Will Smith, Kevin Durant & Diddy Invest in Electric Boat Startup Arc
Arc Boats Secures Funding from Entertainment Industry Leaders
Arc, a relatively new company established just ten months ago, aims to revolutionize marine transportation through electrification. Beginning with a limited-edition vessel priced at $300,000, the startup has successfully attracted investment from prominent figures within the entertainment sector.
Having completed a seed funding round in February, spearheaded by Andreessen Horowitz, Arc has welcomed additional investors to its portfolio.
New Investors Join Arc’s Vision
- Will Smith’s Dreamers VC
- Kevin Durant and Rich Kleiman’s Thirty Five Ventures
- Sean “Diddy” Combs’ Combs Enterprises
This strategic investment round, as described by co-founder and CEO Mitch Lee, elevates Arc’s total funding to over $7 million. Early support also came from Chris Sacca’s Lowercarbon Capital and Ramtin Nami’s Abstract Ventures during the initial seed round.
Lee emphasized the value of these new partners, stating they possess extensive experience in brand building, product marketing, and community engagement.
The influence of Combs, Durant, and Smith is expected to reach Arc’s target demographic.
Beyond Luxury: Arc’s Long-Term Strategy
While the initial $300,000 boat caters to the high-end luxury market, Lee clarified that this is not Arc’s ultimate objective.
Co-founded by Lee and former SpaceX engineer Ryan Cook, Arc intends to design and market electric watercraft across a range of price points and applications.
The company, comprised of over ten individuals – many with significant experience at SpaceX – initially focused on developing the boat’s hull.
Addressing the Challenges of Electric Boats
Despite the advantages of electric boats – quieter operation, increased speed, improved reliability, and lower maintenance costs – widespread adoption has been hindered by several factors.
Historically, a dedicated supply chain for marine-grade batteries, appropriate high-voltage electrical systems, and hulls capable of accommodating the necessary battery weight and volume have been lacking, according to Lee.
“Our approach involved creating a purpose-built hull and specifically designed battery packs from the ground up,” Lee explained, highlighting the crucial role of SpaceX engineering expertise in developing both the hull and the high-voltage electrical system.
The Arc One Prototype
Arc has developed a functional alpha prototype, the Arc One, a 24-foot aluminum boat generating 475 horsepower.
This vessel can operate for 3 to 5 hours on a single charge, and production will be limited to fewer than 25 units.
Currently, the Arc One prioritizes functionality over aesthetics, with the primary focus being on the hull, electrical system, and battery pack design.
However, the boat is fully operational, having recently been tested during waterskiing activities.
Serial production of the Arc One is scheduled to commence next month, with initial customer deliveries anticipated in early next year.
Scaling Production and Competitive Pricing
Arc intends to utilize the newly acquired funds to expand production capabilities and develop boats that can compete with gasoline-powered vessels on price – mirroring Tesla’s strategy.
“While we won’t be producing large quantities of the initial model, it establishes a benchmark for electric boat performance and provides a strong foundation for our future endeavors,” Lee stated.
Arc aims to introduce and begin selling a new boat by the end of 2022, specifically targeting the mass watersports market.
To effectively compete, the pricing for this next model is projected to be between $150,000 and $200,000.
The launch timeline and pricing will be contingent on securing further capital.
For the time being, Arc anticipates that its first boat will generate demand for its forthcoming electric products.
