Funding Refused By Paul Elio

[pistonboy]

I was told last year that complete funding had been offered but refused by Paul Elio because the investor wanted too much control over the company. The following post, in my mind, confirms it.

http://www.elioowners.com/threads/elio-in-greenbelt-md-may-18-2015.6074/

Page 1, post #8, item #4.

I do not believe the real problem is funding as we have been lead to believe, but rather the problem is control. Apparently funding is available if investors are allowed to share control in the company as is customary and reasonable. What is not available, is funding from investors who will let Paul Elio have complete control over the company.

How many times has funding been turned down by Paul Elio because he must have complete control? We would probably be having our vehicles on time if he did not insist on complete control.

It is completely reasonable and customary for investors of millions of dollars to expect a share of control in the company they are funding. What is unreasonable is for Paul Elio to expect them to give him funding without giving them part of the control. Perhaps he is afraid they would overrule him and not permit the elgin gauges. They would have that power and I am sure they would exercise it.

Paul Elio does not have much money to personally invest. He has said he was desperate a few years ago and applied at Starbucks and eventually worked as a roofer. Since that time, he has worked as a CEO of a startup company that has only borrowed money and produced no profits. I am sure his salary as CEO is not large. Again, Paul Elio does not have much money to personally invest. I suspect the investors attitude is something similar to ‘You want to completely control the millions of dollars we put at risk while you put only a few thousand dollars at risk?’ If the company went under, the investors would lose millions of dollars. What would Paul Elio lose?

I have always wondered why investors are not flocking to fund such a great idea. Now, I believe I know why. NDAs (nondisclosure agreements) are great for not letting the public know what is happening in funding discussions. I suspect Paul Elio insists on them. I am sure he does not want reservationist to know the reason they are not getting their vehicles is because he will not share power.

How does someone get the money for a company and maintain complete control? Government loans might be a way. The government loans the money but does not step in to tell the company how to run its day to day business. Crowd funding is another way. Crowd funding will consist of many small investors who probably are not investment savvy and for the most part will follow Paul Elio and let him make the decision.

Paul Elio is a smart engineer. He is a smart business manager. Now it looks like he is a smart finance officer. He may be able to pull this off. But then again, maybe not.

The Elio vehicle is a great idea. The Elio vehicle may rank with the Ford model T and the Volkswagen Bug. Europe’s approach to the economy problem is the Smart car. With great pride, I will point to the Elio vehicle as my country’s solution. However, I am not interested in making Paul Elio a mega millionaire nor one of industries’ movers and shakers. History remembers kindly the people who are creative, but less so the more wealthy or powerful they become.

However, right now, I simply want my vehicle. I do not like it being put into jeopardy because Paul Elio has a control issue.

 

[Gas-Powered Awesome]

Nothing like wealthy investors with their own egos to ruin a singular vision. More than one great company has been ruined by the demands of investors (*cough* GM *cough*).

If what you say is true (possible, but I personally doubt it even given the thrice-removed hearsay evidence), then good for Paul. I want him to have total control to keep the vision pure. I don't want it watered down with two doors, hybrid drive train, diesel, electric option, dealers, or any other nonsense. I want all-gas, direct sales, one door, manual, in Red Hot please.

 

[Smitty901]

No one is going to invest the kind of cash Elio needs with out terms.

 

[Gas-Powered Awesome]

We invested our money in Tesla and the primary terms were "pay it back with interest" (ATVM). That's all an investor should need. Anything more is ego.

 

[pistonboy]

I agree with Paul Elio's idea of design. I had heard potential investors wanted him to buy an existing engine and not develop a new one. Whether this is true or not, I do not know. I agree with Paul Elio to design a new engine. When the cost is distributed over many vehicles, the cost of development will be very small. This way they have an optimal design for this vehicle and they have complete control over it, availability and design.

Most of the money is needed to go into manufacture, not complete development. I believe if PE should complete development of engine, the vehicle, and its testing all the way through P30 and insurance testing, then bring in the big investors and share power the manufacture phase. The development would be complete and investors would not be likely to change it.

