cowboy E-Bike Faces Financial Reset, Investors See Value Erased

Belgian financial press De Tijd and L’echo report that electric bike and software pioneer Cowboy has likely spent a significant portion of the Crowdcube investment raised from approximately 8,000 individuals. A potential takeover by a French cycling consortium is also experiencing delays.

The issues facing Cowboy mirror those experienced by VanMoof in 2023. Both companies struggled with a backlog of service issues due to relying on direct brand management instead of a widespread network of service centers. The Belgian papers suggest Cowboy’s later attempt to partner with retail repair shops may have been too late to prevent further complications.

A proposed restructuring plan would essentially reset Cowboy’s balance sheet, writing down investor participation to just 4.9% of the business. Crowdfunding investors would recieve an even smaller share.

Under the plan, all existing shares would be converted into new, non-voting shares with a minimal par value. This write-down impacts the company’s founders and venture capital firms like Exor and Index Ventures, who invested a combined €134 million in Cowboy since 2017. Despite a €172 million valuation in 2022, thes firms have also seen nearly all of their investment value eroded.

Brussels-based technology expert and investor…