Electric motorcycle company Cake, which recently filed for bankruptcy, revealed that it had engaged in discussions with Harley-Davidson and other automakers in a bid to secure its future. Despite the efforts, these talks did not materialize into successful partnerships for the Swedish startup. However, Cake’s founder and CEO, Stefan Ytterborn, remains optimistic about the possibility of emerging from bankruptcy with a strategic partner.
Key Takeaway
Cake, the electric motorcycle company, sought partnerships with major automakers, including Harley-Davidson, in an effort to overcome financial difficulties before ultimately filing for bankruptcy. The company’s founder remains hopeful about finding a strategic partner to support its restructuring and future endeavors.
Seeking Partnerships Amid Financial Struggles
Ytterborn disclosed that Cake had held approximately 40 meetings in the past three days, primarily with two-wheeler brands, to explore potential collaboration opportunities. The company, which had previously raised significant funds through Series A and Series B rounds, encountered challenges when attempting to secure a Series C round, as investor interest waned, particularly from venture capitalists.
Amid these financial setbacks, Cake redirected its focus towards North American investors, but faced further obstacles following the Silicon Valley Bank crisis. Subsequently, the company engaged Deutsche Bank and investment bank Numis to pitch its proposals to automakers, including Harley-Davidson, with the aim of securing investments or strategic partnerships.
Challenges and Future Prospects
Despite the hurdles faced by Cake, Ytterborn emphasized the importance of finding a partner to invest in the company and facilitate its restructuring. He acknowledged the difficulties posed by the current financial landscape and expressed determination to navigate through the challenges.
