Brussels-Based Cowboy Aims for Break-Even in 2023 and Profitability in 2024
Brussels-based electric bike manufacturer, Cowboy, has successfully closed a strategic funding round of €5 million, with €1 million in debt facilities. The latest round is led by Hong Kong-based investment firm Cypress Capital, which has strong ties to Taiwan, a key hub for the global bicycle industry.
Despite the modest size of the round compared to previous fundraisers, Cowboy is focusing on profitability rather than valuation. The company, which has seen its sales fluctuate with the e-bike market trends, expects to be EBITDA breakeven in the second half of this year and aims to turn a profit for the first time since its inception next year.
Cowboy’s co-founder and CEO, Adrien Roose, explained that the company requires less capital due to its improved financial health. This approach is particularly cautious given the current market conditions and the recent bankruptcy of fellow European e-bike startup VanMoof.
Existing investors Index Ventures, Hardware Club, Future Positive Capital, Isomer, and Exor also participated in the round. Additionally, Cowboy plans to launch an equity crowdfunding campaign, allowing its customers to invest in the company.
The company’s valuation currently stands at €40 million on a pre-money basis, but the focus is now firmly on profitability. With a range of e-bike models, including the popular Cowboy 1, Cowboy 2, and Cowboy 3, the company has iterated on its designs over the years to meet consumer demands.
Cowboy’s sales are often influenced by seasonal weather patterns, and the particularly rainy European spring this year has affected its performance. However, with eyes on the horizon, Cowboy is optimistic about its prospects as it gears up for profitability.
Key Points:
– Cowboy closes a €5 million funding round, led by Cypress Capital.
– The company aims to be EBITDA breakeven in H2 2023 and profitable in 2024.
– Existing investors and a planned equity crowdfunding campaign contribute to the round.
– Cowboy’s focus shifts from valuation to profitability amid market challenges.
– The company’s sales are influenced by seasonal weather, with a rainy European spring impacting recent figures.
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