Los Angeles-based marine technology company Arc has raised $50 million in a Series C funding round as it looks to expand production of electric workboats and powertrain systems across commercial and defense sectors.
The round includes participation from Eclipse, Menlo Ventures, Andreessen Horowitz (a16z), Lowercarbon Capital, Necessary Ventures, and Offline Ventures. The company said the capital will be used to accelerate production of electric tugboats and support expansion into ferry and defense vessel markets.
Arc designs and manufactures electric vessels and integrated powertrain systems, with a focus on reducing emissions, improving reliability, and lowering lifecycle costs. The company’s vertically integrated approach combines hardware and software to optimize vessel performance while reducing maintenance requirements.
“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 funding comes amid increasing adoption of electric propulsion systems across the maritime sector, driven in part by regulatory pressure and emissions reduction targets. Operators are evaluating alternatives to conventional diesel propulsion, particularly in harbor, ferry, and short-sea applications where duty cycles are more compatible with battery-electric systems.
Arc recently secured a $160 million contract with Curtin Maritime, Long Beach, Calif., to deliver eight electric tugboats. The vessels are expected to operate initially in the Port of Los Angeles, with the first tug scheduled to enter the water later this year. A second vessel is currently under construction, with additional deployments planned at ports nationwide.
According to the company, demand for electric propulsion systems is increasing across both commercial and government segments, including port operations, passenger transport, and defense applications.
“Arc has demonstrated a proven track record, a world-class team, and the right technology to lead the U.S. electric maritime market,” said Shawn Carolan, partner at Menlo Ventures. “As demand for advanced electric powertrains accelerates across commercial and defense sectors, Arc is uniquely positioned to scale.”
Arc said the new funding will support increased production capacity and continued development of its electric propulsion platform as operators continue to evaluate lower-emission vessel solutions.
