Electric propulsion innovator Arc raises $50M in new funding

Image: Arc

Arc, the Los Angeles-based electric boat and powertrain company contracted to power four hybrid electric tugs under construction for Curtin Maritime, has raised a $50 million Series C funding round from Eclipse, a16z, Menlo Ventures, Lowercarbon, Necessary Ventures, and Offline Ventures.

It says the new funding will allow it to ramp up its production of powertrains for electric tugboats, and accelerate its expansion into ferries and defense vessels.

“We are seeing a paradigm shift across the marine industry,” said Mitch Lee, co-founder and CEO of Arc. “Every sector is reaching for more capable, more reliable technology to power its vessels — from harborcraft to ferries to defense. Our electric powertrain technology is a leap forward for the industry, and we’re scaling it rapidly to keep up with the demand.”

Arc’s first electric tug is on track to be the water this year, with a second already under construction, and additional deployments planned for ports across the country.

Arc says the new funding raise comes as operators across sectors are shifting away from combustion propulsion systems toward next-generation electric platforms and that its vertical integration across hardware and software improves performance and capabilities, reduces maintenance, and increases reliability.

“Arc has demonstrated a proven track record, a world-class team, and the right technology to lead the U.S. electric maritime market,” said Shawn Carolan, partner, Menlo Ventures. “As demand for advanced electric powertrains accelerates across commercial and defense sectors, Arc is uniquely positioned to scale.”