Belgian ebike maker Cowboy has bagged €5mn as it looks to achieve full-year profitability next year — and suffer the same fate as VanMoof. 

The funding round was led by Cypress Capital, a Hong Kong-based VC with strong ties to Taiwan, the global hub of bicycle manufacturing.

“Cypress Capital is not just a financial investor — which is great to have as well, especially in this climate — but a strategic one,” Cowboy's founder and CEO, Adrien Roose, told TNW. 

While Cowboy's hyper-connected ebikes are assembled in Europe, it sources about half of its parts from Taiwan, Roose said. “[Cypress Capital] have strong ties with our manufacturers which will help us further secure the supply chain.” 

Existing European investors including Index Ventures, Hardware Club, and Future Positive Capital also joined the funding round. And soon, the general public will have a chance to invest as well. 

Cowboy crowdfund 

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

Cowboy has so far raised €8mn from over 8,000 crowdfunders. It's a revenue stream companies like Revolut have tapped to great success. In 2016, 433 people bought shares in Revolut via Crowdcube. The average investment was £2,152. That would now be worth £860,000, based on Revolut's latest valuation.

Cowboy's latest funding round is by no means its largest. In 2022, the Belgian startup raised €80mn in Series C funding. To date, Cowboy has managed to secure $138mn (€125mn), according to startup data platform Tracxn.    

Cowboy's founders — Roose and Tanguy Goretti — now look to prove that they can turn all that investment into a profitable business, a milestone they hope to achieve next year. The company already broke even during the whole of September 2023, but now wants to replicate that success over the long term. 

Going omnichannel

A key part of its strategy to become a profitable business, Roose explained, is expanding its network of third party dealers. Cowboy used to sell all of its bikes direct-to-consumer but last year started pursuing an omnichannel approach. 

One of the downfalls of Dutch ebike brand VanMoof, which went bankrupt last year, was that riders could only buy and service their ebikes at VanMoof branded stores. This was partly why the startup burnt through cash so quickly, and why its customers were so unsatisfied. Under its new leadership, VanMoof has scrapped this model and it seems Cowboy has been taking notes, too. 

“Most people today still buy and service ebikes at their local bike shop,” said Roose. Cowboy's ebikes are now available in more than 250 independent dealers across Europe. The fresh funding will help expand that network.

Aftersales — aka keeping customers happy 

Cowboy's software-connected, minimalist ebikes have earned a dedicated following among young city-dwellers in pursuit of cycling perfection — and with some cash to spare. Its cheapest ebike starts at €2,697. Earlier this the company launched Cross, its first all-road ebike model. 

As Cowboy's customers base grows and the company expands its product line, it faces new challenges in keeping riders happy. With such a high-end ebike loaded with proprietary parts, after-sales service is critical. Some discontented Cowboy riders on Reddit have voiced their concern about customer support, particularly since Cowboy shifted its call centre from Belgium to Egypt. 

“We are aware of past concerns regarding our after-sales support,” Roose told us, adding that Cowboy has since brought its call centre back to its headquarters in Brussels. 

The startup is currently growing its team of mobile mechanics who can fix your bike directly at your door. Roose also expects that expanding its network of third-party retailers will make servicing a Cowboy ebike quicker and simpler.

While many challenges lie ahead, especially in this difficult startup funding environment, Roose is confident in his product. “While there are many copycats in the market, we offer an ebike that is unrivaled in style and performance.”

A new McKinsey report predicts that the ebike market will grow from $180bn to $520bn by 2035. Five European countries account for a whopping 50% of the market. Germany leads, with France coming in second and the UK third. 

Roose has a simple explanation for the rising popularity of ebikes. “They're the best way to move around cities,” he said. “They're greener, faster, cheaper, and healthier.”