Electric Speed Boat Maker Expands to Defense With New Funding

Electric boat manufacturer Arc secured $50 million in new funding from Eclipse, Menlo Ventures, and a16z to accelerate expansion beyond consumer markets. The startup, led by CEO Mitch Lee, will target commercial and defense sectors, including tugboats, ferries, and military vessels. The funding round, announced in March 2026, signals growing investor confidence in electric propulsion for heavy-duty maritime applications. Arc’s pivot reflects broader industry trends toward electrification in defense and logistics, where sustainability and efficiency are critical. Lee’s interview on Bloomberg Tech underscored the company’s ambition to disrupt traditional maritime sectors with scalable electric solutions.