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Tech Moguls Supports GoodLeap’s Green Housing Push with $ 12 Billion Valuation

Entrepreneur Hayes Barnard says Americans will need at least $ 450 billion to turn their homes green in the next few years, and he wants to deliver it to them.

Barnard, a former CEO of SolarCity Corp., has raised over $ 1 billion in technology investment celebrities such as Michael Dell and Laurence Tosi over the past decade to grow financial firm GoodLeap LLC. In the September funding round, the company was worth $ 12 billion.

According to those who know him, the new capital has made the modest Bernard a “next-door millionaire” in the neighborhood of Austin, Texas. It’s also a resurgence for the 49-year-old who resigned from SolarCity’s Chief Revenue Officer in 2016.

Tesla Ltd

Take over a financially stressed company..

The US solar industry has been plagued by false starts, Increasing demand for energy-efficient homes-And for Environmentally friendly investment— Turned the tide, Bernard said.

According to bankers and investors, GoodLeap has become the largest rooftop solar finance company in less than two years by developing new technologies that connect lenders, consumers and vendors to install panels. The goal is to recreate within just a few years the modernization that took decades to reach the mortgage market.

GoodLeap provides lenders such as banks, insurance companies and hedge fund managers with software that can track the finances and customer satisfaction of each borrower. The app connects the installer to the lender to get loan approval during a sales call to the homeowner. Homeowners can use another app to track power generation, cost savings, and power sales to the local grid. The company plans to start lending $ 5.2 billion this year from $ 3.3 billion in 2020, people familiar with the matter said.

Many homeowners are looking to install solar panels to adopt cleaner power sources and adapt to climate change-related power outages and other turmoil.


Photo:

Nathan Flandino / Reuters

Today, Bernard wants to move into home improvement, from heat pumps to energy-efficient windows and artificial lawns. Financing Homeowner Efforts to Adapt For power outages, heat waves, and natural disasters Brought about by climate change..

Bernard and GoodLeap president Tanguy Serra, also a veteran of SolarCity, are competing for expansion before more established financial institutions focus on this area.Mortgage company

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August Cos. Announcing technology-driven push For a “green home energy solution” financed through a loan.

“The winning company is the one that bundles all the technologies,” said Bernard, a speech at Patois in Silicon Valley, “I want to double-click on it.”

GoodLeap needs money to stay ahead, and for now Bernard is circumventing the public stock market and its scrutiny and reporting requirements. Instead, he is courting an elite tech entrepreneur.

Investor and former CFO Toshi

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In 2018, I met Bernard at a British Columbia ski event hosted by venture capitalist Antonio Gracias. Bernard impressed Toshi on his hike with an interest in building a company focused on big issues such as sustainability, Toshi said. He invested in Bernard’s business in 2020 and joined Goodleap’s board this year.

Real estate owners in windy and sunny areas of the United States oppose the development of large-scale renewable energies. Researchers oppose that it could delay the transition to a cleaner economy. Photo: Aaron Yoda / WSJ

Bernard connected with Dell after moving to Austin, a city that Dell had long called his hometown. The increasingly fascinating Silicon Valley Émigré Like the founder of Tesla

Elon Musk.. This summer, Dell and Barnard took a walk on Lake Austin to get to know each other. They discussed the relative benefits of raising funds through GoodLeap, its potential investment in its charitable affiliate GoodPower, and personal or public equity offerings.

A few weeks later, Dell placed the largest order for a $ 800 million private sale of GoodLeap shares. In this round of funding, the company’s value was $ 12 billion, up from $ 4.4 billion in December and $ 1.5 billion in March 2020, people familiar with the matter said.

In a recent funding round led by Michael Dell, GoodLeap was valued at $ 12 billion.


Photo:

Richard Drew / Associated Press

One of the reasons for the recent capital increase, according to Bernard, is that GoodLeap is about to merge or acquire another solar finance company.

Bernard is publicly aware of the dangers of listing. SolarCity’s inventory more than tripled to about $ 85 between 2013 and 2014 as it dominated the installation of solar panels leased to its customers. The company held an annual event in Las Vegas for thousands of employees and culminated in an award show where Bernard gave a freestyle rap in honor of the winners.

However, SolarCity has borrowed to drive growth, including costly expansion into solar technology manufacturing, and its net loss almost doubled to $ 769 million in 2015, according to its annual report. became.Previous stock price fell to about $ 20 Acquisition of Tesla That was the catalyst for Mr. Bernard’s departure.

Raised by a single mother with three jobs in Cleevecore, Missouri, Bernard reorganized around a mortgage company called Lone Pal and began shifting the company to solar panels. According to analysts and investors, the new venture has circumvented SolarCity’s vertical integration strategy and instead built a software-driven market that connects industry participants.

Rob Camacho, co-head of Structured Credit at Blackstone Inc, said: Said.

The IPO would have given Good Leap access to hundreds of new investors. Funds raised by traditional IPOs, excluding direct listings and special-purpose companies, have already exceeded the full-year total. Major stock indexes remain close to record, investment funds are flooded with cash and are keen to buy into growing, profitable companies.

Banks have pitched GoodLeap a potential IPO valuation of well over $ 12 billion, which reached a private sale of shares this summer, people familiar with the matter said. Bernard turned to his mentor to help him decide what to do.

Toshi sent a text message to Bernard, “Your company, your terms, your time, your way.”

Write to Matt Wirz at matthieu.wirz@wsj.com And Corrie Driebusch corrie.driebusch@wsj.com

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Tech Moguls Supports GoodLeap’s Green Housing Push with $ 12 Billion Valuation

Source link Tech Moguls Supports GoodLeap’s Green Housing Push with $ 12 Billion Valuation

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