#55 Arc
Ultra-powerful electric boats
Read time: 5 minutes
Hi, I’m Javi Gascón.
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Today we’ll distill a company that’s electrifying the marine industry with sleek, powerful, and sustainable boats: Arc 🇺🇸
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What Problem Does Arc Tackle❓
All the environmental issues associated with boats. It’s a bigger deal than you might think. Here are some details…
1. Greenhouse Gas Emissions: Over 80% of greenhouse gas emissions in boat building are associated with the use of composite materials, particularly virgin carbon fiber. For example, the construction of an IMOCA race boat generates around 553 metric tons of CO2e, equivalent to driving 1.4 million miles.
2. Resource and Energy Consumption: Building an 8.6-ton boat requires 34.5 tons of material, 9000 cubic meters of water and 15.9 million megajoules of energy, equivalent to the annual energy use of 370 North American homes.
3. Gas and Emissions: In 2023, the total fuel used by ships was 211 million tonnes and they were responsible for 3% of global emissions.
4. Marine Pollution: As boats break down, they release microplastics and toxic materials like copper, zinc, and aluminum, which harm marine life.
Product / Service 📦
Arc wants to electrify all waterborne vessels. Starting with higher-margin vessels in which batteries beat out gas on cost, operations, and maintenance, enables Arc to scale up to larger boats like ferries and freight.
Their boats are awesome for several reasons:
Silent Power: Electric propulsion provides a smooth, quiet, and powerful ride (570 hp motor), with features like double the torque of premium gas boats and top speeds of up to 40 mph (surpassing many traditional gas-powered boats).
Future-proofing: Arc Boats' use of over-the-air software updates means their vessels can improve over time, unlike traditional boats that depreciate immediately.
Maintenance and Cost-effectiveness: Their high-performance boats are 100x easier to maintain, 10x cheaper to operate. The battery lasts for 6h of “average usage“ and 24h at low speeds.
Design and Features: Auto-retracting hardtop towers, customizable wave systems, and premium sound systems. They have advanced ballast systems, and spacious storage, making them highly functional for wakeboarding and wake surfing.
Sustainability: Boats designed to be highly efficient in terms of energy consumption and the company is exploring the use of sustainable materials and manufacturing processes to reduce its carbon footprint and minimize waste.
Sexy, sustainable and ultra-efficient electric luxury boats.
Market 🌐
The electric boat market is experiencing significant growth driven by technological advancements in battery systems and regulatory push for sustainable maritime transport. The market was valued at $3.8 billion in 2024 and is expected to reach $7.8 billion by 2030.
Other Key Players
X Shore 🇸🇪: Producing electric boats with a focus on sustainability and innovative design, targeting both leisure and commercial markets.
Nautique 🇺🇸: Manufacturer offering electric wakeboarding boats, emphasizing performance, comfort, and environmental friendliness in their electric models.
Candela 🇸🇪: Known for its foiling electric boats, which combine high speed, range, and innovative hull design for efficient operation.
None can match Arc’s performance though.
Founding Story 🦄
Arc Boats was founded in 2021 by Mitch Lee and Ryan Cook, leveraging their diverse backgrounds and expertise to revolutionize the marine industry with electric boating.
Mitch Lee, the CEO, grew up in a Bay Area family of boating enthusiasts and developed a strong entrepreneurial spirit from a young age. He spent considerable time on the water and later focused on software and entrepreneurship.
Ryan Cook, the CTO, hails from rural Pennsylvania and was known for his early engineering feats, including building complex Lego sets, robots, and toy rockets. He earned the nickname "Rocket Man" and later became a lead engineer at SpaceX.
The two met while studying mechanical engineering at Northwestern University and maintained their connection despite pursuing different career paths. After Mitch's software startup was acquired, he and Ryan reunited to explore a new venture that combined their skills in hardware, software, and business. Inspired by Mitch's love of the water and Ryan's experience with EV technology, they decided to create electric boats.
They’ve raised $104 million from Andreessen Horowitz and other top tier funds and transitioned from producing limited edition boats to focusing on mass manufacturing of wakesports boats.
Top Impact Stats 📈
At cruising speeds above 15 knots, Arc boats achieve efficiencies above 0.5 nm/kWh, which is 5X better than traditional gas-powered boats.
Traditional gas-powered boats account for 1% of annual U.S. carbon dioxide emissions from gasoline-burning vehicles.
Boats could drive 10% of all emissions by 2050 and Arc has the potential to eliminate a big chunk of that with their tech when it’s scaled up.
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