Mate Rimac will move the company’s headquarters outside Croatia due to the second round of financing

Given the impossibility of financing such projects in Croatia, he emphasized that the establishment of a venture capital fund should be of strategic interest to the country. Otherwise, there will be more and more examples of successful startups like Farmeron and Bellabeat, which have the potential to create quality jobs and export to the global market, but had to, at the request of investors, establish companies in the USA through which the entire business operates while only development remains in Croatia.

Rimac Automobili is preparing for the second round of financing, and due to it, it seems that they will have to move the company’s headquarters outside Croatia.

– We are still a Croatian company headquartered in Croatia, which we are proud of, and we are proof that success can be achieved here as well. So far, we have managed to resist the demands of investors, but we will probably have to accept what investors want and formally move the company’s headquarters abroad due to the second round of financing, where much larger amounts are at stake. But that is a normal thing  – said the founder and majority owner of the company, Mate Rimac, at the opening of the Cisco Connect conference in Pula.

Given the impossibility of financing such projects in Croatia, he emphasized that the establishment of a venture capital fund should be of strategic interest to the country. Otherwise, there will be more and more examples of successful startups like Farmeron and Bellabeat, which have the potential to create quality jobs and export to the global market, but had to, at the request of investors, establish companies in the USA through which the entire business operates while only development remains in Croatia. In the first round of financing two years ago, Rimac Automobili raised ten million euros, and now much larger amounts are expected. Two years ago, they employed 20-30 people, and today, together with Greyp Bikes, they are approaching the number of 200 employees.

Rimac presented the beginnings, development, and strategy of his company at Cisco Connect and provided insight into the development of the automotive industry. Since there were neither VC funds in Croatia nor did the state (as in the case of Tesla Motors and some others) encourage electric vehicle manufacturers, Rimac had to take a different path and develop all necessary parts and technologies in-house. This, Rimac emphasized, ultimately saved them, and today the core business of Rimac Automobili is the production and sale of various parts and technologies for electric vehicles, from cars to wheelchairs. Super-fast electric cars, the first Concept One and the recently presented Concept S, are their flagship products and a kind of showroom for R&D and the technologies they develop. Rimac Automobili will never, he said, produce large series and compete with large manufacturers like Volkswagen or BMW but wants to be the best manufacturer of sports cars and become synonymous with sports cars of the 21st century. They plan new car models, and their goal is to produce several hundred units annually, but the main focus is on technology development and selling to others.

– As far as I know, we are the most vertically integrated company in the automotive industry. However, car development is a long and complex process, and therefore there is a greater possibility that by commercializing our own technologies, we will grow into a large company. That is our strategy – said Rimac.

He pointed out that the automotive industry today is characterized by three trends: hybridization, electrification, and new mobility concepts, and he expects the greatest implications for the economy, the environment, etc., from autonomous vehicles. He believes that these vehicles will be safer, will put less strain on roadways and pollute the environment less, will enable cheaper driving, and will provide the opportunity to use the time while driving for something else. Because of all this, Rimac believes that autonomous vehicles will bring significant social changes, especially in large cities, similar to what smartphones brought in the last decade.

Given the new trends in the automotive industry (electric drives, autonomous vehicles, and new business models) and the assumption that four out of ten current companies will fail due to disruptive changes in the market, Rimac believes that this opens the door for new companies, models, and ways of thinking.

– We cannot compete in traditional industries, but why not try to seize the opportunity for Croatia to become a center of competence for new technologies in the automotive industry. I believe we have the potential for that. Regardless of our company’s interests, I will strive for a more serious automotive industry to be in Croatia and to create something better for all of us – concluded Rimac his inspirational lecture.