VanMoof raises $13.5M to capitalize on e-bike boom in wake of COVID-19

So with cycling a viable option in many cities, but distance still the old adversary, many consumers are looking to e-bikes as the solution to commuting, versus traditional bikes, which can’t compete with an e-bike’s ability to take the rider much further than normal.

To boost take-up, the UK government has unleashed a £2 billion package to create a new era for cycling and walking, leading to shares in bike retailer Halfords jumping by 17% on Monday.

In the US, New York City just committed to adding protected bike lanes across Manhattan and Brooklyn. Berlin is extending some of its already extensive bike lanes. And Milan will introduce a five-mile cycle lane to cut car use after the lockdown. New York City has reported a 50% increase in cycling compared to this time last year. Cycling in Philadelphia has increased by more than 150% during the COVID-19 outbreak.

Taco Carlier, VanMoof co-founder, said in a statement: “It’s a unique time to build such a meaningful partnership. Not only do we appreciate this vote of confidence from an investor with deep sector experience, it’s a great sign that investments are becoming greener, shifting away from fossil fuels and towards e-mobility.”

Colin Hanna, principal at Balderton said: “VanMoof produces a category-leading product in a rapidly growing market that is changing the world for the better. We believe that the quality, community, and experience of VanMoof will make them a household name from Tokyo to Berlin.”

VanMoof recently launched the S3 and X3 models which are upgrades to previous models, at a significantly cheaper price. The price is a reflection of the fact that VanMoof has full control of the supply chain thanks to its partnership with SINBON, combined with a direct-to-consumer sales model which means it takes complete ownership of everything from design to production, from sales to after-service.

Furthermore, in the last two years, the company has quadrupled its €10m 2018 revenue to nearly €40m in 2019, with sales 20% above target throughout 2020 so far, meaning it’s looking at an annual revenue goal of €100m.

The high performance new electric VanMoof S3 and X3 have a new range of features, including electronic four-speed gear shifting, integrated hydraulic brakes, and double the Turbo Boost power.

But VanMoof is not the only VC-backed e-bike on the market. Brussels-based Cowboy is an e-bike startup that only appeared in 2017 but has since gone on to raise $19.5M from Tiger Global and London’s Index Ventures.

While it’s a tragedy that it’s taken a deathly pandemic to kick-start this market, the prospect of our cities becoming radically changed for the better, with cleaner air and healthier, bike-riding citizens, does seem to be appearing on the horizon.