Electric boating company Arc Boat Co., nicknamed the “Tesla of boats,” has closed on $70 million in Series B funding.
Founded in Los Angeles in 2021, Arc uses a blend of aerospace design and traditional nautical manufacturing to produce its fully electric boats, with its first product, Arc One, delivered last year by the team of rocket, electric vehicle, marine and software engineers, including a number of former SpaceX veterans.
Arc’s investors include Eclipse, Andreessen Horowitz, Lowercarbon Capital and Abstract Ventures, which all participated in the latest round of funding, as well as Menlo Ventures, an investment group led by Arc partner and boating enthusiast Shawn Carolan.
The $300,000, 24-foot Arc One was the company’s first foray in the boating business. Going forward, Arc is taking aim at a more specific hydro market: water sports vehicles. With the $70 million funding, Arc will enter its next phase of growth with its next wave of high-performance electric vehicles, with plans to make the products more cost-effective and sustainable.
Arc also announced plans to open a new 150,000-square-foot factory in Torrance, California, later this year. The 80-person company is actively hiring across all departments, seeking to fill nearly 30 positions.
Designed for freshwater lakes and rivers, the 500-horsepower Arc One is quieter and cleaner than gas-powered vehicles, with the same capabilities. According to Arc, users can wakeboard or water ski behind the boats, which can fit up to 12 people and can be charged from a standard wall outlet or an EV charger.
Arc One is sold out, but the next model will drop in 2024. Interested parties can sign up for a test ride of the Arc One on the company’s website.
