Vessev raises $32.6m to expand Auckland hydrofoiling boat production and exports

This week Laakmann also revealed his firm’s first American customer: FlyTahoe, which operates on Lake Tahoe in California.

“As part of its US market entry, Vessev has shipped the Auckland-built VS–9, Kermadec, to the United States where it will debut at New York Climate Week, followed by an event in Washington, DC, and on-water demonstrations at Lake Tahoe later this year,” Laakmann said.

“The US is a key market for us. We know there is demand there, and there is a real appetite for a better way to move people.”

Boosting staff and capacity

Vessev has increased staff at its East Tamaki boatyard from 14 to 58 over the past two years. The hires include America’s Cup and Tesla alumni.

Vessev designs and builds all core technology in house, from hulls and foils to the hardware and flight control systems, Laakmann says.

Current production capacity is booked out for the next two years, Laakmann says.

The new funds will be used to expand capacity to produce a new boat every five weeks. Production and sales staff are being hired.

A larger model, the VS-12 – which can accommodate up to 30 passengers – is in the works Fly Derwent in Tasmania.

Vessev and ferry operator Fullers also has the VS-19, which would hold up to 100, at the drawing board stage.

Laakmann says his firm’s America’s Cup-inspired hydrofoiling technology can support a vessel up to 32m.

The $32.5m raise was led by Australasian venture capital firm Blackbird, which now holds a 25% stake – making it the largest shareholder ahead of existing investors Icehouse Ventures (20%) and Sir Stephen Tindall’s K1W1 (17%), which also chipped in more funds for the latest raise.

Vessev is bringing world-class engineering from Apple, Tesla, the America’s Cup and Rocket Lab to a massive, long-stagnant industry,” says Blackbird Ventures partner Phoebe Harrop Meadows. “Its combination of foiling technology and software lowers operating costs while improving the passenger experience.”

The Series A round was also supported by new investors Rypples (“an ocean-focused impact investment firm”) and Global From Day 1 (which recently revealed a $56.7m first close for its latest fund, fuelled by Golden Visa holders), plus existing backers Shasta Ventures and NZVC, founded by transplanted Ukranian Mark Pavlyukovskyy.

The Vessev VS-9’s hydrofoiling technology was adapted from America’s Cup yachts.

Council-controlled Auckland Transport has recently turned its back on its putative shift to electric ferries, ordering eight new diesels, with more in the offing.

Fullers has argued that electric boats are cheaper over their lifetime, as well as being quieter and having no emissions. But Auckland Mayor Wayne Brown told the Herald that lower-tech diesel vessels had half the upfront cost.

Laakmann declined to comment on that front.

Vessev chief executive Eric Laakmann. Photo / Michael Craig

Vessev was the brainchild of Max Olson, co-founder and original chief technology officer for smart cow-collar firm Halter.

Olson is Vessev’s tech lead, having handed the chief executive reins to Laakmann, an American (don’t tell the mayor) who spent six years at Apple as a lead engineer for the tech giant’s smartwatch.

In 2018, Laakmann left Apple for a sailing-the-world sabbatical that saw him clock 30,000 nautical miles in his 17m catamaran before getting stuck in Auckland during the pandemic border closures. He never left, becoming lead engineer at Vessev, then CEO in 2022.

Inside the VS-9. Vessev has plans for a commuter service-friendly 100-seater. Photo / Supplied

With its $32.6m round, Vessev has found safe harbour after much smaller-scale seed raises as it scrabbled in its early days. One particularly hairy moment came as its funds started to run dry in mid-2024.

Fresh venture capital was in the offing, but only if the start-up could get a prototype onto the harbour.

“We pulled seven-day weeks for three months straight to get that boat on the water,” Laakmann told the Herald.

“Every start-up has that sort of near-death experience.

“Those are some of my fondest memories of working; literally being in the bow of the boat, wiring stuff with our head of electrical at 11pm on a Saturday night.

“I’m proud we pulled it off.”

Vessev VS-9 tech specs:

Length: 8.95mWeight: 4 tonnes fully loadedPower: Battery electricCapacity: 10 passengersCruise speed: 25 knots (46km/h)Top speed: 30 knots (56km/h)Range: Up to 50 nautical miles (92km) at 25 knotsCharging time: 0.8 nautical miles per minute from a standard marine charger

Source: Vessev

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.