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Exclusive: Land Energy seeking $65M for motorcycle-mounted smart batteries

Feb 14, 2024
A photo of two people riding Land electric motorcycles around a bend in a sunny, forest-lined road.

Land Energy says it's targeting both experienced riders and the EV-curious with its electric motorcycle. Photo: Courtesy of Land Energy

Land Energy plans to raise $65 million to ramp up its production of electric motorcycles and standalone smart batteries, the startup tells Axios.

Why it matters: Drivers tend to trade in an EV when its infotainment software starts showing its age or the battery stops holding as much charge.

How it works: Cleveland-based Land Energy wants to extend the lifespan of EVs — and other electronics — by enabling consumers to upgrade both the battery and computer system at the same time.

  • The startup has integrated a swappable battery with the connectivity and data capabilities you'd find in a smartphone or laptop.
  • It's selling the batteries as standalone power sources. But the bulk of its business has been the electric motorcycles it's built around those smart battery systems.

What they're saying: "We think of the bikes as the Trojan horse: It gets people hooked on the drug that is mobile energy," says CEO Scott Colosimo, who previously founded a motorcycle shop.

  • The two-wheeler approach has kept costs low while quickly generating profitable product margins, he says.
  • "We saw the collapse of the venture market coming — we needed a way to execute our profitability almost immediately."

Catch up quick: Land Energy in November closed a $7 million Series A.

The latest: It's now raising a $15 million bridge round via convertible note, led by Nunc Coepi Ventures.

  • Once that round closes, anticipated March 31, Land Energy plans to begin raising a $50 million Series B. It's eyeing a post-money valuation north of $200 million and may blend equity and debt.

What's next: Land Energy plans to ramp up production at its existing facility and is seeking a location to make its standalone energy storage systems.

  • "We've seen a lot of companies make a product at $8,000 and sell it at $5,000 and say 'we're going to scale into profit,'" Colosimo says. "We're not doing that. We make a product that's driving margin."
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