Is QuantumScape backed by Bill Gates?

QuantumScape is a start-up company within the electric vehicle industry, which is backed by Bill Gates’ Breakthrough Energy ventures.

QuantumScape, in September 2020, gained attention as it was confirmed that it was set to go public. The company’s additional attention was due to the fact that it is backed by Microsoft’s billionaire founder, Bill Gates. Gates reportedly invested an estimated $100 00 million in the company through his Breakthrough Energy ventures. However, Gates was not the only brand and business to back QuantumScape.

Other businesses reported to have backed the company going public included Volkswagen, Qatar’s Sovereign Wealth Fund, Stanford University, German auto supplier, Continental, and a selection of other Silicon Valley VC firms. The backing forms part of the current buzzword within the business acquisition and trade market, and that is special purpose acquisition company (SPAC).

SPACs have seen a rise in new private, startup companies going public faster than before. This is due to the big business and business people which can afford to plan for the future. Hence, the trend is seeing what is suggested as new, privately-owned businesses “of the future” going public through the backing of conglomerates.

The belief is that the conglomerates can wait to see a return on investment from their cash injections, and that duration is not a factor. If one were to take QuantumScape, which is a company aiming to corner the electronic vehicle market through producing solid-state batteries, should the batteries be successful, they will be fitted into electric vehicles, which, once the technology has been achieved, would have big returns for the SPACs involved.

Hence, SPAC backings are considered the new investment craze by big business and already successful business entities. However, for other people outside of the aforementioned demographic, the choice to do so is considered as high risk as there are no definite returns promised for at least 10 years or more.