Fazua changes gears with $8m round

Germany-based electric bicycle drive system maker Fazua has secured $8m from a consortium led by Unternehmertum Venture Capital Partners, the VC affiliate of Technical University Munich’s (TUM’s) tech transfer office.

The round featured public-private partnership High-Tech Gründerfonds (HTGF), Bavarian state-owned investment firm Bayern Kapital’s Wachstumsfonds Bayern and assorted angel investors.

Founded in 2013, Fazua manufactures the Evation drive for e-bikes, hybrid bicycles which switch between pedal power and an electric system. Evation aims to replicate a natural cycling experience in electric mode and has been designed to slot inconspicuously into the bike’s down tube.

Fazua will use the $8m to pursue business growth and stronger demand, investing in product development and a new office with increased capacity due to open this spring. The money will also go towards recruitment in areas including quality control, production management and electronic development.

HTGF, Bayern Kapital and assorted individual investors backed Fazua’s $3.2m series B round in March 2017, after HTGF and Bayern joined private investors for a series A round of undisclosed size in 2015.

Fazua had secured an undisclosed amount of seed funding from HTGF, Bayern and one angel investor in 2014.

Benjamin Erhart, partner at Unternehmertum Venture Capital Partners, said: “Fazua has attained a very strong and promising market position. Within the fast-growing e-bike market, its drive system is the leader for light and very light products.”