Lightning Systems raises $41M

LOVELAND — In an effort to ramp up production of its electric powertrains, Lightning Systems closed a $41 million fundraising round Tuesday morning, more than four times its previous total funding haul. 

In a press release, the Loveland electric vehicles company formerly known as Lightning Hybrids Inc. raised the funds in a combined equity, debt and working capital offering. The round was led by BP Ventures, the venture capital arm of British oil giant BP plc (NYSE: BP) and previous investors, along with a new contribution from Greenwood Village-based private equity firm Cupola Infrastructure Income Fund LLLP.

The funds will be used to increase production capacity and space so the company can clear its backlog of orders. In an interview with BizWest, CEO Tim Reeser said the company is leasing double its current floorspace at its Loveland campus and will hire 15 new staffers within the next three months.

“The order pipeline and the sales pipeline is there for us to achieve the numbers… but we have to go out and hire the new people, bring on the new facilities and bring in a lot of inventory and products to make the product,” he said.

The company has yet to report the fundraising round to the U.S. Securities and Exchange Commission as of Tuesday afternoon. Reeser said the company has raised about $15 million in the past, and still has $5 million in fundraising left to sell on this current round.

Lightning Systems builds electric powertrains for commercial vehicles such as cargo vans, trucks and buses, and both retrofits existing fleets and sells to aftermarket mechanics to install directly onto new vehicles.

In the company’s annual event last September, CEO Tim Reeser said he expects Lightning Systems to reach $50 million in revenue by 2021 compared to this year’s projected $6 million to $8 million in sales.

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