It’s always exciting hearing good news from Arcimoto, a startup cementing its lead in the three-wheel fun electric vehicle world. Demonstrating that leadership, Arcimoto just announced its first retail customer deliveries will come in early 2019.
If you need a perfect example of how to build a business right, look no further than to Arcimoto. I first saw the company in 2012 at the LA Auto Show showing prototypes of its fun EV. I liked it instantly. It was fun to drive and the team was a lively, fun bunch. And then, nothing. Well, almost nothing. The team deliberately kept everything under the radar. It built its resources, lined up funding, and just simply got to work.
10 years after starting, Arcimoto invited us to its first public shareholder meeting. It was magical. A sort of “we’ve made it this far” moment only a few startups ever see. In the meantime, the first fun utility vehicles (FUVs) were shipping to early investors & believers in Mark Frohnmayer’s vision. FUV is even the stock ticker for the company, just to highlight the good nature of the team.
Arcimoto Secures $4.5 Million To Produce Its Ultra-Efficient Electric Vehicle
According to Acimoto’s press release, the financing was led by FOD Capital and includes the purchase of 500,000 shares of Arcimoto’s common stock at a purchase price of $3.00 per share. The company also announced the issuance of “a $3.0 million senior secured note, which bears 10% interest over a one-year term, and a warrant to purchase 942,857 shares of registered FUV common stock for $3.50 per share.”
Mark Frohnmayer, President and Founder of Arcimoto, was quoted as saying: “This financing will allow Arcimoto to take the next critical step: the semi-automated manufacture, assembly, and delivery of our first retail vehicles. With global demand for electric vehicles accelerating, we are confident that Arcimoto’s vision – of a capital efficient enterprise producing affordable, efficient, small-footprint EVs designed for everyday driving – is well-timed. We believe this funding positions us to begin delivering on our 3,250 customer pre-orders, as well as deploy rental fleets in key destination cities.”
We just reached out to Mark, who told us it was great news to have around the holiday, and we concur. Mark also talked about the many crucial parts coming together to produce their vehicles. We feel you can say this is the beginning of the transition from startup to proper company.
Arcimoto’s current pre-order deposits represent about $49 million in anticipated sales revenue for the company.
In a news media world of gloom, stories like Arcimoto’s should be highlighted for their optimism. The startup is taking the right steps, but it’s taking them slowly and methodically. And that’s not to say it has always been smooth sailing. Like any startup, Mark told me there were rough times. Today, he’s breathing a sigh of relief. Thanks in part to celebrities who backed Arcimoto, like Nathan Fillion, there are investors who know that the right startups implement, instead of simply talking about future goals.
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