Arc is a startup founded 10 months ago. Its ambitions are to electrify the water. The company started with a $300,000 boat and has since attracted the capital of some of the biggest names in the entertainment industry. After closing a seed round led by Andreessen Horowitz VC, the startup has attracted several new investors. These include Rich Kleimans Thirty Five Ventures, Kevin Durant, Rich Kleimans Thirty Five Ventures, Sean Diddy Combs Combs Enterprises, and Rich Kleimans Thirty Five Ventures.
Mitch Lee, CEO and co-founder of Arcs, describes the new investment as a strategic round. It brings Arcs total funding to $7 million. Arcs seed round was funded by Ramtin Namis Abstract Ventures and Chris Saccas Lowercarbon Capital.
Lee shared his experience with TechCrunch about all of these people in an interview. They are not only world-class at what they do but also have years of experience building brands, marketing products and cultivating communities.
Combs Durant, Smith and Smith all have an influence that taps into the market Arc hopes to reach. Lee explained that Arcs goal is to reach the upper luxury segment in which the first $300,000.00 boat sits.
Ryan Cook, a former SpaceX engineer, co-founded Arc to develop and sell electric watercraft in a variety of price points and uses. Lee explained that the hull was the foundation of Arc, a company with more than 10 employees.
Lee stated that electric boats are more quiet, reliable, and cost-effective than traditional boats, but they still have difficulty scaling up because of three obstacles. Lee said that historically, there has not been a supply chain to batteries for boats, high-voltage electrical systems, and a hull to support large battery packs.
We approached this by saying, "We are going to start off with a purpose built hull and purposely constructed battery packs. This makes more sense than if we were to just start from scratch," Lee stated. Lee also noted that SpaceX's engineering talent was crucial in developing the hull, high-voltage electrical system, and other necessary components.
Arc One is a 24-foot aluminum boat with 475 horsepower that can run for up to five hours on one charge. Arc will make fewer than 25 Arc One boats.
Lee said that the Arc One isn't aesthetically complete. He noted that the focus has been on the design of the hull, electrical system, and battery packs. The boat works, the team took it waterskiing recently. The first deliveries to customers will be made in early next year. Serial production of Arc One is expected next month.
Arcs plan is for investors to help scale production and create boats that are more affordable than gas-powered boats, a strategy used by Tesla.
Although we don't plan to make many of these, it sets the standard for electric boats in this market. Lee stated that it also creates an anchor for us, pun intended. Arc plans to launch and begin selling a new boat in 2022, which will directly target mass watersports consumers. Arc has not yet set a price for its next boat. However, it will need to cost between $150,000 and $200,000 to compete against its gas-powered counterparts.
Lee explained that the timing of Arc's next boat will be determined by how much additional capital they raise. The company is optimistic that its first boat will increase demand for future electric products.
