“This is the beginning of something big, the e-bike market is growing at staggering speed and we had a lot of extra interest as a result.”

Dutch e-bike startup VanMoof has raised a $40 million funding round just months after closing its Series A to capitalize on growing demand for alternate transport options during the coronavirus pandemic. 
As public transport becomes less appealing due to COVID-19, cycling has become a serious proposition even across major cities like San Francisco, New York, Paris, London, and Tokyo. The global e-bike market is set to reach $38 billion by 2025, according to a report by Markets and Markets, and COVID-19 has accelerated this trend, says VanMoof CEO Taco Carlier. 
“This is the beginning of something big,” Carlier told Business Insider in an interview. “The e-bike market is growing at staggering speed and we had a lot of extra interest as a result. There are so many opportunities for our company so we decided to continue with fundraising.”
Founded in 2009 by brothers Taco and Ties Carlier, VanMoof has now raised a total of $73 million. Its latest round comes months after a $13.5 million investment in May.
“The May round was like a bomb,” Carlier said. “It attracted a lot of other VCs and others interested in what was going on to us.”
Norwest Venture Partners led the round alongside existing investors Balderton Capital and Felix Capital. 
VanMoof sells $2000 high-tech e-bikes which have been increasingly popular this year with demand for its VanMoof S3 & X3 models leading to the company hitting 374% year-on-year growth. 
The funding will be used to scale the company’s production, which Carlier says is struggling to meet current demand. VanMoof says it will expand into key markets including the US and Germany and will also invest heavily in R&D. 
“Taco, Ties, and the VanMoof team have not only built an unparalleled brand and best-selling product, but they’re reshaping city mobility all over the world,” said Stew Campbell, an investment principal at Norwest. “We look forward to supporting the VanMoof team as they expand production, boost rider service solutions, and bring their e-bike experience to new markets.”
Check out VanMoof’s (redacted) pitch deck below: