In the fast-paced realm of electric mobility, Swedish company Cake navigated turbulent waters in 2023, striving to secure its foothold amidst challenging circumstances. Founder and CEO Stefan Ytterborn revealed in a recent interview the company's arduous journey, including discussions with industry giants like Harley-Davidson, in a bid to chart a path forward.
Despite extensive talks with potential partners, including automakers, Cake faced an unfortunate fate, succumbing to bankruptcy. However, Ytterborn remains resolute, expressing hope for a revival post-bankruptcy with a strategic ally by its side.
With a vision of crafting high-design electric motorcycles and mopeds at scale, Cake initially garnered significant investment, including a $14 million Series A round in 2019 and a substantial $60 million Series B round in 2021. However, as the investment landscape shifted, Cake encountered mounting challenges in securing additional funding, particularly amidst the VC retreat observed towards the end of 2022.
Undeterred by setbacks, Cake broadened its horizons, shifting focus towards North American investors, only to face further hurdles with the Silicon Valley Bank crisis. Despite proactive efforts, including engagement with Deutsche Bank and investment bank Numis, Cake's pursuit of financial stability remained elusive.
Ytterborn hinted at the potential synergy between Cake's offerings and the evolving urban landscape, emphasizing the importance of partnerships with established automakers in navigating regulatory complexities and urban mobility demands.
As Cake embarks on the bankruptcy process, Ytterborn remains steadfast in his commitment to salvaging the company's vision, seeking a partner to fuel restructuring efforts and pave the way for a renewed journey forward.
Amidst the challenges and uncertainties, Ytterborn's unwavering determination underscores the resilience of Cake, poised to weather the storm and emerge stronger in the ever-evolving landscape of electric mobility.