Arc Boats Secures $30M Investment for Electric Boats

Arc Secures $30 Million in Series A Funding

Despite being less than a year old, the electric boat startup Arc has garnered significant investment. This includes backing from prominent venture capital firm Andreessen Horowitz, influential figures in the entertainment industry, and now a $30 million raise.

The Series A funding round was spearheaded by Greg Reichow, a former executive from Tesla who played a key role in the automaker’s initial manufacturing operations and is currently a partner at Eclipse Ventures.

Investment Details and Backers

Existing investors, including Andreessen Horowitz, Chris Sacca’s Lowercarbon Capital, and Ramtin Naimi’s Abstract Ventures, also participated in this funding round. Reichow will also assume a position on Arc’s board of directors, as announced on Tuesday.

To date, Arc has successfully raised a total of $37 million. This includes earlier investments from funds associated with Will Smith’s Dreamers VC, Kevin Durant and Rich Kleiman’s Thirty Five Ventures, and Sean “Diddy” Combs’ Combs Enterprises.

Growing Interest in Electric Watercraft

The substantial capital injection and the involvement of high-profile investors demonstrate a widening interest in electrification beyond traditional land vehicles. This sector has experienced a surge in private funding and notable public market debuts.

This trend is further evidenced by General Motors’ recent announcement of a 25% stake acquisition in electric boat company Pure Watercraft.

Arc’s Business Focus

This funding also serves as validation of Arc’s core business strategy: to fully electrify marine transportation. The company is initiating this effort with a limited-edition boat priced at $300,000.

Company Origins and First Product

Arc was co-founded by Mitch Lee, the current CEO, and Ryan Cook, a former engineer from SpaceX. Their initial plan involved the development and sale of electric watercraft designed for diverse applications and price ranges.

The founders initially concentrated on creating a specifically designed hull and custom-built battery packs. Their inaugural product is the Arc One, a 24-foot aluminum vessel generating 475 horsepower.

The Arc One can operate for 3 to 5 hours on a single charge. Production will be limited to fewer than 25 units.

Future Plans

While Arc envisions expanding beyond the production of a small number of high-end boats, the company’s immediate focus remains on the delivery of the Arc One.

The company’s long-term strategy includes developing and offering a range of electric watercraft to cater to various needs and budgets.