Advanced Equities the Chicago based firm that raised money for Bloom Energy and Fisker is going out of business
This operation raised money from wealthy private individuals who thought they were getting a great deal following Al Gore’s and Colin Powell’s lead in being involved in one or both of these Kleiner Perkins funded companies. Many of my readers were mad with me for castigating Colin and lambasting Al. Now their thermodynamic house of cards built with these two gangrene companies is collapsing.
The Forbes article linked above also states the following:
“In September, Advanced Equities with misleading prospective investors on a pair of private placements for private fuel cell maker Bloom Energy. Among the lies were that the company had more than $2 billion in order backlogs (it only had $42 million) and that it had a $1 billion order from a national grocery store chain (it was only $2 million). AE settled the charges by, among other things, agreeing to pay a $1 million penalty.”
The Forbes article goes on to state “I have also heard rumors that AE recently received subpoenas related to its fundraising efforts for another well-known cleantech company, but have not yet been able to get confirmation.” The Green Machine asks Could this be Fisker?
Also stated in the Forbes article is the implication that Advanced Equities raised money for companies owned by Vinod Khosla. I have blogged about Vinod being involved with Range, Calera, Kior and Amyris who are failed or soon to fail companies.
My brother and my nephew won’t read my blogs as they think I am a right wing nut. A person I mentored has asked to be taken off the distribution list of my blog because he thought I was outrageous to question Colin Powell’s green intentions. I have been punished for my heartfelt belief that Bloom and Fisker are thermodynamic fakes. But guess what? In the end the second law of thermodynamics prevails and having Al Gore, Colin Powell, John Doerr, and T J Rogers in your company simply won’t make junk good.
Advanced Equities is the first shoe to drop. Watching this all unfold is going to be fun. The photo is of the burned out and flooded Fisker Karmas at Port Newark post Hurricane Sandy. For Fisker Sandy was just the beginning of the end.