Sequoia Capital China Reportedly Invests in Aventon, Valuing Ebike Brand at $590M
Sales of Aventon ebikes soared during the pandemic’s cycling boom
VC firm Sequoia Capital China has reportedly invested in Aventon, an ebike brand, according to a recent report by TheInformation.com.
The investment values Aventon at a reported $590 million according to two anonymous sources. While the tech publication didn’t indicate the amount Sequoia invested, it did note that Aventon was valued at $200 million this year.
JW Zhang founded Aventon in 2012 as a fixed-gear bicycle brand. Zhang, who comes from a manufacturing family, noticed that electric cars were becoming more popular and wondered what the impact electric bikes would have. He quickly shifted from fixies to fine-tuning his idea for Aventon.
“There’s a greater demand for ebikes. Fixie bikes were too niche. Ebikes are about making people’s lives happier, and healthier, and people being able to go faster and longer. Ebikes are environmentally friendly compared to other transportation tools or traditional costs,” Aventon’s founder shared on the site’s blog.
Zhang made the decision to transition from fixed-gear to ebikes in 2018, before COVID-19 took hold in late 2019. The pandemic accelerated Aventon’s popularity, with sales of the ebikes skyrocketing.
Zhang told Forbes last year that he intends to build a manufacturing plant in the United States to relocate Aventon production by 2025. Despite its rapid growth, the ebike brand finds time to communicate with consumers, reading posts and frequently responding to Aventon owners on Reddit.
According to industry research, ebike sales in the United States are outpacing electric car sales. The market size for ebikes is expected to record a valuation of $50 billion by 2027, says Global Market Insights.
Aventon is currently running a limited time deal on its Soltera and Soltera Step-Through single-speed electric bikes for $999.
