Boutique e-bike maker Cowboy raises €5 million and tries to realize what VanMoof did not do

The Belgian e-bike manufacturer Cowboy has pocketed 5 million euros and wants to achieve full profitability next year – and not suffer the same fate as VanMoof.

The funding round was led by Cypress Capital, a Hong Kong-based venture capital firm with close ties to Taiwan, the global center of bicycle manufacturing.

“Cypress Capital is not only a financial investor – which is great, especially in this climate – but also a strategic one,” Adrien Roose, founder and CEO of Cowboy, told TNW.

While Cowboys hyper-connected e-bikes are assembled in Europe, but about half of the parts come from Taiwan, Roose said.[Cypress Capital] We have close relationships with our manufacturers that will help us further secure the supply chain.”

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Existing European investors, including Index Ventures, Hardware Club and Future Positive Capital also participated in the funding round. And soon the general public will also have the opportunity to invest.

Cowboy crowdfunding

Cowboy will launch its fourth crowdfunding campaign on Monday on Crowdcube. UK-based Crowdcube allows private companies to sell shares to a group of private individuals.

Cowboy has so far raised 8 million euros from over 8,000 crowdfunding companies. It is a source of income for companies like Revolut has tapped into great success. In 2016, 433 people bought Revolut shares through Crowdcube. The average investment was 2,152 €That would be worth it now £860,000, based on The latest Revolut review.

Cowboy's latest funding round is by far not the largest. In 2022, the Belgian startup raised €80 million in Series C funding. To date, Cowboy has raised $138 million (€125 million), according to the startup data platform. Tracxn.

The founders of Cowboy — Roose, Tanguy Goretti and Karim Slaoui – now want to prove that they can turn all these investments into a profitable business, a milestone they hope to achieve next year. The company has already reached the break-even point throughout September 2023, but now wants to repeat this success in the long term.

Switch to omnichannel

A key part of the strategy to become a profitable company is expanding the network of third-party dealers, Roose explained. Cowboy used to sell all of its bikes directly to the end consumer, but adopted an omnichannel approach last year.

One of the Disadvantages of the Dutch e-bike brand VanMoofwhich went bankrupt last year, was that riders could only buy and service their e-bikes in VanMoof-branded stores. This was one of the reasons why the startup burned through money so quickly and why its customers were so dissatisfied. Under its new leadershipVanMoof has scrapped this model and it seems that Cowboy has taken notes as well.

“Today, most people still buy and service their e-bikes at their local bike shop,” said Roose. Cowboy's e-bikes are now available at more than 250 independent dealers across Europe. The new funding will help expand that network.

Aftersales – also known as customer satisfaction

Cowboy's software-controlled, minimalist e-bikes have gained a loyal following among young city dwellers who strive for cycling perfection – and have some money to spare. The cheapest e-bike starts at €2,697. Previously, the company Crossits first all-road e-bike model.

As Cowboy's customer base grows and the company expands its product line, it faces new challenges in keeping riders happy. With such a high-quality e-bike with proprietary parts, customer service is crucial. Some dissatisfied cowboy riders on Reddit have expressed concerns about customer service, especially since Cowboy moved its call center from Belgium to Egypt.

““We are aware of previous concerns about our after-sales support,” Roose told us, adding that Cowboy has since relocated its call center back to its headquarters in Brussels.

The startup is also expanding its network of mobile mechanics who Lock your bike right in front of your doorRoose expects that expanding its network of third-party providers will also make delivering Cowboy bikes faster and easier.

Although many challenges still lie ahead, especially in this difficult environment for start-up funding, Roose is confident in his product. “Although there are many imitators on the market, we offer an e-bike that is unrivalled in terms of style and performance.”

A new McKinsey report predicts that the e-bike market will grow from $180 billion to $520 billion by 2035. Five European countries account for a whopping 50% of the market. Germany leads the pack, France comes in second and the UK in third.

Roose has a simple explanation for the increasing popularity of e-bikes. “They are the best way to get around cities,” he said. “They are more environmentally friendly, faster, cheaper and healthier.”