Los Angeles-based Arc Boat Company has secured $50 million in a Series C funding round led by Eclipse, with participation from a16z, Menlo Ventures, Lowercarbon Capital, Necessary Ventures, and Offline Ventures.
The funding will support the company’s expansion beyond consumer electric boats into commercial maritime applications and defense-related propulsion systems.
Expanding Beyond Consumer Boats
Arc initially built its business around electric sport boats, a segment that continues to generate significant revenue and serves as a proving ground for its technology.
The company now plans to extend its capabilities into commercial and defense markets, responding to growing inbound demand from both sectors.
Rather than shifting away from its consumer focus, Arc aims to use it as a foundation to validate performance, durability, and economics before scaling into larger applications.
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Bringing Electrification To Maritime Industry
Arc’s long-term vision is to transition the broader marine industry toward electric propulsion.
Rising costs associated with traditional combustion engines, combined with regulatory pressure and improvements in battery technology, are accelerating interest in electric alternatives.
The company sees this shift as inevitable, with electric systems offering both operational and environmental advantages over legacy technologies.
Commercial And Defense Strategy
In commercial applications, Arc plans to collaborate with shipbuilders and operators, contributing design and propulsion technology rather than manufacturing entire vessels independently.
In defense, the company is positioning itself as a supplier of electric propulsion systems, addressing demand for more reliable and efficient powertrains, particularly in autonomous maritime systems.
Electric propulsion is seen as a key enabler for autonomy, improving uptime and reducing maintenance requirements compared to traditional engines.
Scaling Team And Operations
Arc has grown to around 200 employees and plans to expand further, particularly across engineering, production, and go-to-market functions tied to its commercial offerings.
The company is building a diversified business model that combines the faster revenue cycles of consumer products with the long-term stability and predictability of commercial contracts.
About Arc Boat Company
Arc Boat Company develops electric propulsion systems and vessels designed to modernise the maritime industry. By combining advanced battery technology with scalable engineering, the company aims to accelerate the transition to electric-powered transport on water across consumer, commercial, and defense applications.
