Elon Musk’s startup, Whats a Entrepreneur?, has raised more than $1.5bn in a new round
Elon Musk has been busy getting his ideas off the ground.
But this week the self-proclaimed billionaire made news for a new venture, which was also backed by another prominent venture capitalist, Charles Schwab.
The company, Whits, was spun off from the startup accelerator startup Accelerate Capital in December, but is still looking to raise money.
It raised $1bn last year, but the investors were able to raise $1m in new capital from investment firm Sequoia Capital and the private equity firm KKR.
The deal has been described as a “huge, unexpected, transformative, historic deal”, with Musk having previously been approached by investors before the deal was finalised.
However, Musk himself has not disclosed the details of the deal, with the media still having to confirm that the deal has taken place.
“I’m excited about the future of Whits,” Musk said.
“Whits is a true startup that I believe has a great future.
I’m excited to be a part of it and I’m looking forward to working with Sequoias team.”
Tesla, which is also the parent company of Musk’s SpaceX, has been struggling to grow its business.
Whits CEO, Adam Horowitz, said the funding would allow the company to focus on the business it has set out to do, which includes helping to drive electric vehicles.
“We have built a successful business that has generated more than a million sales in a very short period of time and we are now focused on making it profitable,” Horowitz said.
Tesla said the $1 billion investment was in addition to the $600m raised by its former investor Sequoires investment fund earlier this year.
“The funding will allow us to expand our product line to include a range of Tesla-designed, built-to-order vehicles, which will be delivered in time for the Model 3 launch in 2020,” Musk wrote in a blog post.
“As we accelerate the development of the product, we will focus on delivering the greatest quality product possible.”
Whits has also recently received a $1 million loan from the National Endowment for the Arts.
The new funding comes as Musk has also been working to raise more money for his other startup, SolarCity.
Tesla’s $5bn capital raise in March was the largest for a single venture capital fund.