A Scottish eBike manufacturer has secured £1.85 million following a heavily over-subscribed funding round.
Glasgow-based FreeFlow Technologies, founded in 2012 by eBike innovator Neil MacMartin, will use the investment to support a move to a new headquarters and R&D facility in East Kilbride.
FreeFlow Technologies also said it plans to strengthen its team with senior technical and engineering hires.
The funding round was led by investment syndicate Kelvin Capital and supported by Equity Gap, Foresight Williams and Scottish Enterprise. The company raised £1.8 million in an earlier funding round in October 2018.
Commenting on the investment, Managing Director David Hemming said: “Before Covid hit the world the eBike sector was forecasted to grow by double digits each year for the foreseeable future however the global pandemic has changed the way people think about bikes across all walks of life.
“The needs of exercise and wellbeing and the need for a viable transportation options to and from work that is an alternative to public transport are now high on the public’s mind.”
FreeFlow Technologies says its eBike transmission system is more lightweight, compact and provides a higher power density than other products, with the motor and battery easily assembled into the bicycle frame rather than an oversized attachment as is common with other current electric bikes.
The firm is chaired by Martin McCourt, former CEO of Dyson, and hopes to tap into the growing demand from a number of large global bike and automotive brands.
- Edinburgh University spin-out to bolster renewable energy uptake
- Scots researchers secure funding for breakthrough AI research
- Check Point highlights future malware threats to fintechs
According to research from the Confederation of the European Bike Industry and The Light Electric Vehicle Association, the rapidly growing electric bike market was worth £4.9bn in 2018 and is expected to grow to £11.8bn in 2023.
“The eBike market is booming as many sections of society seek alternatives to public transport and take a greater interest in their personal health,” McCourt said.
“Great trends that truly benefit our citizens and our environment. The FreeFlow drive system transforms the look and riding performance of eBikes. Now an eBike can look like a normal bike, and ride like one,” he added.
John McNicol from Kelvin Capital said: “The events of 2020 have brought an unexpected rise in the number of people cycling and, in particularly eBike sales, something that hasn’t been seen since the 2012 Olympics.
“Kelvin Capital is delighted to back FreeFlow Technologies with this investment round. It is a business bringing innovation to a well-established market with an impressive management team including the ex-senior exec team of Dyson and business leadership from major cycling brands such as Cannondale, Rapha, Marin Bikes and Whyte Bikes.”