Land Energy, the electric vehicle startup in Cleveland, has closed its first investment round, which was led by North Carolina-based private equity firm Fenix Equity Partners.
Land Energy, which did not disclose the amount of its funding, said it would use the investment to scale U.S. production, hire EV talent, and expand its Internet of Things platform and manufacturing footprint in Cleveland, in a statement.
"We have been working with Andrew Sloop and his team at Fenix over the last several months to lay out a solid growth plan for Land," said Scott Colosimo, founder and CEO of the EV developer, in the statement.
"Fenix took the lead in this current round and has committed to following us in our A2 round, which shows [its] commitment to scaling with our company," Colosimo said.
Fenix Equity Group is a private equity firm in Lewisville, North Carolina, that acquires companies through buyouts and growth capital, according to Pitchbook.
A Form D filed with the Securities and Exchange Commission indicates that Fenix Land Energy Holdings LLC, of which Sloop and other Fenix Equity Partners are principals, raised $900,000 from six investors beginning April 25.
Fenix Land Energy Holdings, which identifies itself as a pooled venture capital fund, is seeking to raise $2.5 million, presumably for the benefit of Land Energy.
Colosimo sold his previous company, Cleveland CycleWerks, to go all in on his electric venture in 2020, according to Cleveland.com.
Land Energy said it would use its funding to produce the portable batteries that power its first product, called District, which can be used as an e-bike, e-moped or e-motorcycle depending on the ride mode selected, according to the company's website.
The batteries are designed to be swapped among Land Energy's vehicles and charged by standard electrical outlets, the company said.
Land Energy also said it would use its investment to "push production quicker" as it scales. District is made by hand-welding CNC-bent sheets and laser-cut tubing "to eliminate tooling and reduce our time to market," the company said.
About a dozen Districts have been delivered so far, Colosimo told Cleveland.com. The time from order to delivery is about three months, and Colosimo said he hopes to deliver about 1,200 bikes this year.
The standard District model starts at $7,800, and the District Street and Scrambler models, which have more street-legal amenities, start at $8,200, according to the company's website.
Land is outfitting 12,000 square feet in its factory at 1265 W. 65th St. in Cleveland's Detroit Shoreway neighborhood to meet growing demand for both its portable batteries and electric vehicles, the company said.
The EV maker also said it has agreed to expand its U.S. headquarters in Cleveland's Tech District with an additional 40,000 square feet of manufacturing space and a new tech and experience center in Cleveland's MidTown neighborhood.
