Electric outboard startup Pure Watercraft is selling itself for parts

GreenTech

A hopeful entrant in the emerging market of electric watercraft is out of action and being sold for parts.

Pure Watercraft was founded in 2011 with the intention of replacing gas-based outboard motors with fully electric ones. We covered the company in 2016 when it began taking preorders for its first commercial outboards, and in 2020 Pure raised $23 million to step up production. GM even took a 25% stake in Pure as part of its big investment in electric infrastructure.

The company offered a electric outboard and battery combo that could be mounted on a boat like any other outboard, or in a package with a rigid inflatable or pontoon boat. With prices ranging from $21,600 for just propulsion to nearly $100,000 for a full boat, Pure’s products were arguably no more affordable up front than gas options, but they were certainly a lot cleaner and quieter.

But a tough market seems to have put an end to Pure’s ambitions. The company entered receivership — a sort of alternative form of bankruptcy — in July, per filing documents in King County, Washington, where it is based. In August it was also reported that a planned multi-million-dollar factory in West Virginia would not be going forward.

The documents describe numerous creditors, from individual investors to banks to the big one, GM, which put approximately $35 million into the venture. That wasn’t all cash, though: listed among Pure’s assets is some $25 million worth of “manufacturing support,” “know-how,” licensing of the name, and other forms of non-pecuniary goods. (This type of in-kind investment is fairly commonplace.)

On the asset side, we find $3.6 million in “finished goods,” likely the assembled motors and battery units built by Pure, though why those would not have gone out to the more than 900 people who paid a down payment is unclear (nor is whether refunds will be issued). Another $25.5 million of “raw materials” is also listed, but what this may be is unclear — other documents detailing sale of assets like boats and batteries don’t come near that sum.

TechCrunch has asked both Pure and GM for comment on the matter. GM did not offer a substantive response and we have not yet heard back from Pure.

Electric watercraft is a growing but still nascent industry, with startups like Candela, Navier, FleetZero and Zin Boats making a play for cleaner, more efficient waterways and infrastructure.

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