Arc Boats has raised a further US$70 million which will enable the company to expand into more cost-effective, higher volume models.
The funding means the company has now raised more than $100 million to date, having previously raised a $30 million round in November 2021.
Arc has produced fewer than 20 of its $300,000 battery-electric boats, Arc One, which have sold out – the last of which will be delivered this autumn.
The model – a 24ft aluminium boat – incorporates a battery pack that is around twice the size of that in a Tesla electric consumer car that is capable of remote software updates.
“The Arc One was a bootstrapping tool,” said co-founder Mitch Lee, adding that gave the company a jumpstart on production and intellectual property and helped it build out its brand. “This this round of financing is really to get us into mass manufacturing of a wakesports boat that is actually designed to help substantially fund our operations. Our goal as a business is to make better boats and sell them for a profit.”
The Arc One produces 500hp and can run between three to five hours on a single charge.
The boat is also equipped with software — wireless updates are possible — and modern touches like a touchscreen.
The company now plans to introduce a new model for 2024, designed for wakeboarding, wakesurfing and other watersports such as tubing.
Arc will also move into a larger 150,000sft facility in California later this year and will continue to design and build its boats (and the software) in house.
Mitch and his co-founder Ryan Cook, a former SpaceX engineer who is also chief technology officer, founded Arc in January 2021 with a plan to develop and sell electric watercraft at various price points and use cases. The Series B round was led by Eclipse, that focuses on start-ups, and included existing investors Andreessen Horowitz, Lowercarbon Capital and Abstract Ventures, as well as new backer Menlo Ventures.