E-bike maker Cowboy raises a small funding round as it targets profitability next year

Cowboy Secures €5 Million in Funding, Led by Cypress Capital

Cowboy, the Brussels-based electric bike company known for its sleek designs and presence in major European cities, has recently closed a strategic funding round of €5 million, with an additional €1 million in debt facilities. While this amount may seem modest compared to previous fundraises, the company sought an investor outside of traditional European VC firms to open new opportunities. Leading the round is Cypress Capital, a Hong Kong-based investment firm with strong ties to Taiwan, a key hub for the global bicycle industry.

CEO Adrien Roose highlighted the importance of Taiwanese suppliers in Cowboy’s supply chain, alongside European suppliers. Existing investors like Index Ventures and Hardware Club are also participating in this round, with Cowboy planning to launch an equity crowdfunding campaign to involve its customers in the investment process.

Roose mentioned that Cowboy’s fundraising needs have decreased as the company moves towards profitability. With expectations to break even on an EBITDA basis in the second half of the year and turn a profit in the following year, Cowboy is focused on sustainable growth. Despite challenges faced by the e-bike industry post-COVID lockdowns, Cowboy remains optimistic about its future prospects.

Expanding Product Line and Distribution Channels

Initially known for its single model approach, Cowboy has diversified its product lineup with models like the Cruiser and Cowboy Cross, catering to different riding styles and preferences. The company has also expanded its distribution channels by partnering with local bike shops in addition to its online stores, recognizing the importance of traditional retail in the e-bike market.

Under the hood, Cowboy bikes share a common electronic platform with features like theft alerts, crash detection, and AdaptivePower, which automatically adjusts motor power based on terrain and conditions. Roose emphasized the company’s focus on building a family of products, hinting at more bike models to come in the future.

As Cowboy looks towards profitability and continued innovation, its commitment to quality, design, and customer experience remains at the forefront of its business strategy. With the latest funding round and strategic partnerships in place, Cowboy is poised for growth and success in the competitive e-bike market.