Venture Finance Report on Enovate Motors

Research topic: Enovate Motors (Chinese Start up)

List of Research questions:

1. What is their outlook?
2. Company viability?
3. Chance of exit?
4. Future additional series funding?

Summary : ENOVATE Motors was selected as the startup company for this evaluation. The company was analyzed by asking how much the company has raised thus far via Series A funding, whether or not the market is conducive to electric vehicles, and how the car market will progress in the future in order to determine whether or not ENOVATE warrants future investing. The information included in this report was obtained from various new articles and business reports. The graphs included have been cited appropriately

Enovate Motors Evaluation

        ENOVATE Motors is an all-electric vehicle manufacturer based in Shanghai, China. The company was founded in 2015 and has already raised two billion Chinese Yen, or 238 million USD in a Series A round which was recently announced on April 16, 2019. My takeaway of this company is that they will continue to grow exponentially over the course of the next ten years. The car industry is predicted to plateau in regard to car sales within the next decade, however, it is estimated that within the car industry, the sale of electric cars will account for up to 85% of total car sales by the time the car industry begins to plateau as indicated by the graph above. Graph 1 indicates that by 2050, the estimated amount of gas propelled cars will decrease to only 10% of car sales. ENOVATE has taken the current amount of capital they have received and have used it to begin construction on an electric car factory. In addition, ENOVATE currently only has one car model produced which is a mid-sized SUV but they have plans for an all-electric luxury sports car which will be released by 2021. ENOVATE is positioning themselves to firmly penetrate the luxury electric car market which entrenches the company in the future of electric automotive manufacturers.  As you can see in the graph below, China has the most electric vehicle stock which sets the stage for ENOVATE to make a large return on their investment.[pic 1][pic 2][pic 3][pic 4]