L R AS Published on Sunday 19 February 2017 - n° 180 - Categories:the American PV
Sungevity is now on probation.
Since its merger with a third party did not take place in December 2016, Sungevity has been on probation. Since its inception nine years ago, the company has
always been in deficit. It has relied on the development of software to generate estimates for solar installations without the need to visit the site. She delegated the installation and financing to third parties. The company focused on customer relations without investing in the capital-intensive parts.
Sungevity's market share peaked in 2014 at 2.5% and then fell to 1.6% in the third quarter of 2016. In total, the company toasted $850 million, including $200 million in equity. Hundreds of millions of dollars went with the software development. The other part was in personnel costs: Sungevity paid subcontractors and then paid people to verify the work done. This system was too expensive. So the company has software, but no live customers. If they sell the software, they have nothing; if they keep the software, it's useless!
Now, Sungevity needs to develop an operating plan that provides profits and positive cash flow, in order to attract a new investor who can get the business back on track. Is this feasible?
Green Tech Media of February 17, 2017
