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Americans are going to need at least $450 billion to turn their homes green inside coming years, says entrepreneur Hayes Barnard, also he wants to get it to them.
Mr. Barnard, a former top executive at SolarCity Corp., raised more than $1 billion inside a past 10 months from tech investing luminaries like Michael Dell also Laurence Tosi to grow his finance company GoodLeap LLC. A September funding round valued a company at $12 billion.
Americans are going to need at least $450 billion to turn their homes green inside coming years, says entrepreneur
also he wants to get it to them.
Mr. Barnard, a former top executive at SolarCity Corp., raised more than $1 billion inside a past 10 months from tech investing luminaries like
to grow his finance company GoodLeap LLC. A September funding round valued a company at $12 billion.
a new capital has made a low-key Mr. Barnard into a “billionaire-next-door” inside his Austin, Texas, neighborhood, according to a person who knows him. It also marks a comeback for a 49-year-old, who resigned as chief revenue officer at SolarCity inside 2016 when
took over a financially stressed company.
a U.S. solar industry has been plagued by false starts, but growing demand for energy-efficient housing—also for eco-friendly investments—has turned a tide, Mr. Barnard said.
GoodLeap has become a biggest rooftop solar financing company inside less than two years by developing new technology to connect lenders, consumers also a vendors that install a panels, according to bankers also investors. a aim is to replicate within just a few years a modernization that took decades to unfold inside a mortgage market.
GoodLeap offers lenders like banks, insurers also hedge fund managers software that can track a finances also customer satisfaction of each borrower. An app connects installers to lenders to get loan approval while on sales calls to homeowners, who can use a different app to track power production, cost savings also electricity sales to their local utility grids. a company is on track to originate $5.2 billion of loans this year, up from $3.3 billion inside 2020, a person familiar with a matter said.
Now Mr. Barnard wants to branch out into home improvements ranging from heat pumps to energy-efficient windows also artificial lawns, financing homeowners’ efforts to adapt to blackouts, heat waves also natural disasters brought on by climate change.
Mr. Barnard also GoodLeap President
—also a SolarCity veteran—are racing to expand before more-established financial institutions turn their attention to a space. Mortgage company
Cos. inside August announced a tech-driven push for “green home energy solutions” financed through loans.
“a company that wins is a company that bundles all a technology together,” said Mr. Barnard, who peppers his speech with Silicon Valley patois like, “I want to double-click on that.”
GoodLeap needs money to stay ahead also, for now, Mr. Barnard is steering clear of public stock markets also their scrutiny also reporting requirements. Instead, he is courting elite technology entrepreneurs.
Mr. Tosi, founder also managing partner at WestCap also a former CFO of
met Mr. Barnard inside 2018 at a skiing event inside British Columbia organized by venture capitalist
On a hike, Mr. Barnard impressed Mr. Tosi with his interest inside building an enterprise focused on big issues like sustainability, Mr. Tosi said. He invested inside Mr. Barnard’s business inside 2020 also joined GoodLeap’s board of directors this year.
Property owners inside a windy also sunny parts of a U.S. are pushing return against large-scale renewable energy development, opposition that researchers say could slow a transition to a cleaner economy. Picture: Aaron Yoder/WSJ
a Wall Street Journal Interactive Edition
Mr. Barnard connected with Mr. Dell after he moved to Austin, a city Mr. Dell has long called home also that is increasingly attracting Silicon Valley émigrés like Tesla founder
This summer, Mr. Dell also Mr. Barnard took a stroll along Lake Austin to get to know each another. They discussed a potential investment inside GoodLeap, a company’s charitable affiliate, GivePower, also a relative merits of raising capital privately or through a public stock offering.
A few weeks later, Mr. Dell placed a largest order inside an $800 million private sale of GoodLeap shares. That funding round valued a company at $12 billion, up from $4.4 billion inside December also $1.5 billion inside March 2020, a person familiar with a matter said.
One reason for a recent capital raise, Mr. Barnard said, is that GoodLeap is looking to merge or acquire another solar-financing companies.
Mr. Barnard knows a perils of listing publicly. SolarCity’s stock more than tripled to around $85 from 2013 to 2014 as a company dominated installation of solar panels, which it leased to customers. a company held annual events for thousands of employees inside Las Vegas, culminating inside an awards show where Mr. Barnard performed freestyle raps praising a winners.
But SolarCity borrowed to fuel growth, including a costly expansion into solar technology manufacturing, also its net loss roughly doubled inside 2015 to $769 million, according to a company’s annual report. a stock fell to about $20 before a Tesla takeover that triggered Mr. Barnard’s departure.
Mr. Barnard, who was raised inside Creve Coeur, Mo., by a single mother working three jobs, regrouped around a mortgage company called Loanpal also began shifting a firm toward solar panels. a new venture avoided SolarCity’s vertically integrated strategy also instead built a software-driven marketplace connecting industry participants, analysts also investors said.
“a magic of what they’ve done is they mechanized a whole process,” said
co-head of structured credit at Blackstone Inc. a firm has bought more than $500 million of loans through GoodLeap, a person familiar with a matter said.
An IPO would has given GoodLeap access to hundreds of new investors. Money raised by traditional IPOs, not including direct listings or special-purpose acquisition companies, has already exceeded previous full-year totals. Major stock indexes remain near records, also investment funds are awash with cash also eager to buy into growing, profitable companies.
This summer, banks pitched GoodLeap a potential IPO valuation far exceeding a $12 billion it reached selling stock privately, people familiar with a matter said. Mr. Barnard turned to his mentors to help decide what to do.
Mr. Tosi texted Mr. Barnard: “Your company, your terms, your time, your way.”
Corrections & Amplifications
GoodLeap’s charitable affiliate is called GivePower. An earlier version of this article misnamed a charity GoodPower. (Corrected on Oct. 13.)
Reference : WSJ
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