How much do our values and vision mean to us? And how much do we care about finances i.e. getting money? So you ran out of funding? On the subject of funding we may have to go back to the beginning of Sono Motors. We are in the year 2016, the concept Sion and Sono Motors was still completely new and not yet on the market. Then the founders have started a crowdfunding campaign. That means they started into the market and wanted to test whether this product, whether the Sion, was appealing for the market and are people willing to pay money for it. We collected 850.000 € at that time. So really a considerable amount for the initial stone and were able to build the first prototypes with this money. Then we could take the next steps with test drives and development etc. Of course after the crowdfunding campaign we knew: “Okay, there is a lot more to come!” That means we chose the classic steps of start-up financing. So then we went through various equity rounds where investors participate in the company and it started with three business angels – who joined in 2017. Companies or families who loved our values and our vision which is the reason, why we were a good match. Then we did two more financing rounds a public campaign in 2017 on “Seedrs”. Here we collected 1.6 Mio €. Then end of last year – end of 2018 / beginning of 2019 another campaign. Here we collected 5.6 Mio € with a company valuation of 110 Mio €. Now, if you look on our funding history, it’s actually easy to tell, that we were on a very good track. So we first had the business angels and we saw that the valuation of the company has more than doubled – per round. These are actually all signs that we were on the right track and that we were actually well positioned. It is not enough just to talk with two investors! I work at Sono Motors for over two years now and we’ve had dozens of investor meetings since then and it always has been relatively elaborate. We have checked okay who’s right for us? In which projects have they invested in so far? Then you build presentations for them, have a first meeting, a second meeting often together with the founders. But in the end I attended every meeting and got quite a few requests. What’s the most annoying question from “traditional investors”? I think the most annoying question was always: “What are you doing differently from Tesla?” Yes, we are also an electric car manufacturer. But completely different. Other values, other technology – completely different motivations that drive us. Of course, also a different customer group, different price segment. So many reasons! It was always interesting that this question came up so often. What’s so difficult about it – there are enough apps that get money thrown after them? The characteristics of Sono Motors are a bit different in the financial world, different than those of software companies. Mainly because a) It is an automotive company and automotive companies haven’t been incorporated, as you know, not very often in recent years. So perhaps in the last few years a bit more through electromobility, but not in all the decades before. What that means for the financial market or for the investor market is, that investors are often reluctant to invest in this kind of business, because they’re not familiar with it. The second point is, that we are capital-intensive compared to a software start-up. That means a software needs maybe 10-20 Mio €, depending on what it is, to develop a finished product and bring it into the market. On the other hand we need 255 million € up to series production. I think it’s good that you are sticking to the idea and haven’t sold your company to a greedy investor. So the project remains untouched. Over time it became clear to us, that if we follow this path, this funding path, then the Sion would not come to the streets. We therefore had to think of an alternative that would be compatible with our values and our vision and that was clearly the community. With the community we have the opportunity to to stick to our values and set up the Sion and Sono Motors, so that we can build a sustainable long-term business without relying on short-term financial targets or “return on investment”. Maybe Elon Musk can help you. Tesla does not have a budget car yet. We want to prioritize going with the community, but we leave it open of course to continue talking to investors who represent our values that we can identify with. Is it true, that you still need 255 Mio € for production, and that the 50 are only the beginning? Better ask before simply believing. #staysono 255 Mio €. I would like to put this first of all in relation to what we do 255 Mio € sounds like a lot at first but you have to consider that OEMs, other automotive companies, spend almost 1 billion € on vehicle development – just in comparison. We have certain strategies why we know 255 Mio € is enough. Stop wasting money on useless things!!! I’m checking for what we’re spending our money and how we spend it, because of course it’s important to us that we spend the money reasonably and above all responsibly. They had already at least 12 Mio € and didn’t make much out of it. Are the 255 Mio € really enough? They should shrink to a healthy size first. So far we have spent a little over 23 Mio € and you can see clearly that 60%, i.e. the majority of it, has flown into the development of the Sion. We have always ensured that we, as an organization, are as lean as possible. That means having a lean corporate structure. Then you can see the second largest block here. There’s staff costs with 23%. Now some people might say: “23% that is almost a quarter – not so little!” But we shouldn’t forget that’s the number we’ve been putting into building the company since 2016. By now we’re almost 100 people and that’s why the block is a bit bigger. What you can see here is that we have spent extremely little on things like rent and marketing. We have abstained from things like luxurious offices or furnishings. What unfortunately can’t be avoided, especially when setting up an organization, are things like lawyer’s fees, notaries, tax consultants or patent attorneys, that are particularly important to us for topics like viSono, breSono. These are costs which unfortunately cannot be avoided. Stop wasting all your money on marketing. Better work on the Sion! When it comes to marketing, also a relatively small position, we have paid attention to do as much as possible in-house which means we have a great internal team that does an outstanding job. This saves us expensive agencies. In my opinion, marketing must now put everything on the line in order to regain confidence. This includes the financial side as well as the technical and organizational part! Some people might think now: “Wait a minute, you just said you spent 25 Mio € and you still have 255 Mio € to spend. Does that mean you’ve only developed 10% of your vehicle?” Of course this is not the case. Why is the number, that will come, so much higher than the one we’ve spent so far? Because now all the expensive investments are coming. That means in tools and in the construction of the production line. These are huge amounts that are still to come. For what do you use the 255 Mio €? #staysono #SEV Here on the chart you can see how these 255 Mio € are divided. You can also see that more than half of this – approx. 55% – goes into the construction of tools and in the setup of the production line. As already mentioned this is by far the largest block that still lies ahead of us. We also have costs on the development side. Above all on the testing side. On the one hand for the components and on the other hand for the complete vehicle. Here you can see the number for the overall vehicle development. It is also a very high amount. Again, that doesn’t mean that we still have so much to develop, but what’s included in here are the prototypes for the crash tests for example. This is of course a large block and that’s why we’re seeing such relatively large numbers here. Quality management shouldn’t be ignored. Now you can also see the topics homologation and quality here which look relatively low at 2%. However we do ensure that we have all the quality standards like any other automotive manufacturer. You can also see the amount of 6.2 Mio €. That’s not so little money after all. And that is why we are definitely on the right track. Anything missing? Morning! We are here in Hamburg. Today is the third event. Yesterday we were in Cologne and before that in Stuttgart. It starts in almost half an hour – the third event. Awesome also, what happened in the last days! But we are here, because in the last few evenings there have been several topics that have come up again and again. We simply want to address them directly. With regard to the threshold. The threshold of 50 Mio € means for everyone who get a reservation or make a restock: The money will only be due when we reach the 50 Mio €. That means only then you will get a payment link and only then can you complete the payment. Important! Because that wasn’t commented 100% correctly. We’ll ensure that now! The second thing is, that we are dependent on any amount to reach the 50 Mio €. That is also one thing that has been commented on with the 2000 full down payments. But just to show you this example! Number 3 – Full financing. Regarding full financing we have also received a lot of questions. What happens after the 50 Mio €? Therefore we have linked a PDF file for you. You can see it in the comments below. There is the whole strategy to demonstrate and show transparency and what we’re up to. If you have any questions, please feel free to comment. We also can publish an extra video about it. But for now THANK YOU from Hamburg. THANK YOU! We have collected almost 4 Mio € after 72 hours. INCREDIBLE – we are really impressed! That gives us hope! YOU give us hope! MUCH THANKS! THANK YOU, TO ALL OF YOU!