New Zealand marine technology innovator Vessev has successfully closed A$27 million in Series A and follow-on financing, earmarked to significantly scale the production of its advanced electric hydrofoiling vessels. This substantial capital injection underscores growing investor confidence in the company’s pioneering technology, particularly as Australia rapidly solidifies its position as a pivotal and promising market for sustainable water transport solutions.
Key Takeaways (TL;DR)
- Vessev has secured A$27 million in Series A and follow-on financing, led by Blackbird Ventures, to accelerate production of its electric hydrofoiling vessels.
- The funding will boost production of the VS-9 and VS-12 models, expand global market teams, and advance software development.
- Australia is emerging as a leading market, with more planned electric hydrofoiling transport networks than any other country, according to Vessev CEO Eric Laakmann.
- Vessev has agreements to deliver multiple VS-12 vessels for Sydney Harbour and VS-9 vessels for Perth’s Swan River.
- Tasmanian operator Fly Derwent has doubled its reservations to ten Vessev vessels, aiming to position the state as a leader in low-impact transport.
- Vessev’s electric hydrofoiling technology offers quiet, efficient, sustainable, and commercially practical water transport.
- The company has also secured its first US customer, FlyTahoe, for a sustainable water transit network on Lake Tahoe, California.
Founded in 2017 and headquartered in Auckland, Vessev has dedicated years to designing and constructing what it asserts is the most durable and efficient electric hydrofoiling technology globally. The company marked a significant milestone in 2024 with the launch of its VS-9 model, boasting an impressive cruise range of 40 nautical miles at a speed of 25 knots. This was swiftly followed by the introduction of its newer, larger model, the VS-12.
Since its inception, Vessev has attracted a diverse array of investors and strategic partners, successfully deploying commercial vessels into active service. The company has also secured crucial agreements to deliver multiple VS-9 and VS-12 vessels to customers across key Australian cities including Sydney, Perth, and Tasmania, in addition to signing on its inaugural customer in the United States.
Australia: A Frontier for Electric Water Transport
The Australian market has rapidly captivated Vessev’s attention, proving to be one of the most dynamic environments for the adoption of electric hydrofoiling technology. This rapidly expanding interest is fueled by Australia’s unique urban landscapes and its growing commitment to sustainable transport solutions.
Vessev co-founder and CEO Eric Laakmann, a former Apple lead engineer instrumental in the development of the first Apple Watch, highlighted Australia’s burgeoning potential. “Australia currently has more planned electric hydrofoiling transport networks than any other country,” Laakmann stated, emphasizing the nation’s readiness for innovative maritime solutions.
Laakmann further explained the rationale behind Australia’s appeal, noting, “Its cities are built around waterways that are still underused as transport corridors and we’re seeing strong demand for a new kind of water transport that is quiet, efficient, sustainable and commercially practical. This funding allows us to scale production and continue building the vessels and technology needed to get there faster.” This sentiment underscores a clear market need for modern, eco-friendly transit alternatives.
Key Projects Across Australian Waterways
Vessev has already forged significant agreements that lay the groundwork for a transformative water transport infrastructure. The company has secured commitments to deliver multiple VS-12 vessels destined for a forthcoming water transport network set to operate on the iconic Sydney Harbour. This initiative promises to introduce a new era of quiet, efficient travel across one of the world’s most famous waterways.
Further west, Vessev has also received orders for its VS-9 vessels, slated for a new ferry network operating on Perth’s scenic Swan River. These projects collectively demonstrate a widespread adoption strategy across Australia’s diverse maritime environments.
Tasmania, in particular, is emerging as a critical hub for Vessev’s operations. Local newcomer Fly Derwent recently demonstrated its profound commitment to the technology by doubling its initial reservations to a total of ten vessels. This expansion builds upon the initial partnership announced between Fly Derwent and Vessev earlier in April, signaling robust confidence in the future of electric hydrofoiling for the island state.
Strategic Investment Fuels Global Ambitions
The A$27 million in Series A and follow-on financing was secured from a consortium of new and existing investors, prominently led by Blackbird Ventures. This significant capital infusion is strategically earmarked to support several critical areas of Vessev’s rapid expansion and technological advancement.
A primary allocation of the newly raised capital will be directed towards accelerating the production timelines for Vessev’s flagship VS–9 and VS–12 vessels. This boost in manufacturing capability is essential to meet the burgeoning demand from various markets, particularly Australia and the United States.
