Brammo Inc.’s electric motorcycles barely make a sound, but the company is generating lots of buzz among investors as it raises its latest funding round.
- Brammo Inc.
The company has closed a $12.5 million first tranche of a Series B round targeting $30 million, according to Chief Executive Craig Bramscher. The Ashland, Ore.-based company has attracted two new investors: Alpine Inc., an Oklahoma-based oil and gas exploration outfit, and one unnamed backer.
Previous shareholders Chrysalix Energy Venture Capital and Best Buy Capital also participated in the round for the company, which earlier raised $10 million.
Brammo recently debuted its second model, the Empulse, a 100% electric motorcycle that will reach speeds of 100 miles an hour at a range of up to 100 miles per charge. Prices for the bike range from $9,995 to $13,995.
“The inflexion point seems to be this new product,” Bramscher said. “It’s a bike on parity with a gas bike. We have more than $6 million in pre-orders for the Empulse and it continues to climb every day.”
The company also offers its debut bike, the Enertia, which has a range of 40 miles and a price tag of $7,995. Bramscher said many states offer tax credits than can lower the price of Brammo’s bikes by 15% to 50%.
Founded in 2002, the company is not yet profitable but expects to reach that point next year. Bramscher said the company prides itself on running lean.
“Someone asked us if we’re the Tesla [Motors Inc.] of motorcycles. I told them we’re the antithesis of Tesla,” Bramscher said. While Tesla received commitments of more than $1 billion in equity and federal loans before it went public, “we’ll do it for under $100 million.”
COMMENTARY: That is one sweet electric motorcycle. It will be so nice not to hear that ear shattering sound most motorcycles make.
Courtesy of an article dated September 23, 2010 appearing in The Wall Street Journal's Venture Capital Dispatch
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