E-bike maker Cowboy raises new funding round and launches AdaptivePower

Brussels-based startup Cowboy has been within the information these days for its cash burn rate. However the firm needs to manage its narrative once more with some product and enterprise information. Cowboy is launching a new function known as ‘AdaptivePower’, which robotically adjusts the ability of the motor relying on the present slope and climate situations.

Cowboy’s electrical bikes are fairly simple — there is no such thing as a gear and there aren’t any + and – button to regulate the ability of the motor. The corporate thinks driving a motorbike must be as simple as leaping on the saddle and placing a foot on the peddle.

However that minimalistic method has some drawbacks. Whereas the default energy mode works effective in most cities, it’s not sufficient in hilly cities like San Francisco.

As an alternative of releasing a new bike with gears or buttons, the corporate is leveraging the sensors within the present Cowboy lineup, such because the gyroscope and accelerometer. Whereas these sensors have been initially included for crash and theft detection, they are often leveraged to make the bike smarter. Primarily based on the present torque, pace and different components, Cowboy robotically will increase the ability supply of the electrical motor or reduces it.

This function might be rolled out to Cowboy’s newest fashions that have been launched a few years in the past — the C4 and its step-through model the C4ST. It is going to be an over-the-air software program replace. As soon as the replace is put in, you’ll be capable of select between the ‘adaptive’ and ‘eco’ choices within the cell app for the motor energy settings.

In different product information, the corporate can also be releasing some new colours for the C4ST as you’ll be able to see within the picture on the backside of this text.

New funding round at a decrease valuation

In January 2022, Cowboy introduced an $80 million funding round. A bit greater than a 12 months later, the corporate is elevating extra money. But it surely isn’t disclosing the greenback determine of this new funding round.

In fact, issues have modified drastically for tech startups. VC corporations aren’t deploying capital as quickly and startup founders generally battle to boost their subsequent funding round. For a {hardware} firm like Cowboy, provide chain points and inflation additionally had some influence on the corporate’s margins.

Just a few weeks in the past, Cowboy co-founder and CTO Tanguy Goretti mentioned in a spicy LinkedIn post that the corporate was “within the technique of closing a €15M round” (that’s $15.8 million at at present’s alternate charge). From what I’ve heard, Cowboy ended up elevating a bit lower than that, however an fairness crowdfunding half goes to round up that round.

He additionally added in his LinkedIn publish that this current funding round is a down round. The corporate’s whole valuation is down by 44% in comparison with the earlier funding round. In different phrases, it’s an extended and windy street for Cowboy and the previous few months have been tougher than anticipated.

However the startup’s present traders selected to take a position extra money within the firm, which ought to enhance the corporate’s runway proper earlier than the height season of Cowboy gross sales (between March and October). After some logistics challenges a 12 months or two in the past, Cowboy’s margins are additionally again to the place they need to be.

With AdaptivePower, Cowboy can now take into consideration different potential autos as effectively. As an example, this function would work significantly effectively with cargo bikes. However there’s nothing to announce on this entrance for now.

“2022 has been our greatest 12 months ever with €41 million in income and gross sales rising by 2.7x 12 months over 12 months,” co-founder and CEO Adrien Roose mentioned in a press release. Cowboy has bought 50,000 since 2018. And 2022 wasn’t so unhealthy in any respect as the corporate informed me it managed to promote 20,000 bikes in a single 12 months.

Picture Credit: Cowboy