Lotus F1 proves VC money can work in F1

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We’ve spoken in the past about the concept of venture capital companies owning Formula One teams. There’s nothing wrong with it as long as the team can generate revenue, sponsors and performance. That’s something Lotus F1 has been able to do since Genii Capital purchased the team and 2012’s terrific 4th place finish in the Constructor’s Championship, chances are they will get a nice, fat check for their performance as well.

Lotus F1 has been a pleasant surprise for many F1 fans from its adventurous spirit in hiring Kimi Raikkonen to the team’s ability to stay within striking range of the top teams through the design and construction of a very competitive car at the hands of very talented staff. They’ve also been a pleasant surprise in the way they’ve managed to secure the sponsorship of Microsoft, Unilever and Coca Cola which are major players in the world of packaged goods and software. It’s very impressive.

Under the leadership of F1 newbie, Eric Boullier, the team have taken up the mantle where Renault, its former incarnation, left off. As for Genii Capital boss, Gerard Lopez, there are no desires to sell the team as he told Gazetta dello Sport as quoted by AUTOSPORT:

“When we bought the team we had 75 per cent of the shares, and then we moved to 100 cent,” said Lopez.
“But we have always said that, if there are investors who want to enter with some shares, we are ready.

“I have never wanted to sell the team because for me, for Genii Capital, F1 is a fine platform to develop business. With the sponsors we talk not only of the advertising that goes on the car, but wider business too.”

That’s good news as we have worried about Genii’s ability to fund the teams operation and car development throughout the year. F1 is a very expensive sport and so far, Genii Capital have been able to fund Lotus F1 to a 4th place finish. Let’s hope the success continues as this is a terrific team staffed with wonderful people.

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