Better Place founder Shai Agassi. Photo: Eirik Solheim.

The once-promising electric car company Better Place filed for bankruptcy this week in a Tel Aviv court, Israel Hayom reported.

After failing to raise the necessary capital to stay afloat, Better Place’s leadership decided to liquidate the company.

Founded in 2007 by Israeli entrepreneur Shai Agassi, the company developed a breakthrough system that allowed drivers of electric vehicles to swap out batteries at various electric charging stations. Customers could also buy subscriptions to purchase driving distance similar to how customers buy minutes for cell phone airtime. But after launching in Israel and Denmark, the company had difficulty keeping costs down.

“Unfortunately, in the past few months we have seen that the rate of entry into the market was not as the company had thought and does not allow for its continued operation and existence,” CEO Dan Cohen posted on the company’s Facebook page.