The image is from the Arc OneDockInterior.
After coming out of stealth mode, Arc has raised $30 million and has started putting its first prototype through its paces. Greg Reichow is a partner at Eclipse Venture and a former vice president of production atTesla. Existing Arc investors like Will Smith, Kevin Durant, and Sean "Diddy" Combs put money into the startup in October through their own funds.
Arc wants to sell a limited number of its first electric boat, the Arc One, at an extraordinary price of $300,000 before moving on to making more affordable boats. It will be able to justify that price by promising a lower cost of ownership than gas-powered boats, as well as easier maintenance and upkeep. The startup is targeting the types of high-net-worth individuals like the celebrities who have invested in the company as its first customers, according to Arc founderMitch Lee.
Lee said in an interview that it was an indication of where they wanted to take the company.
Arc is starting at the high end.
Arc plans for its first boat to have a 200kWh, 800-volt battery pack that can power an electric motor with at least 475hp. It will have a top speed of 40 miles per hour and can last four hours under power before needing to be charged, which the startup claims is plenty for a day out on the water. The Arc One can be used for watersports, which is a big advantage over other early electric boats.
Lee wants to use the money from Arc One sales to make a more affordable version of the product, so he will put it back into research and development.
Related.
Arc wants to make a big splash.
The investment from Eclipse will make it possible to accelerate the startup's plans according to Lee, who told The Verge earlier this year that Arc was planning to move quickly. One employee at Arc has even water skied behind a prototype of the Arc One, which is currently being tested. The company will begin limited production of the boat at its shop in Los Angeles, California, in the coming weeks, and start deliveries shortly thereafter, Lee said.
The new funding will help the startup hire in an increasingly competitive electric watercraft market, one that General GM even dipped into this week when it announced an investment in Pure Watercraft.
Lee thinks Arc has a lot of advantages when it comes to hiring talent that may otherwise have gone to automotive EV startup like Rivian or established players likeTesla. Arc employees are more likely to own a bigger portion of the boat's development than they are at a car company, he said. Lee saidboats are a fun product.
