In a significant leap towards cleaner recreational boating, Los Angeles-based Arc, an electric boat company has raised $70 million in Series B funding, propelling its total funding to over $100 million. The funding round, backed by Menlo Ventures, Eclipse, Andreessen Horowitz, Lowercarbon Capital, and Abstract Ventures, will assist the company’s mission to electrify the marine industry.
Founded in 2021, Arc Boat Company is spearheading the electric boat revolution. With a team comprising former SpaceX and Tesla engineers, the company is redefining traditional watercraft. Their innovative approach involves blending modern aerospace design and manufacturing techniques with time-honored marine craftsmanship.
Addressing Environmental Concerns
Traditional gas-powered boats contribute significantly to air and water pollution. The recreational boating industry, responsible for 1 percent of annual U.S. carbon dioxide emissions from gasoline-burning vehicles, poses an environmental challenge. Arc’s electric boats provide a solution, mitigating noise pollution, harmful emissions, and unreliable engines.
With the newly acquired funds, Arc is gearing up to manufacture a speedboat tailored for wakeboarding enthusiasts. The company’s state-of-the-art factory in Torrance, California, will be the epicenter of this groundbreaking endeavor. The goal is to make electric boating accessible to a broader demographic, while still catering to the luxury market.
A Green Future on the Horizon
The global shift toward sustainable transportation is undeniable. Electric boats, once a niche concept, are becoming a focal point in the quest for cleaner seas. With advancements pioneered by companies like Arc, the prospect of noiseless, emission-free recreational boating is no longer a distant dream but a tangible reality.
According to research by Future Market Insights in 2022, the market is anticipated to exhibit a remarkable Compound Annual Growth Rate (CAGR) of 12.9 percent. Predictions suggest a robust escalation in market value, soaring from US$ 5.65 billion in 2022 to a staggering US$ 19 billion by 2032.
Key Findings of the report
- In 2021, electric watercrafts constituted merely 2 percent of the market share.
- Europe and the United States have experienced sluggish sales in the electric boat sector.
- The surge in freshwater fishing and sailing enthusiasts has significantly contributed to the growth of recreational boating in Western Europe and North America, the world’s two largest electric boat markets.
- The primary challenges anticipated for market development include the technical limitations of lithium-ion batteries and the complexity of replacing propulsion components.
Challenges and Future Prospects
The momentum behind this growth is multifaceted. Environmental and marine pollution concerns are compelling shipyards worldwide to shift from fossil fuels to renewable energy sources. Notably, stringent regulations imposed by regional governments are catalyzing this shift.
These regulations and initiatives are working in Favor of Arc Boat Company. Battery-powered boats and subsidizing research in battery and pollution control technologies fuel the electric boats market.
Arc Boat Company’s remarkable funding success is a testament to the growing momentum of the electric boat industry.
The startup is steering the course towards a greener, cleaner future for recreational boating. As they continue to make waves, the ripple effect of their efforts promises a brighter, more sustainable tomorrow for our waterways.
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