New Zealand's Vessev Secures $19 Million in Funding to Enter the U.S. Market

en.Wedoany.com Reported - New Zealand deep-tech maritime company Vessev has completed a $19 million Series A and follow-on funding round and signed its first U.S. customer, FlyTahoe, marking its entry into the U.S. market. FlyTahoe, headquartered in Lake Tahoe, California, plans to operate an electric hydrofoil passenger ferry network on the lake.

The round was led by Australian venture capital firm Blackbird Ventures, with GD1 and Rypples joining as new investors, alongside participation from K1W1, Icehouse Ventures, Shasta Ventures, NZVC, and existing angel investors. The funds will be used for internal production scaling of the VS–9 vessel, expansion of the global market development team, development of onboard software and telemetry platforms, R&D for larger vessel models, and preparation for U.S. manufacturing.

Vessev co-founder and CEO Eric Laakmann stated that hydrofoil technology redefines the possibilities of water transportation, combining electric propulsion, advanced hydrofoil systems, and software to make vessels more efficient, more passenger-friendly, and easier for operators to scale. Lake Tahoe welcomes over 15 million visitors annually, with up to 20,000 vehicle trips daily between the north and south shores, where congestion has long been a persistent issue. FlyTahoe founder and CEO Ryan Meinzer said electric hydrofoil ferries will offer a faster alternative to congestion while protecting Lake Tahoe's clarity.

FlyTahoe operates the first electric flying ferry in the United States, aiming to halve travel time for the 20,000 daily drivers commuting between North and South Lake Tahoe, while protecting lake water quality by eliminating road sediment and emissions. The company stated that the 10-fold operational efficiency gain from electric hydrofoils makes this model potentially profitable, with flying over water set to be cheaper than driving around the lake. FlyTahoe chose the VS–9 for its commercial operation positioning, panoramic glass window passenger experience, and its size and charging design that integrate easily with existing dock infrastructure. Its transportation network has been included in the Tahoe Regional Transportation Plan (RTP) and still requires permits from the Tahoe Regional Planning Agency (TRPA), for which FlyTahoe is actively applying.

Vessev's U.S. promotional campaign unfolds in three stops. The first is in New York, where the company will debut ahead of Climate Week NYC and continue demonstrations throughout the event. In late September, coinciding with the 250th anniversary of the United States, the Washington stop will partner with the D.C. Mobility Innovation District to host demonstrations for government, media, investors, and industry figures on the Potomac River at the Navy Yard waterfront. The third stop is on-water demonstrations at Lake Tahoe.

The VS–9's hydrofoil system, inspired by America's Cup racing design, dynamically adjusts up to 100 times per second. During operation, the hull lifts above the water, eliminating hull drag and producing virtually no wake, delivering a smooth ride three times more efficient than conventional vessels. Combined with sensing and telemetry technology, this opens up entirely new water transportation applications. The VS–9 has logged over 11,000 nautical miles, is a 10-seat battery-electric vessel, has achieved commercial certification and entered service, with a range of 40 nautical miles at full load and 50 nautical miles at light load. Demand spans five continents, orders continue to grow, and larger platforms are in development.

Vessev believes electric hydrofoils are becoming a foundational technology for maritime transportation. They enable longer range and simpler charging for battery-electric propulsion, and make smaller, more flexible vessel designs and superior onboard experiences possible; no comparable technology in aviation or automotive offers performance improvements of this magnitude. Blackbird partner Phoebe Harrop Meadows noted that Vessev brings engineering expertise from Apple, Tesla, the America's Cup, and Rocket Lab into a vast and long-stagnant industry, and its combination of hydrofoil technology and software reduces operating costs, improves passenger experience, and demonstrates the potential of waterways to function as near-zero-emission transportation networks.

Regarding U.S. manufacturing, Vessev plans to partner with American shipyards while continuing to design, engineer, and manufacture hydrofoils, hardware, and flight control systems in-house, maintaining a high degree of technology stack integration and quality control. The company is headquartered in Auckland, New Zealand, with a team drawn from the America's Cup, Rocket Lab, Apple, and Tesla. Currently, Vessev is working with multiple cities and operators worldwide, including projects in Northern Ireland, Sydney, and Hobart, advancing the transformation of underutilized waterways into scalable transportation networks.