CAPITALI$M 101

Bill Gates-Backed Battery Tech Company Files For Bankruptcy Amid 9% Decline In Energy Sector Investments In 2023


Caleb Naysmith
Thu, 16 May 2024 

Bill Gates-Backed Battery Tech Company Files For Bankruptcy Amid 9% Decline In Energy Sector Investments In 2023

Ambri Inc., a Massachusetts-based company specializing in battery technology and supported by prominent investors such as Bill Gates through his company, Gates Frontier, has filed for Chapter 11 bankruptcy protection.

The company, under a stalking horse purchase agreement, aims to secure higher bids to fund its operations during the sale process, expected to conclude by July 2024.

"Ambri continues to make progress on advancing cell technology into its 3rd generation and moving towards its objective of establishing a commercial business," said Dan Leff, Executive Chair and President of Ambri. "We are taking steps to build on this progress by strengthening our financial position and working with our lenders to support our future success."

The decision to declare bankruptcy was made during a special board meeting on May 3, with the official filing occurring on May 5 in the U.S. Bankruptcy Court for the District of Delaware.

Ambri was "founded with seed money from Bill Gates," after Gates saw the Leff's online lectures at Massachusetts Institute of Technology in 2009 and "mentioned if there were a startup company based on the liquid metal battery research, he would be interested in helping fund the company," according to their website.

In addition to Gates's company, who invested via his $40 billion investment firm fund, Gates Frontier, Ambri also attracted investments from firms such as Paulson Partners, and Reliance New Energy. The company raised $211 Million, according to Crunchbase.

Despite raising such substantial amounts from investors since they were founded, Ambri faced difficulties securing additional funding in 2023 for its Series F round. Their attempt to raise $50 million in financing fell through when a potential $8 million investment was withdrawn, leading the company into financial distress.

Ambri’s technology, which revolves around patented liquid metal battery innovations with over 103 issued and pending patents, represents a significant advancement in energy storage solutions. However, the company struggled to transition from research and development to market viability.

According to Global Ventures, Energy startups saw a 9% decline in corporate-backed investments in 2023 compared with 2022. This trend reflects a broader cautious approach among investors due to uncertain market conditions.

"In 2023, we have really slowed down our investments, waiting for the markets in cleantech to follow the rest of the VC sectors, but suspect it still has some way to go (down). I do believe investment from us might pick up again by H2 of 2024," says Geert van de Wouw, the head of Shell Ventures.