Pure Watercraft, the Seattle-based makers of electric outboard motors that hoped to revolutionize the pleasure boating industry and raised investment from General Motors, is “being sold for parts” according to a report from TechCrunch over the weekend.
The company entered into receivership in King County in July, a process often used by companies that are struggling financially. When a company is placed in receivership, a trustee is legally appointed to oversee its assets and business operations.
It’s not clear why Pure Watercraft hit such rough waters, and we’ve followed up with the company to learn more.
Founded in 2011, Pure Watercraft set out to develop electric propulsion for motorboats with an ultimate goal of replacing gas-powered systems and disrupting the $44 billion global leisure boating industry.
The startup raised $37 million, including a $23.4 million Series A round in September 2020. General Motors acquired a 25% stake in the startup in November 2021 in a cash and payment-in-kind stake that cost the automaker $150 million, and raised Pure’s valuation to $600 million at the time.
The company has millions of dollars of assets and inventory, including various manufacturing equipment and boat parts, according to the receivership documents filed in July. The list of creditors includes individual investors, auto dealerships, banks, GM, and others. Court documents also list hundreds of customers who put down $100 deposits.
More recent receivership documents filed in court show ongoing negotiations with GM and potential acquirers of the company’s assets. The trustee for Pure Watercraft’s assets is a firm called Turnford Consulting, which has been working with Pure to manage asset liquidation options.
The company, which employed more than 100 people at its peak, scuttled plans for a multi-million manufacturing facility in West Virginia where it planned to employ up to 100 more people, according to a report in August.
“GM frequently makes strategic investments in technologies that show promise to help advance our vision of an all-electric future,” said Sanaz Marbley, director of Strategic Technology Communications, in an email to GeekWire. “It’s unfortunate to hear about Pure Watercraft’s recent difficulties, but our work to help accelerate EV adoption continues and our commitment to that vision remains as strong as ever.”
Led by founder and CEO Andy Rebele, Pure was headquartered at a facility on the north end of Seattle’s Lake Union. The company developed an outboard motor and a battery-powered engine that was quieter and more environmentally friendly than traditional gas-powered outboard motors. The electric propulsion was initially intended for use on vessels such as rigid inflatables and coaching launches like those used by rowing and sailing teams.
But with GM’s backing, Pure quickly unveiled the Pure Pontoon, a high-performance version of the ubiquitous “social boating” craft that is popular on U.S. lakes and other waterways. Pure’s version featured a hydrofoil system added to the hull, to lift a lot of the mass of the 25-foot boat out of the water to reduce drag and cut the energy required at speed. GeekWire rode on the pontoon during test rides in April 2023.
Earlier this year, Rebele shared a photo on LinkedIn from Beech Bottom, W. Va., where Pure planned a production line. And a few months ago, he was promoting the pontoon in a video he shared. Pricing for the pontoon started at $75,000 for a single-outboard model and $95,000 for a twin-outboard model. The company’s website is still active, including a page for pre-ordering a boat.
Rebele, a longtime investor and entrepreneur, is founder and former CEO of CityAuction, which sold to IAC/InterActive Corp for $54 million in 1999.
“This is a lot more of a challenge and an interesting process than it would have been trying just to stamp out another internet thing,” he told GeekWire in 2016 as Pure Watercraft got set to accept pre-orders for its first electric outboard.
GeekWire reached out to Rebele for comment Monday on the latest developments and we’ll update this story when we hear back.
Pure won Sustainable Innovation of the Year at the 2023 GeekWire Awards.