Arc hooks another $30M in investment as EV interest spills over into electric boats
Arc is not even a year old and the electric boat startup has attracted investment from top VC firm Andreessen Horowitz, entertainment industry big wigs and now a $30 million raise led by an early Tesla executive who led the automaker’s early manufacturing efforts.
The $30 million Series A was led by Greg Reichow, the former Tesla executive who is now a partner at Eclipse Ventures. Existing investors — Andreessen Horowitz, Chris Sacca’s Lowercarbon Capital and Ramtin Naimi’s Abstract Ventures also joined. Reichow will also join Arc’s board, the startup said in its Tuesday announcement. 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.
The influx of capital and heavy hitting backers for the young company reflects broadening interest in electrification beyond a vehicle with two or four wheels — a sector that has been flooded with multimillion-dollar private funding raises as well as eye-popping debuts on public exchanges. (Earlier this week, GM announced it had taken a 25% stake in electric boat company Pure Watercraft.)
It’s also, of course, a validation of Arc’s particular business, which is to electrify everything on the water, starting with a limited-edition $300,000 boat.
Mitch Lee, who is CEO, and former SpaceX engineer Ryan Cook co-founded Arc with a plan 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.