 

[skygazer6033]

Most investors who have hundreds of millions to invest want more hundreds of millions in return. The only way Paul can maintain the "big 4" of his vision is to maintain control. A big buck investor may want to compromise too much on price, mileage, safety or foreign components or production than Paul is willing to allow just for more profit. Personally I've hung in there so far and I intend to continue to do so. I sincerely hope Paul sticks to his guns on any comprise of the "big 4" just to get into production. This is a dream comprise and the dream dies.

 

[Farm Boy 2]

Need I mention Henry Ford, Thomas Edison, two inventors and very wealthy men. Ford was noted for wanting to control every aspect of his auto production and not tolerating outside interference. I think Paul is right, if it is true, to not lose control of the company he is trying hard to build. If you were building a house would you like it if the bank told you were and how to build your house, dictated what contractors and suppliers to use? Let’s just think about this, if a BIG MONEY investor came in and started wanting to change things, what would they be? Most likely it would be the subcontractors and suppliers to start with. BIG MONEY Investors have their fingers in a lot of pies, most likely they would push for ELIO to use company’s they or their friends have money in and not necessarily the ones that are the best fit or value for the car company itself. I say Paul is on the right track. It might not be the fast track, but I think it is the right track

 

[Elio Amazed]

I've said it before.
If the ship actually does start sinking sometime in the future...
I think there'll be an 11th hour offer, be it one investor or a coalition.
That 11th hour offer may well involve far less money and far more control.
To the point where PE will be a CEO who is really only a well paid consultant.

That hasn't happened yet, and certainly, by all indications, isn't happening now.
Personally, I wouldn't want the compromise unless and until it becomes sink or swim.
&%@$# dash or no &%@$# dash, although I still think that issue is a large blemish.

I don't anticipate having any major issues with my present vehicles in the next few years.
If major issues do arise with them, I'll simply do some more crafty and brutal used car shopping.
I sat down and deliberately researched what used car to buy, based on under-valuation and bang for buck.
After deciding on the most under-valued, sporty, decent model on the market that was within my price range...
I set out to find a special one.

One who's PO had invested money in making sure everything was right with the vehicle.
One who's PO had then found out the market would not give what he had anticipated for his efforts.
One that had been advertised at a fair price for some time and had garnered very little interest.

I had to wait a few weeks, but it happened as I knew it would.
I recently went back to CL and found that after two years...
My 'Stang had appreciated an average of $800 in market price.
It looks great, handles like it's on rails, rides nicely, is solid as a rock...
And purrs at me every time I turn the key.

So I'm selfish in saying it, but I'm not in a hurry.
I want everything about my Elio to be what was advertised to me when I went all in.
Including it being the most dependable, safest, economical, and best built vehicle possible.
I also still want it to be the best bargain mama earth has seen for quite some time.

 

[Rickb]

We invested our money in Tesla and the primary terms were "pay it back with interest" (ATVM). That's all an investor should need. Anything more is ego.

The ATVM is low interest venture capital to encourage innovation. The private venture capitalist has ego and requires more because they are interested in return on their investment. They would deserve a fair share interest in EM's future profits. I doubt they would have little interest in the day to day management decisions and/or controlling interest in the future direction of EM.

EM has ego and is profit driven too.

 

[Smitty901]

The Ship has been taking on water for some time . The only thing keeping it above water now is hope. Small investors will have nothing to say about what happens. Big investors will in any case at any company. If you do not understand that you know nothing about how it works. Any investment group that comes in will want to protect that investment.
Wake up call those evil investors are the ones that make things happen. Without them the dreamers just BS themselves and keep living in a dream world .
As a product Elio has a chance. but it takes someone in charge that knows how to more the product forward in the market place and not in the dream world. PE has done a great job in creating the dream , he seems to be unable to do any more.
If all of this about control is true witch I have doubts about the Ego that is killing ELIO is not investors but PE.