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New Electric Motorcycle Startup Snags $10M

Written by Henry K. Rumph    Tuesday, 14 July 2009

A new electric motorcycle maker has come to town, and like other startups, Brammo is drumming up media interest as a result of venture capital backing. The Ashland, Oregon, company has raised $10 million in a first round of funding from Chrysalix Energy Venture Capital and Best Buy Capital. The startup's inaugural model, Enertia, will start shipping in the first quarter of next year. The company is accepting orders online and has listed the initial price at $14,995, with the goal of dropping that by $3,000 in the near future. "We wanted a lightweight, nimble bike for urban commuters that was not intimidating but was stylish and fun," wrote Brammo CEO Craig Bramscher in an email. "We designed it to have an eye to the future but clearly paying homage to motorcycling roots. It is designed for the first time rider and the seasoned motorcyclist alike." The venture funding will take the Enertia into production and help continue the company's development of addition models, Bramscher said. He would not say if Best Buy's backing meant the big box retailer would one day sell Enertias. The electric motorcycle has a top speed of 50 mph and has a 45 miles range at 25 mph. The batteries, lithium-ion built by Valence Technologies, can recharge in about 3 hours. Brammo's funding highlights the increasing popularity of electric vehicles among startups and established car makers, venture capitalists, and consumers, as gasoline prices have skyrocketed and concerns over global warming have intensified. Electric vehicles typically can be charged through a standard home electric outlet and are dramatically more energy efficient than gasoline or diesel powered cars. Larger electric vehicles, like Tesla's Roadster, that are meant to replace combustion engine sedans or sports cars have attracted more media attention. But several companies, like Brammo, are rolling out electric motorcycles or scooters with the belief that the market is expanding or even primed to surge for these relatively cheaper vehicles. That's why Brammo will face stiff competition. Vectrix, based in Middletown, Rhode Island, offers electric scooters for under $10,000 that are sold through a large network of dealers in North America and Europe. Vectrix actually refers to its vehicles as "maxi scooters" since their performance and styling suggest as much motorcycle as scooter. Their max speed is 62 mph, they recharge in between 3 and 5 hours and have a range of 55 miles. Veloteq, the Houston, Texas, subsidiary of Chinese brand Power Eagle, offers six models of electric scooters and motorcycles. And Santa Cruz, California based Zero Motorcycles sells off road electric motorcycles for under $8,000.

Last Updated ( Tuesday, 14 July 2009 )