Belgian ebike maker Cowboy has bagged €5mn because it appears to be like to attain full-year profitability subsequent yr — and not endure the identical destiny as VanMoof.
The funding spherical was led by Cypress Capital, a Hong Kong-based VC with robust ties to Taiwan, the worldwide hub of bicycle manufacturing.
“Cypress Capital isn’t just a monetary investor — which is nice to have as effectively, particularly on this local weather — however a strategic one,” Cowboy’s founder and CEO, Adrien Roose, advised TNW.
Whereas Cowboy’s hyper-connected ebikes are assembled in Europe, it sources about half of its elements from Taiwan, Roose stated. “[Cypress Capital] have robust ties with our producers which is able to assist us additional safe the provision chain.”
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Present European buyers together with Index Ventures, {Hardware} Membership, and Future Optimistic Capital additionally joined the funding spherical. And shortly, most of the people may have an opportunity to speculate as effectively.
Cowboy crowdfund
Cowboy will launch its fourth crowdfunding marketing campaign on Crowdcube on Monday. UK-based Crowdcube permits personal firms to promote shares to a crowd of personal people.
Cowboy has to date raised €8mn from over 8,000 crowdfunders. It’s a income stream firms like Revolut have tapped to great success. In 2016, 433 folks purchased shares in Revolut through Crowdcube. The typical funding was £2,152. That will now be value £860,000, primarily based on Revolut’s newest valuation.
Cowboy’s newest funding spherical is in no way its largest. In 2022, the Belgian startup raised €80mn in Collection C funding. Up to now, Cowboy has managed to safe $138mn (€125mn), based on startup information platform Tracxn.
Cowboy’s founders — Roose, Tanguy Goretti, and Karim Slaoui — now look to show that they will flip all that funding right into a worthwhile enterprise, a milestone they hope to attain subsequent yr. The corporate already broke even throughout the entire of September 2023, however now needs to copy that success over the long run.
Going omnichannel
A key a part of its technique to change into a worthwhile enterprise, Roose defined, is increasing its community of third celebration sellers. Cowboy used to promote all of its bikes direct-to-consumer however final yr began pursuing an omnichannel method.
One of many downfalls of Dutch ebike model VanMoof, which went bankrupt final yr, was that riders might solely purchase and repair their ebikes at VanMoof branded shops. This was partly why the startup burnt via money so rapidly, and why its prospects have been so unhappy. Beneath its new management, VanMoof has scrapped this mannequin and it appears Cowboy has been taking notes, too.
“Most individuals immediately nonetheless purchase and repair ebikes at their native bike store,” stated Roose. Cowboy’s ebikes at the moment are obtainable in additional than 250 impartial sellers throughout Europe. The recent funding will assist develop that community.
Aftersales — aka ‘Preserving prospects pleased’
Cowboy’s software-connected, minimalist ebikes have earned a devoted following amongst younger city-dwellers in pursuit of biking perfection — and with some money to spare. Its least expensive ebike begins at €2,697. Earlier this the corporate launched Cross, its first all-road ebike mannequin.
As Cowboy’s prospects base grows and the corporate expands its product line, it faces new challenges in maintaining riders pleased. With such a high-end ebike loaded with proprietary elements, after-sales service is crucial. Some discontented Cowboy riders on Reddit have voiced their concern about buyer help, significantly since Cowboy shifted its name centre from Belgium to Egypt.
“We’re conscious of previous considerations concerning our after-sales help,” Roose advised us, including that Cowboy has since introduced its name centre again to its headquarters in Brussels.
The startup can be increasing its community of cellular mechanics who can repair your bike instantly at your door. Roose expects that increasing its community of third-party retailers will even make serving a Cowboy bike faster and easier.
Whereas many challenges lie forward, particularly on this tough startup funding surroundings, Roose is assured in his product. “Whereas there are a lot of copycats available in the market, we provide an ebike that’s unmatched in model and efficiency.”
A brand new McKinsey report predicts that the ebike market will develop from $180bn to $520bn by 2035. 5 European nations account for a whopping 50% of the market. Germany leads, with France coming in second and the UK third.
Roose has a easy clarification for the rising reputation of ebikes. “They’re one of the best ways to maneuver round cities,” he stated. “They’re greener, sooner, cheaper, and more healthy.”
