Harley-Davidson has announced its strategic investment in Alta Motors, which will see the two American companies co-developing two new electric motorcycle models. As one can imagine, the news has big ramifications for both brands. For Harley-Davidson, it means having access to cutting-edge electric vehicle technology, and a technical partner that can help them navigate the coming shift to electric drivetrains. And for Alta Motors the news is perhaps even more impactful, as Harley-Davidson brings not only a key monetary investment into the San Francisco startup, but the deal likely provides access to a variety of assets for Alta, namely purchasing power with parts supplier, access to a worldwide dealer network, and instant credibility with other future investors.
MV Agusta has finally closed a very important funding round, getting equity investment from ComSar Invest, which is backed by the Black Ocean Group, which in turn is owned by Russian billionaire Timur Sardarov. The move sees MV Agusta able also to repurchase its stock from Mercedes AMG, which previously owned a 25% stake in the Italian motorcycle manufacturer. The details of the ComSar deal however have not been disclosed, though we do know that the deal includes enough cash to finish MV Agusta’s recapitalization plan with its creditors and to begin its new, more focused, business plan for new models and motorcycle production. According to MV Agusta’s press release, the newly financed recapitalization plan has already been approved by a quorum of the creditors.
Reuters continues to dish on Ducati’s possible divestiture from the Volkswagen Group, with news that several bids have been placed on the Italian motorcycle brand. Reuters says that amongst the bidders are several key brands like, Polaris, Bajaj, and Royal Enfield’s owners Eicher Motors. Noticeably absent from the list of potential buyers however was the much talked-about Harley-Davidson, a name that the same Reuters reporters first offered as Ducati’s potential future owner. Now Reuters offers us another name as the likely front-runner, pointing to Italy’s Benetton family (as in, the United Colors of Benetton), which has reportedly submitted a bid of $1.2 billion, through its investment arm Edizione Holding.
Alta Motors is announcing that it has closed two fundraising rounds, for a total of $27 million capital raised in exchanged for preferred stock in the San Francisco based electric motorcycle company. The B & C series fundraising rounds were led by Grassy Creek Ventures, with the Series C round joined by Latin American venture capital fund Mountain Nazca, along with motorcycle legend Bob Fox – of Fox Racing fame. Alta Motors says that the use of funds goes to the expanding the company’s existing manufacturing and R&D facility in Brisbane, CA; refining the company’s vehicle technology; and developing more lightweight vehicles.
To call the last couple of years for MV Agusta turbulent would probably be understating the situation. The company has struggled for financial stability ever since its re-acquisition by the Castiglioni family, and that struggle has recently come to a zenith with the firms debt restructuring and investment by the Anglo-Russian investment group Black Ocean. With that comes some harsh realities, namely that MV Agusta will not be producing a new superbike any time soon, as the cost of the project exceeds the Italian manufacturer’s capabilities – so said MV Agusta CEO Giovanni Castiglioni while talking to Alan Cathcart for Australian Motorcycle News.Instead, the company will focus on a new four-cylinder Brutale model, which will get a displacement increase to 1,200cc.
Last week, I was ready to start polishing the obituary for MV Agusta – the Italian company seemingly in an impossibly terminal state. Now it seems MV Agusta’s fortunes are changing, with the Italian motorcycle maker signing an agreement with the Black Ocean investment group to recapitalize MV Agusta. Details of the pending transaction haven’t been released, but we can assume that the increase in capital will help ease MV Agusta’s relationship with suppliers, get workers back on the assembly line, and continue the development of new models. The €20 million question though is whether Black Ocean’s investment will mean the departure of AMG, the German auto brand acting now like an albatross around MV Agusta’s neck.
Skully on Friday finally acknowledged what has already been known in the motorcycling community: the company was going out of business. The news comes after a last-minute effort by the remaining management to secure a new round of funding. With $15 million down the drain, work still to do before the Skully AR-1 would be ready to ship, and a growing group of disgruntled early adopters, Skully’s resurrection was not to be. Instead in a letter to backers and customers, Skully announced that it would be filing for Chapter 7 bankruptcy, the bankruptcy procedure for companies that are going out of business. This news, of course, directly impacts the thousands of motorcyclists who were expecting to receive a Skully AR-1 helmet.
It was just two weeks ago that we told you about Skully’s investors ousting brothers Marcus Weller and Mitch Weller from the San Francisco startup, and today TechCrunch reports that the motorcycle helmet company will be rather swiftly closing its doors. A&R readers may remember that Skully’s latest delay to market stemmed from the Skully AR-1 helmet not being ready for mass production, despite the nearly $15 million raised through seed money and a Series A funding round, which was led by Intel Capital. As such, the closure surely stems from Skully’s investors choosing to shut down the company’s operations, rather than rebuild Skully’s tarnished reputation and retool its product for mass production.
Rever, the popular motorcycle route tracking app for smartphones, just got a serious boost today. The news sees BMW’s investing arm, BMW i Ventures, investing in the social media company, while BMW Motorrad will form a strategic partnership with Rever as well.
Details about the deal are a bit vague beyond the aforementioned, though one can logically deduce that BMW will be able to use the Rever platform for its riders, adding a connected social element for BMW Motorrad.
Of course for Rever, this means the startup has the backing of one of the strongest motorcycle brands in the world, along with a strategic investment – a two-fer for the Colorado company.
If you’ve ever wanted to own part of a boutique motorcycle brand, this might be your chance, as Confederate Motors is looking to raise $1 million via a private stock offering. In total, 5 million shares of Confederate stock will be made available for purchase, which means each unit of stock will be priced at $0.20 a pop.
Before you start emptying out your wallet though, the offering is made under Rule 506 of Regulation D, which means there are several restrictions on the purchase, including the fact that you will have to be an accredited investor – i.e. a financial institution or a person of wealth.
Electric motorcycle startup Energica has found some big guns to help find it funding: UBS .
According to the company’s press release, UBS will be Energica’s sole financial advisor during the electric motorcycle company’s search for Italian or international funding.