The Koerner Office - Business Ideas and Deep Dives with Chris Koerner - 043: How I Built a $110 Million Car Business at Age 30

Episode Date: October 17, 2023

Today, we're delving into the fascinating story of SparkCharge, a company that turned a simple college idea into a $110 million success story in the electric vehicle industry. We'll be uncovering the core principles that fueled SparkCharge's remarkable journey.In this episode, we'll explore how identifying critical problems and offering innovative solutions became the cornerstone of SparkCharge's success. We'll discuss the strategic funding strategies that allowed the company to thrive and the vital importance of continuous innovation and adaptation in today's ever-changing market.

Welcome to Startup Gems, where we find undiscovered startup growth hacks, stories, and case studies from every random nook and cranny of the internet. Whether you're a seasoned entrepreneur, an aspiring startup expert, or simply someone seeking inspiration, startup gems is your source for the stories that ignite the flames of innovation. Hi, I'm your host, Chris Kerner. And today we're delving into the fascinating story of Spark Charge, a company that turned a simple college idea into a $110 million success story in the electric vehicle industry. We'll be uncovering the core principles that fueled Spark Charges' remarkable journey. In this episode, we'll explore how identifying critical problems and offering innovative solutions became the cornerstone of Spark Charges' success. We'll

discuss the strategic funding strategies that allowed the company to thrive and the vital importance of continuous innovation and adaptation in today's ever-changing market. Let's jump into the story of Josh Aviv, a guy who graduated from college and within a year, secured 500 grand in funding for an idea he had while sitting in class. Seriously, that's what happened to this 30-year-old, the founder of Spark Charge. The idea was simple, and it all started when his economics professor threw down a challenge. Solved the problem of infrastructure for electric vehicles. Josh was the only one who showed up to discuss it back in 2014. Fast forward eight years and lack of EV charging infrastructure remains a top concern among potential electric vehicle buyers with range anxiety and the

lack of charging stations causing headaches. That's where Spark Charge comes into play, offering on-demand charging for electric vehicles. You can schedule when and where you want your vehicle charged, select your desired range, and with a simple push of a button, it's brought right to you, just like ordering food from Uber Eats or Grubhub. Now Josh's journey is marked by three important numbers, $4,500, which he won in his first pitch competition, 500 grand in initial funding from his first investor, and a million, representing the number of miles Spark Charge has delivered to its customers. So how did Josh turn a college idea into a $110 million company? Let's find out. Josh grew up in Dallas, Texas, and the entrepreneurial spirit was always a part of his life,

thanks to his grandfather, who ran his own shipping and logistics company. Josh's path took him to Syracuse University, where he majored in economics. He didn't plan on starting a business, but an environmental economics class, taught by Professor Peter Wilcoxen, changed everything. They discussed the challenges of the electric vehicle markets infrastructure, and that's where Spark Charge was born. To get things rolling, Josh entered Syracuse University's pitch competition and secured $4,500 in 2017, and he managed to raise about 150 grand from various competitions. In the same year, he officially incorporated his company, the name Spark Charge was chosen to convey the concept of quick, on-the-go electricity. Now, to charge electric vehicles, he had to create a

device which became known as the ROTE. This device consists of a charger and modular batteries, and you can connect these modular battery blocks together to increase the range that goes into your vehicle. It's come a long way since its early prototypes, and the ROTI version 3 can now deliver up to 200 miles of range at a time. Funding started to flow in 2018 when Josh connected with Point Judith Capital, securing about half a million dollars. The big break came when he appeared on Shark Tank in 2020 and scored a $1 million investment from Mark Cuban and Lori Greiner. As funding grew, the business expanded and improved the Rode's technology. In 2023, Spark Charge had raised over $30 million, making the company worth around $110 million. While the revenue numbers aren't

public, they're on track to bring in $10 million this year. The heart of their business is their currently app, allowing users to have a charge delivered to their location by inputting their car's details and desired charge. Subscribers pay a monthly fee between $5 and $30 and a per kilowatt hour cost, similar to filling up a gas tank. This service is incredibly convenient and cost effective. Spark Charge currently operates in 121 cities with plans to expand to more locations. They've partnered with Kia motors to provide new Kia EV buyers with two months of complementary currently service. In addition to mobile charging, Spark Charge sells the ROTE to companies with electric fleets. They've also developed a fixed charging station, the Rode Version 3 hybrid, which can be installed in

under an hour, saving time and costs. Josh believes that mobile charging will play a vital role in the growing EV marketplace, particularly as the U.S. invests in EV infrastructure under President Biden's bipartisan infrastructure law. So there you have it. Josh Aviv's journey from a college idea to a $110 million company, making EV charging easier and more accessible for everyone. His vision, determination, and innovation have played a significant role in shaping the future of electric vehicles. Let's now dive into the story and uncover the key principles of business that led to Spark Charge's remarkable success. Principle 1. Identifying a critical problem and offering a solution. Spark Charge's journey began with a fundamental principle, identifying a critical problem and offering a solution.

founder Josh Aviv recognized the pressing issue of electric vehicle infrastructure, notably the lack of charging stations. He didn't just complain about it. He set out to solve it. For any business owner, the lesson here is clear. Success starts with addressing a problem that affects your target audience. Conduct thorough market research to identify pain points and then offer a solution that effectively addresses those issues.

Your business's value proposition should revolve around solving a problem or fulfilling a need. Principle 2, Strategic Funding and Investment. Another crucial principle that fueled SparkChard's success was strategic funding and investment. Josh Aviv didn't just rely on one source of funding. He tapped into various channels from university pitch competitions to venture capital firms and even a shark tank appearance. This diverse funding strategy enabled the company to grow and develop its groundbreaking technology. Every business owner can benefit from this approach. seek out different avenues for funding such as grants, competitions, angel investors, venture capitalists, or crowdfunding,

diversify your sources to reduce risks and increase your chances of obtaining the necessary capital to fuel your business's growth. Principle three, continuous innovation and adaptation. The final principle that contributed to SparkCharge's success was a commitment to continuous innovation and adaptation. The Rodee, SparkChard's signature device, started as a simple prototype. and evolved into a cutting-edge solution capable of delivering up to 200 miles of range. This innovative spirit allowed the company to stay ahead in the fast-paced EV market. For any business owner, the message is clear. Innovation is the key to longevity.

Regularly assess your products or services, listen to customer feedback, and adapt to market changes. Don't become complacent. Stay agile and innovative to keep your business relevant and competitive. So there you have it. the three fundamental principles of business that propelled spark charge to success, identifying and solving a critical problem, strategic funding and investment, and continuous innovation and adaptation. No matter the industry, these principles can guide any business owner toward their own path to success.

Thank you for being part of today's adventure through the world of startups and innovation. Did this episode ignite any fresh perspectives or ideas? Share your reflections and favorite takeaways in a review wherever you're listening. now. Remember to stay curious, continue to forge your own path, and subscribe and follow startup gems to be the first to access stories that will fan the flames of your entrepreneurial passion.