Led · Equity · May 2020

VanMoof designs and sells premium electric bikes primarily for city rides. Its S3 and X3 models feature electric motors, an electronic four-gear shifting system, hydraulic brakes, integrated lights, an integrated motion detector with alarm, and GPS and cellular connectivity that can be activated if a bike is reported stolen. The bikes retail at about $2,298 or €2,198 and are compatible with Apple’s Find My app. VanMoof controls much of its supply chain by working with a small set of suppliers to manufacture custom components and reduce intermediaries. The company has opened retail stores and service hubs in 50 cities and counts 150,000 people using its bikes, with the U.S. its fastest growth market. It plans to iterate faster, ship updated models with more custom parts, expand stores and service hubs, and grow online sales to reach a target of putting 10 million people on its bikes in five years. VanMoof builds electric bicycles and sells them via a direct-to-consumer model, controlling design and production. The company launched the VanMoof S3 and X3 in April and emphasizes rider services as part of its product suite. Management says COVID-19 accelerated e-bike adoption and VanMoof reported 220% global revenue growth during the worldwide lockdown. It sold more bikes in the first four months of 2020 than in the previous two years combined. The company plans to use new funding to meet increased demand, shorten delivery times and build rider service solutions while boosting market share in North America, Europe and Japan. VanMoof benefits from close customer relationships through its direct sales approach, which the company says will be strengthened by new products and services. VanMoof is a Dutch e-bike maker that sells direct-to-consumer electric bicycles and controls design through after-service. It recently launched upgraded S3 and X3 models featuring electronic four-speed gear shifting, integrated hydraulic brakes, and double the Turbo Boost power. The company has a partnership with SINBON that handles assembly and gives VanMoof control over the supply chain, enabling lower prices. VanMoof is positioning for international expansion and is capitalizing on increased cycling demand amid the COVID-19 pandemic. Financially, it grew revenue from €10M in 2018 to nearly €40M in 2019, had sales about 20% above target through 2020 so far, and is targeting €100M in annual revenue. The company was founded in 2009.