A promising new entrant in the emerging market for electric personal watercraft is going out of business and being sold off for parts.
Pure Watercraft was founded in 2011 with the goal of replacing gasoline-powered outboard engines with all-electric alternatives. We covered the company in 2016 when it began taking preorders for its first commercial outboard engines, and in 2020 Pure raised $23 million to ramp up production. GM acquired a 25% stake in Pure as part of a larger investment in electric infrastructure.
The company offered electric outboard and battery combos that could be installed on a boat like any other outboard, or packaged with a rigid inflatable or pontoon boat. With prices ranging from $21,600 for propulsion alone to nearly $100,000 for the entire boat, Pure's products are initially less affordable than gas options, but they are much cleaner and quieter.
But tough market conditions appear to have put an end to Pure's ambitions: The company entered receivership, an alternative form of bankruptcy, in July, according to documents filed in King County, Washington, where it is based. In August, it was reported that a planned multimillion-dollar plant in West Virginia was also being scrapped.
The filing states that a number of creditors, from private investors to banks to big GM, have invested about $35 million in the venture, though not all of it in cash: Pure's assets include about $25 million worth of “manufacturing support,” “know-how,” licenses to the name, and other non-monetary instruments (this kind of in-kind investment is fairly common).
In terms of assets, $3.6 million in “finished goods” was found, presumably motors and battery units assembled by Pure, though it's unclear why that wasn't given to the 900-plus people who paid down payments (and whether they'll be refunded). There's also $25.5 million in “raw materials,” but it's unclear what this is. Other documents detailing the sale of assets like boats and batteries don't come anywhere close to that figure.
TechCrunch reached out to both Pure and GM for comment on the matter, but GM did not provide a specific response and Pure has not yet responded.
Electric shipping is a growing but still nascent industry, with startups such as Candela, Navier, FleetZero and Zin Boats working towards cleaner, more efficient waterways and infrastructure.