Arc raises $50 million to scale commercial

Today, Arc announced it has closed a $50 million Series C round led by Eclipse, a16z, Menlo Ventures, Lowercarbon, Necessary Ventures, and Offline Ventures. The funding accelerates production of Arc's electric powertrains for tugboats, ferries, and defense vessels — the commercial backbone of the marine industry.

“We are seeing a paradigm shift across the marine industry,” said Mitch Lee, co-founder and CEO of Arc. “Every sector is reaching for more capable, more reliable technology to power its vessels — from harborcraft to ferries to defense. Our electric powertrain technology is a leap forward for the industry, and we’re scaling it rapidly to keep up with the demand.”

The work underway

The raise follows Arc's $160 million contract with Curtin Maritime to deliver eight hybrid-electric tugboats beginning at the Port of Los Angeles, the busiest port in the Western Hemisphere. The first tug is on track to be on the water this year. The second is already under construction.

These vessels replace aging diesel tugboats that have powered port operations for decades at high cost and with significant downtime. Arc's vertically integrated electric platform reduces fuel and maintenance expenditure, increases reliability, and keeps freight operations running on schedule.

"When a port operator signs a $160 million fleet contract, that's not a bet on the future, that's the market telling you the transition is here," said Eclipse Partner Greg Reichow. "The Eclipse team is excited to support Arc as they scale into this next chapter.”

Expanding across sectors

Ports are just the start. Arc is actively working to meet growing demand for electric propulsion across ferry and defense operations.

Ferries powered by electric platforms deliver smoother schedules and cleaner passenger experiences. For naval vessels, lower maintenance and open-ocean endurance enables reduced signatures and increased autonomy. Arc has started work with defense contractors to shape the future of these fleets.

“Arc has demonstrated a proven track record, a world-class team, and the right technology to lead the U.S. electric maritime market,” said Menlo Ventures Partner Shawn Carolan. “As demand for advanced electric powertrains accelerates across commercial and defense sectors, Arc is uniquely positioned to scale.”

To learn more about Arc’s commercial work, reach out at commercial@arcboats.com.