Vancouver’s 7 Generation Capital gets $20M injection from Spring Lane Capital to finance commercial EV projects
The investment in 7Gen is meant to drive the development of commercial EV charging infrastructure throughout Vancouver and Canada.
7 Generation Capital, a Vancouver startup working to enable the adoption of electric vehicles through turnkey fleet electrification projects, recently received a $20 million endorsement for its vision from Spring Lane Capital.
Spring Lane Capital is a private equity firm focused on providing project capital for sustainability solutions in the energy, food, water and waste industries. The equity investment in 7Gen is meant to drive the development of commercial EV charging infrastructure throughout Vancouver and Canada.
"Fleet managers see the opportunity and challenges on the road to electrification," says 7Gen CEO Frans Tjallingii. "7Gen's role is to make their journey easier and financially attractive. Working with Spring Lane, we can bring capital to the equation that helps us provide an offering that is longer term and provides our customers with the structure to be able to capitalize on the savings on maintenance cost and energy that electric vehicles bring. From day 1, it has been great working with Spring Lane. They are pragmatic and, besides looking out for the interests of their investors, are also really committed to our long term success."
7Gen’s pitch: The company provides a unique value proposition as a one stop shop for commercial fleet operators, offering assistance with costing and implementation, access to vehicles and charging infrastructure, as well as ongoing support and maintenance in one convenient package.
The bigger picture: While the commercial EV market is still in its infancy and most companies have yet to incorporate EVs as core parts of their fleets, commitments to electrify are growing. Due to a variety of factors—mainly vehicle availability, corporate net zero commitments and carbon pricing signals—electrification of last-mile delivery vehicles and other fleet vehicles is on the cusp of substantial growth in North America.
The opportunity: 7Gen is positioned to take advantage of this growth as one of the first movers in the space in Canada.
The money talks: "We are on the cusp of widespread adoption of electric vehicles by commercial fleets, driven largely by the arrival of new vehicle models and corporate decarbonization targets," said Nathaniel Lowbeer-Lewis, Vice President, Canada for Spring Lane Capital. "This transition represents an enormous market opportunity and unlocks avenues for new types of institutional capital to enter this dynamic space, as corporations look for holistic service providers to help them navigate the complexity of fleet conversion. 7Gen's unique model adds significant value for fleet operators thereby supporting the potential for higher costs of capital. We are also extremely impressed with 7Gen's leadership team led by Frans Tjallingii who brings deep experience in corporate logistics and operations, technology and entrepreneurship. We anticipate our investment will help 7Gen catalyze the electrification of commercial fleets in Canada and beyond."
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