Arc is a year-old electric boat startup. As the EV industry spills over electric boats now, Arc has managed to attract investment from top VC firm Andreessen Horowitz, and the entertainment industry big wigs. Recently, it has managed to get a new $30 million raise. The raise was led by Greg Reichow, an early Tesla executive who led the automaker’s early manufacturing efforts.
Details on investors and investment of Arc
Greg Reichow, the former Tesla executive is now a partner at Eclipse Ventures. Existing investors, Andreessen Horowitz, Chris Sacca’s Lowercarbon Capital, and Ramtin Naimi’s Abstract Ventures also joined in. The startup told in an interview that Rainchow will also join Arc’s board. To date, Arc has raised $37 million, including earlier investment from the funds of Will Smith’s Dreamers VC, Kevin Durant, and Rich Kleiman’s Thirty-Five Ventures, and Sean “Diddy” Combs’ Combs Enterprises.
Electric boat and the trends in the EV market
The investors have brought an influx of capital to the young company. This proves the increasing interest in electrification of vehicles beyond 2 or 4 wheels. This particular sector(wheeled vehicles) has been flooded with multimillion-dollar private funding raises. We have even seen eye-popping debuts on public exchanges. Earlier, GM announced it had taken a 25% stake in electric boat company Pure Watercraft.
It’s also a validation of Arc’s particular business. A business to electrify everything on the water, starting with a limited-edition $300,000 boat.
Mitch Lee, CEO, and former SpaceX engineer Ryan Cook co-founded Arc. Their plan was to develop and sell electric watercraft at various price points and use cases. They started by focusing on the design and development of a purpose-built hull and purpose-built battery packs. Its first boat is the Arc One, a 24-foot aluminum boat that produces 475 horsepower and can run between 3 to 5 hours on a single charge. Arc will produce fewer than 25 Arc One boats.
Arc has plans that expand beyond building and selling a couple of dozen high-priced boats. But at least in the near term, Arc is focused on delivering the Arc One, the company said.