Dutch electric bicycle company VanMoof has announced one of the largest funding rounds ever in the electric bicycle company. The $128 million funding round could be a sign of more to come as e-bike sales are hotter than ever and investors continuously eye a piece of that action.
The $128 million funding round was the Netherlands-based electric bicycle company’s Series C round.
The company revealed that the investment was made in exchange for a minority share, which would value VanMoof at over a quarter billion dollars.
Combined with a previous funding round, VanMoof claims that the total of $182 million raised in two years makes them the “most-funded e-bike company in the world.”
They apparently barely edged out Rad Power Bikes for that title, as North America’s largest e-bike company hauled in its own massive $150 million funding round earlier this year and another $25 million round in 2020.
Compared to the value-oriented electric bikes that Rad Power Bikes produces, VanMoof has focused on a much sleeker, tech-infused product.
We got a chance to test out the company’s latest e-bikes and experience that tech firsthand.
As VanMoof explained, the new funding round will go toward helping the company further invest in developing the technology that has become a hallmark of its bikes:
“The funding will be used to expand production and reinvent the way in which hardware and software components are made and make high-quality, high-tech e-bikes more accessible to consumers.”
VanMoof has been on a tear as the e-bike industry has seen skyrocketing sales over the last 18 months.
VanMoof’s sales more than tripled in 2020, and the company capitalized on its success by growing its retail footprint from 8 to 50 locations around the world. The United States has been one of the fastest-growing markets for VanMoof, and the company plans to open a new Los Angeles store this fall.
While VanMoof’s electric bicycles used to carry premium prices well north of $3,000, the company’s continued investment in production has helped lower prices to around the $2,300 mark. While still a far cry above the more budget-oriented electric bikes we’ve often seen, VanMoof also offers a number of interesting and unique features not found elsewhere.
A 4-speed automatic electronic transmission helps riders stay in the correct gear for various inclines without needing constant manual adjustment.
An entirely enclosed chain keeps riders’ pants and ankles free from oil and grease, and adds to the recognizable, sleek design of VanMoof’s e-bikes.
The bike features movement alarms, GPS tracking and remote locking as theft deterrence, as well as an innovative rear wheel lock that can be easily engaged with the toes when dismounting the bike. A simple kick at the rear axle locks the wheel, making a would-be thief’s quick getaway much harder.
VanMoof also holds the unfortunate honor of being one of the most-copied brands in the e-bike industry. The iconic frame design has found its way onto other electric bicycles from B2C companies and even a new e-bike built by one of the largest scooter-sharing companies in the world as it made a new foray into electric bicycles.
VanMoof is also the originator of the “Television box” trick in the e-bike shipping industry. They were the first to print a picture of a large screen TV on their bike boxes as a way to get shipping companies to treat the bikes better en route, resulting in fewer damaged bikes. Now that’s a standard practice adopted by many leading electric bicycle manufacturers on their own e-bike boxes.
VanMoof has been setting industry trends for years – now imagine what they can do with an extra $128 million in their pockets.
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