Our collaboration helps to make this connection effective and to offer investors a transparent basis.
Site evaluation and operator quality are two sides of the same coin – both have to be right to be successful. Dr. Andreas Pfeiffer
Finally, what are the next steps to drive forward the expansion of fast-charging infrastructure in a tense market environment?
Dr. Andreas Pfeiffer: Operators must make data-based decisions and consistently align their business models with scalability. A viable operator concept linked to a scalable financing strategy will be the key to mastering market requirements. This is where cooperation with partners such as CRESCAT Advisory can create considerable added value, as they take over the financial structuring and target investors.
Dr. Ulrich Neuert: Exactly, and operators must not only think in the short term. Sustainability, flexibility and a clear vision are essential to realizing long-term viable projects. A structured approach that incorporates all aspects - from operator optimization to innovative financing models - will be crucial to making the market sustainable.
A viable operating concept linked to a scalable financing strategy is the key to success. Dr. Andreas Pfeiffer
The interview clearly demonstrated how crucial the combination of operator quality, strategic optimization and innovative financing models is for the success of fast-charging infrastructure projects. greenventors brings a deep understanding of the market and the ability to make operators fit for the requirements of a dynamic market, while CRESCAT Advisory convinces investors with transparent, risk-optimized solutions. Operators benefit from scalable concepts that enable efficiency and growth. Investors receive a reliable basis for their investments through clear data and viable business models. This holistic interaction is the key to further expanding the fast-charging infrastructure in a challenging market environment and making the mobility transition sustainable.