E-bike startup VanMoof raises $13.5 million for global expansion
Dutch e-bike tech scale-up VanMoof, has raised approximately $13.5 million from Europe’ top venture capital firms Balderton Capital and assembly partner SINBON Electronics.
It is betting on the newest investment to scale international operations to meet rising demand. The investment follows the launch success of the highly anticipated new electric VanMoof S3 & X3 bikes.
With social distancing the new reality, demand for high quality e-bikes is on the rise. Bikes are seen as an increasingly dependable mobility option compared to public transport. And governments across the globe are responding with new cycle initiatives.
New York City just committed to adding protected bike lanes across Manhattan and Brooklyn. Berlin recently implemented a one mile bike lane along a major road. And Milan will introduce a five mile cycle lane to cut car use after the lockdown.
New York City's Department of Transportation reported a 50 per cent increase in cycling compared to this time last year, and London bike stores report a surge in business after the government labelled them an essential service. And in Philadelphia cycling has increased by more than 150 per cent during the COVID-19 outbreak. This worldwide trend supports VanMoof’s belief in the potential of e-bikes to revolutionize city travel.
Taco Carlier, co-founder, VanMoof: “It’s a unique time to build such a meaningful partnership. Not only do we appreciate this vote of confidence from an investor with deep sector experience, it’s a great sign that investments are becoming greener, shifting away from fossil fuels and towards e-mobility.”
VanMoof’s 10-year innovation legacy has earned its reputation as one of the most disruptive brands in the international bike industry. The recently launched VanMoof S3 & X3 offer massively improved performance and technology at just 60% the price of their predecessors.
The radical entry price is the result of a tipping point in scale and VanMoof’s hyper-efficient manufacturing and distribution system. Thanks to a partnership with SINBON Electronics, VanMoof has been able to take complete ownership of the supply chain. Combined with a direct-to-consumer sales model, this allows VanMoof to produce e-bikes at a more affordable price than ever.
Colin Hanna, Principal, Balderton: “VanMoof produces a category-leading product in a rapidly growing market that is changing the world for the better. We believe that the quality, community, and experience of VanMoof will make them a household name from Tokyo to Berlin. Taco and Ties have created a very special company that builds on a rich Dutch bicycling tradition, and carries it into the future. Tim Bunting, myself, and the entire team at Balderton are thankful to join the ride.”
The investment round will enable VanMoof to further capitalize on its position as a leader of the e-mobility industry.
The success of the VanMoof S3 & X3 have seen sales develop at over twice the speed of any previous launch in the company’s history. VanMoof has entered the scaleup hypergrowth phase in the last two years, quadrupling €10 million 2018 revenue to nearly €40 million in 2019.
With sales consistently 20 per cent above target throughout 2020 so far, VanMoof is well on its way to pass the projected annual revenue goal of €100m.
The funding by Balderton and SINBON comes after a series of record-breaking crowdfunding rounds and marks the largest investment VanMoof has received to date. It furthers the bike brand’s strategy of partnering with the most established VC investors and, with the support of a global community of riders, all parties are invested in the company’s ultimate goal of getting the next billion on bikes.