Los Angeles startup Arc Boat Company wants to expand its nascent commercial business and even sell electric propulsion systems to defense contractors, in an attempt to fulfill founder Mitch Lee’s desire to “electrify everything on the water.”
To do that, Arc has raised $50 million in a Series C funding round from Eclipse, a16z, Menlo Ventures, Lowercarbon Capital, Necessary Ventures, and Offline Ventures.
The expansion into these newer markets won’t come at the expense of Arc’s consumer boat business, Lee told TechCrunch in an interview. He said sport boats are a category that generates “meaningful revenue” for Arc, and helps prove to commercial customers that the company’s technology is both capable and durable.
