# Why all the e-bike startups went bankrupt Source: https://www.youtube.com/watch?v=19gTziaB6SA Recap page: https://rapidrecap.app/video/19gTziaB6SA Generated: 2026-01-30T11:06:49.231+00:00 --- ## Quick Overview The e-bike startup boom, accelerated by VC money and the COVID-19 pandemic, led to unsustainable hyper-growth and subsequent collapses for major players like VanMoof and Rad Power Bikes, resulting in massive losses, supply chain chaos, and regulatory backlash, although Cowboy appears to be navigating a more sustainable path by focusing on core operations and partnerships. **Key Points:** - Rad Power Bikes filed for bankruptcy and was looking to sell the business after collecting $329 million in funding, having claimed 25% of the whole US e-bike market. - Cowboy, which raised €137.5 million, recently went bankrupt, leaving riders stranded, highlighting that even well-designed, direct-to-consumer models suffered from unsustainable growth. - The e-bike market growth, exemplified by Germany's rise to 15.7 million e-bikes owned by 2024, was artificially inflated by cheap VC money and COVID-19 demand, leading to a 'Collapse' phase. - Cowboy's 2022 revenue peaked at €41.0 million before projected drops to €33.7 million in 2023 and €21.7 million in 2024, illustrating the market correction. - VanMoof's over-expansion led to severe quality control issues, such as unreliable E-shifters and brake failures, ultimately causing their collapse, despite McLaren Applied's Lavoie acquiring the bankrupt Dutch maker. - The speaker's personal Cowboy bike experienced multiple brake failures (five times in one week), demonstrating the high failure rate of custom components. - Cowboy is now restructuring, moving assembly to France and focusing on a direct-to-consumer model with retail partners for service, aiming for a stable, profitable footing above the 'Natural' growth line. ![Screenshot at 00:04: A TechCrunch headline reveals Rad Power Bikes filed for bankruptcy and is looking to sell the business, illustrating the early signs of trouble in the e-bike sector.](https://ss.rapidrecap.app/screens/19gTziaB6SA/00-00-04.jpg) **Context:** This video analyzes the recent failures and bankruptcies of major direct-to-consumer e-bike startups, primarily focusing on VanMoof and Cowboy, contrasting their rapid, VC-fueled growth during the pandemic with the subsequent market correction, supply chain issues, and regulatory challenges that led to their downfall. The speaker uses charts and clips from the companies to illustrate the unsustainable nature of their scaling strategies. ## Detailed Analysis The e-bike industry experienced a massive boom fueled by Venture Capital (VC) money and increased demand during the COVID-19 pandemic, creating a curve where actual demand far outpaced the 'Natural' growth line. This hyper-growth, however, proved unsustainable, leading to a 'Collapse' phase for several key players. Rad Power Bikes, despite raising $329 million and claiming 25% of the US e-bike market, filed for bankruptcy and sought a buyer. Similarly, Cowboy, which raised €137.5 million, went bankrupt in 2023, leaving customers stranded. Cowboy's revenues peaked at €41.0 million in 2022 before a projected decline to €21.7 million by 2024, indicating a severe downturn. VanMoof also collapsed due to unsustainable expansion and relying on custom, unreliable parts, such as the E-shifter and brake systems, which frequently failed, leading to customer distrust. Following VanMoof’s collapse, McLaren Applied’s Lavoie acquired the bankrupt Dutch maker. The speaker notes that their own Cowboy bike suffered multiple brake failures in one week, underscoring the reliability problems stemming from custom components. In response to these challenges, Cowboy has restructured, moving assembly to France and partnering with third-party bike shops for servicing, aiming for a more sustainable, profitable business model that aligns actual performance closer to the natural demand curve. ### E-Bike Startup Failures - Rad Power Bikes filed for bankruptcy after raising $329M and claiming 25% of the US market - Cowboy went bankrupt after raising €137.5M, illustrating the collapse after the pandemic boom. ### Financial Performance (Cowboy) - Revenues peaked at €41.0M in 2022, followed by projected drops to €33.7M (2023) and €21.7M (2024), showing a sharp decline post-peak. ### VanMoof's Downfall - Suffered from unreliable custom components like the E-shifter and brakes, leading to customer dissatisfaction and eventual bankruptcy, bought by McLaren Applied's Lavoie. ### Personal Experience with Cowboy - The speaker experienced five brake failures in one week on their Cowboy bike, highlighting reliability issues with custom parts. ### Cowboy's Pivot - Moved assembly from Belgium to France in January 2024, downsized staff from 700 to 100 employees, and is now relying on third-party bike shops for service to stabilize the business. ### The Growth Model - The e-bike boom was driven by VC money and COVID demand, creating an unsustainable surge above the 'Natural' growth line, which inevitably led to a 'Collapse' and subsequent 'Cleanup' phase. ![Screenshot at 00:05: A TechCrunch headline showing Rad Power Bikes filing for bankruptcy, signaling early distress in the e-bike sector.](https://ss.rapidrecap.app/screens/19gTziaB6SA/00-00-05.jpg) ![Screenshot at 00:17: A bar chart comparing the total funding raised by three major e-bike startups: Rad Power Bikes \($329M\), VanMoof \($200M\), and Cowboy \(€137.5M\).](https://ss.rapidrecap.app/screens/19gTziaB6SA/00-00-17.jpg) ![Screenshot at 01:15: A bar chart showing the rapid growth of e-bikes owned in Germany from 2.1 million in 2014 to a projection of 15.7 million in 2024.](https://ss.rapidrecap.app/screens/19gTziaB6SA/00-01-15.jpg) ![Screenshot at 03:33: A black and white image showing police and several individuals, illustrating the real-world consequences of VanMoof's bike tracking issues and subsequent customer service failures.](https://ss.rapidrecap.app/screens/19gTziaB6SA/00-03-33.jpg) ![Screenshot at 09:41: A graph illustrating the unsustainable growth curve of e-bike demand driven by VC money and COVID, crossing above the 'Natural' growth line before the 'Collapse' and 'Cleanup' phases.](https://ss.rapidrecap.app/screens/19gTziaB6SA/00-09-41.jpg)