Beyond production, the funding will also facilitate the expansion of Vessev’s global market team, enhancing its reach and operational capacity across international territories. Furthermore, a crucial portion of the investment is dedicated to advancing the development of the company’s proprietary onboard software and telemetry platform, critical for optimizing vessel performance, safety, and operational efficiency.
Tasmania’s Vision for Sustainable Transport
Cameron McCulloch, principal of Fly Derwent, expressed immense enthusiasm for the partnership and the future of sustainable transport in Tasmania. “We’ve seen a huge amount of local and global support since launching Fly Derwent earlier this year, so we’re doubling down,” McCulloch stated, underscoring the positive reception their initiative has garnered.
McCulloch highlighted the versatile applications of Vessev’s vessels, noting, “The applications for these vessels keep growing as we look to connect more communities and support tourism across the state. We want to position Tasmania as a global leader in low-impact transport, built on its renewable energy advantage.” This vision positions Tasmania at the forefront of embracing clean energy solutions for its transportation infrastructure.
He further elaborated on Fly Derwent’s ongoing financial endeavors, confirming, “We’re currently raising additional capital, with interest from investors, communities, developers and businesses who all see ways to build Fly Derwent into their broader plans.” This continued fundraising effort signals strong regional and broader interest in developing a comprehensive, sustainable water transport network.
Expanding Global Footprint: The US Market
In a significant move to expand its international presence, Vessev has also named FlyTahoe, an emerging sustainable water transit network operator in Lake Tahoe, California, as its first United States customer. This partnership marks a crucial step in Vessev’s global expansion strategy, bringing its advanced electric hydrofoiling technology to a prominent North American waterway.
To further introduce its innovative vessels to the American market, Vessev is scheduled to undertake a series of demonstrations across the United States later this year. These demonstrations will showcase the efficiency, quiet operation, and environmental benefits of its electric hydrofoiling technology, aiming to attract further partnerships and investment in the region.
The Future of Waterways: Sustainable Maritime Solutions
The significant investment in Vessev and the rapid uptake of its electric hydrofoiling vessels, particularly in Australia, signal a pivotal shift towards more sustainable and efficient maritime transport solutions globally. By lifting the hull out of the water, hydrofoiling technology dramatically reduces drag, leading to substantial energy savings and a smoother, quieter ride, making it an ideal choice for urban waterways and sensitive marine environments.
This commitment to innovation aligns with global efforts to decarbonize the transport sector and harness renewable energy sources. As cities increasingly look to optimize their existing infrastructure, waterways present an untapped potential for eco-friendly public and tourist transportation. Vessev’s advancements offer a compelling blueprint for how this potential can be realized, fostering cleaner, quieter, and more efficient mobility on water.
FAQ Section
What is Vessev, and what technology do they offer?
Vessev is a New Zealand marine company founded in 2017, specializing in electric hydrofoiling vessels. Their technology allows vessels to lift out of the water, significantly reducing drag and enhancing efficiency, speed, and quiet operation. They currently offer the VS-9 and VS-12 models, designed for sustainable water transport networks.
How much funding has Vessev secured, and what will it be used for?
Vessev has secured A$27 million (US$19 million) in Series A and follow-on financing, led by Blackbird Ventures. The capital will primarily be used to accelerate the production of their VS-9 and VS-12 vessels, expand their global market team, and further develop their onboard software and telemetry platform.
Why is Australia a key market for Vessev’s electric hydrofoiling vessels?
According to Vessev CEO Eric Laakmann, Australia has more planned electric hydrofoiling transport networks than any other country. Its cities, built around waterways, present underutilized transport corridors. There is strong demand for quiet, efficient, sustainable, and commercially practical water transport solutions in major urban areas.
Which Australian cities will see Vessev’s vessels in operation?
Vessev has agreements to deliver multiple VS-12 vessels for a future water transport network on Sydney Harbour. Additionally, VS-9 vessels are ordered for a ferry network operating on Perth’s Swan River. Tasmania’s Fly Derwent has also doubled its reservations to ten vessels for state-wide operations.
Who is Fly Derwent, and what are their plans in Tasmania?
Fly Derwent is a Tasmanian newcomer in the sustainable water transit sector and a key partner for Vessev. They have doubled their reservations to ten Vessev vessels. Their goal is to connect more communities and support tourism, positioning Tasmania as a global leader in low-impact transport, leveraging its renewable energy advantage.
Has Vessev expanded beyond Australia?
Yes, Vessev has also secured its first US customer, FlyTahoe, an emerging sustainable water transit network operator in Lake Tahoe, California. Vessev plans to undertake a series of demonstrations in the US this year, signaling its intent for broader international expansion.