Electric Bike Startup Cowboy Working With BofA to Raise Funding
(Bloomberg) -- Brussels-based electric bicycle startup Cowboy is seeking to raise a new round of financing, taking advantage of growing interest in cycling spurred by the coronavirus outbreak.
The company is talking to investors and targeting funding of more than $50 million, according to people familiar with the matter, who asked for anonymity because the discussions are private. Bank of America Corp. is advising Cowboy on the process, one of the people said.
E-bikes are seeing a surge in interest as pandemic fears of public transportation spur people to seek fresh air alternatives. Representatives of Cowboy and Bank of America declined to comment.
Founded in 2017, Cowboy sells bikes and offers an accompanying mobile application. The company raised 23 million euros ($27 million) in July 2020. It’s backed by investors including Index Ventures, Tiger Global and Exor Seeds.
Cowboy’s plans come after news earlier this week that Amsterdam-based competitor VanMoof raised $128 million from investors led by Hillhouse Investment to help fund a global expansion. Existing investors including Norwest Venture Partners, Felix Capital, Balderton Capital and TriplePoint Capital also participated.
VanMoof Co-Founder Taco Carlier said in an interview Wednesday that the new money will be used to build out manufacturing and research and development, and that he aims to take the startup public in about two to five years.
“The market is starting to grow very fast and we’re seeing an acceleration every year,” Carlier said.
©2021 Bloomberg L.P.