Topics
Latest
AI
Amazon
Image Credits:Romain Dillet / TechCrunch
Apps
Biotech & Health
Climate
Image Credits:Romain Dillet / TechCrunch
Cloud Computing
Commerce
Crypto
enterprisingness
EVs
Fintech
fund raise
contraption
Gaming
Government & Policy
Hardware
layoff
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
security measures
Social
distance
Startups
TikTok
Transportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Cowboy , the Brussels - found company that has been design and sell galvanizing cycle that you may see in major cities across Europe , has closed a pocket-sized , strategic financial backing round of € 5 million ( around $ 5.5 million at current rally rate ) . That includes € 1 million in debt facilities .
While the amount is n’t as telling as some of Cowboy ’s previous fundraises , the company has been looking for an investor outside of the traditional European VC firms that have already invested in the startup — an investor that could potentially give fresh doors . As a result , Cypress Capitalis leading the round . The Hong Kong - based investiture firm has strong ties with Taiwan , which is a fundamental hub for the global bicycle industry .
“ A slew of our Asian - based provider are Taiwanese for historical reasons . We are growing the fate of our European suppliers continuously as we have about half of our percentage that come from European provider . But the other one-half comes from Asia and mostly from Taiwanese provider , ” Cowboy atomic number 27 - founder and CEO Adrien Roose ( pictured above rightfield ) severalize TechCrunch .
Existing investors Index Ventures , Hardware Club , Future Positive Capital , Isomer and Exor are also participating once again in Wednesday ’s financial backing round . Cowboy will also launch an fairness crowdfunding campaign to give an opportunity to its customer to empower in the company .
“ We ’ve been raising somewhere between € 10 [ million ] and € 20 million a year over the last few years , ” Roose said . “ And yeah , the amount has pass away down . Last yr we raised € 8 million in fairness and € 5 million of debt . And now we ’re just annunciate a € 5 million lift , which is a fairly small raise for a company of our size . ”
harmonise to him , the company ask to call forth less capital letter because it requires less working capital . Cowboy should be more or less breakeven on an EBITDA basis for the 2d half of this yr . Next yr , he says , the companionship will change state a profit for the first time since its origination .
“ And we do n’t want to elevate more than what we want , particularly in these market stipulation , ” Roose contribute . It does n’t mean that Cowboy wo n’t lift ever again . However , it ’s been a baseless ride for the inauguration as the e - bike industry live a significant hike in sales after COVID - concern lockdowns . The companionship ’s evaluation peaked around that fourth dimension .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
But then , demand slowed down quite drastically . VanMoof , another European e - bicycle inauguration plump for by speculation capitalists , declare bankruptcy . It had a chilling effect on the entire industry .
With this recent funding round , Cowboy is now prize at € 40 million on a pre - money groundwork . But now , all eyes are on profitability — not the company ’s rating . “ We ’re get to see a ray of sun after the rain , ” Roose said .
And believe it or not , rain plays an crucial part in Cowboy ’s sales . The caller usually sell more bikes during the spring as the great unwashed start thinking about cycling to study and other places . It ’s been particularly rainy in Europe this year , so Cowboy ’s gross revenue have been a bit underwhelming .
Additional Cowboy form factors
The society originally focus on a single mannikin and iterated on the intent over the years . AfterCowboy 1cameCowboy 2,Cowboy 3andCowboy 4 . The company is now move away from number and expanding its lineup to other form factors .
Cowboy added the Cruiser , a modeling with an vertical riding posture and a whole tone - through version to appeal to more riders . This year , the company added theCowboy Crossmodel , an all - route model that aims for puff and long - distance trips .
likewise , Cowboy has diversified its distribution channels . In addition to its online stores , Cowboy now sells its e - bikes in traditional cycle computer memory . “ Since last year , we start doing partnerships with local bike shops because the fact is that 80 % of eastward - bikes sell in Europe are still sold through these bike shops , and so we require to encompass that , ” Roose said .
Behind the picture , Cowboy bikes partake in the same electronic platform and software feature , such as theft alerts , crash detection , in - app challenges and AdaptivePower . This feature , which has been recently updated , automatically adjusts the world power of the motor depending on the current slope or wind condition .
“ We ’ve invested tidy sum of time , efforts and chapiter into building that platform that forge really well . And now we want to capitalize on it and essentially make a family of products , ” Roose said . “ So we have the Classic , the Cruiser , the Cross . And you will see more bike from us in the future tense . ”
