Veo, A Micromobility Company, Raises $16 Million To Fund Its Expansion In The U.S.
Veo, a micromobility company, raises $16 million to fund its expansion in the U.S.
Veo, a provider of shared micromobility, has raised $16 million in new funding to accelerate its expansion plans in the United States. The Series A funding round, which comes on the heels of permit awards in Santa Monica, San Diego, and New York, will be used to expand Veo's fleet and strengthen city and community partnerships.
Veo, founded in 2017, raised venture capital slightly later than other micromobility startups. Candice Xie, Veo's co-founder and CEO, has been vocal about the importance of developing a sustainable business model that is profitable on its own before seeking external funding, which the company claims it has accomplished. However, as Veo expands its footprint, the company will require additional funding to acquire the vehicles necessary to deploy in new markets.
“We want to ensure that we have very high-quality vehicles as well, because vehicle depreciation is a significant factor in unit economics, which we have a good handle on,” Edwin Tan, co-founder and president of Veo, told TechCrunch. “We want to demonstrate that we can continue to develop high-quality, long-lasting vehicles by leveraging our design and supply chain.”
The company, which has always designed and manufactured its own electric scooters and bikes rather than partnering with a manufacturer, recently launched the Astro 4, which Tan estimates will last approximately three years. Veo's previous vehicle generation had a two-year life expectancy.
New features on the vehicle can significantly reduce operational costs
According to Tan, new features on the vehicle can significantly reduce operational costs and provide users with more value for their money. According to Veo, the Astro 4 is the world's first shared e-scooter with turn signals. Additionally, it will include a new lighting feature that will ask passersby to "Please pick me up" if the board is knocked over — an effort to alert people with disabilities to the scooter's presence while also resolving the public nuisance issue. Additionally, a brighter headlight, decklight, and taillight have been added, and other features such as improved suspension and IoT will help keep costs down, Tan explained.
“We are increasing our R&D budget,” Tan explained. “We want to ensure that we are able to develop new technology or a new product that addresses new form factors. We believe that this industry is still in its infancy and that we can create additional form factors and significantly alter how people move around with various vehicles. That unmet demand is critical for us.”
According to Tan, Veo adds an average of one new vehicle per year. The company intends to introduce a new vehicle in the first quarter of 2022 that will address the "winter issue" and eliminate ride seasonality. The company stated that it already has a solution for that but is unable to provide additional details.
Veo also wants to meet the needs of people who are unsure of their ability to ride a stand-up kick scooter or a bike. Veo's Cosmo model, a sit-down scooter, is one way the company is attempting to meet that demand. Veo intends to offer additional models that are more accessible to a broader range of people, in response to city requests.
Autotech Ventures led the funding round, which also included participation from UP Partners, FJ Labs, and Interplay Ventures.
