Auckland-based electric boat builder Vessev has secured $32.6 million in new funding to scale up local manufacturing and launch its hydrofoiling vessels into the United States market, according to the company. The financing arrives as the firm targets production of one VS–9 vessel every five weeks by 2027.
Vessev Secures First US Customer on Lake Tahoe
Vessev has already locked in its first American buyer following the capital raise. California operator FlyTahoe has ordered multiple Auckland-built VS–9 electric hydrofoiling vessels to support a proposed passenger transit network on Lake Tahoe, according to company announcements. The initial craft, named the VS–9 Kermadec, has already shipped to the US. Vessev plans a public debut for the vessel during New York Climate Week before moving the craft to Washington DC and Lake Tahoe for on-water demonstrations later this year.
Vessev co-founder and chief executive Eric Laakmann told 1News that entering the US market marks a major operational milestone. “It’s the largest marine boating market in the world and we’re particularly excited about FlyTahoe and their operation,” Laakmann said.
Commercial Rollout Across New Zealand and Australia
While eyeing international expansion, Vessev maintains active commercial deployments closer to home. One VS–9 vessel currently operates commercially with Fullers360 in Auckland, ferrying passengers from the Viaduct into the Waitematā Harbour as the world’s first certified electric hydrofoiling vessel in a commercial ferry fleet, according to the company. Additional transit projects remain underway across several Australian cities, including Hobart, Perth, and Sydney. Vessev reports that its active fleet has logged more than 11,000 nautical miles across New Zealand and Australia.
Did you know? Vessev’s hydrofoil systems dynamically adjust to changing water conditions up to 100 times per second, maintaining stability while the hull remains lifted entirely above the surface.
Hydrofoil Technology Overcomes Water Resistance
Traditional electric watercraft face a major physics hurdle: water drag. According to Laakmann, overcoming that resistance dictated the engineering approach behind the VS–9. “Water is incredibly heavy, it’s incredibly sticky, and so when you look at trying to make boats electric, it’s hard because it’s so inefficient to move a boat through water,” Laakmann told 1News. By deploying submerged hydrofoils to lift the hull entirely out of the water at speed, Vessev eliminates hull drag. The company states this design makes the VS–9 about three times more efficient than conventional vessels, enabling a range of up to 40 nautical miles with a full 10-passenger load and 50 nautical miles with a light load.
Scaling that design past prototypes presented its own manufacturing hurdle. “It’s especially hard with this technology, but if you want to do production, like, build the machine that builds the machine, that is 10 times harder,” Laakmann said. Vessev is building a dedicated production line inside its Auckland headquarters designed to roll out 10 boats annually for global customers.
Why New Zealand Tech Firms Look Overseas for Scale
Vessev’s trajectory mirrors a broader trend among New Zealand technology companies, which typically develop core innovations domestically before scaling into larger international markets. Technology investment expert Mitali Purohit noted that New Zealand is carving out distinct global specializations. “We’re slowly but surely becoming experts in certain industry sectors. So, for example, space tech, mobility, fintech, health tech, and climate tech,” Purohit said. Operating from a domestic base of just over five million people makes international expansion essential for long-term growth, according to Purohit, who added that overseas investors routinely validate the speed and quality of Kiwi innovations delivered abroad with limited resources.
Frequently Asked Questions
How many passengers can the Vessev VS-9 carry?
The VS-9 is a 9-meter battery-electric vessel designed to carry up to 10 passengers.
What is the range of the VS-9 electric hydrofoiling boat?
The vessel has a range of up to 40 nautical miles when carrying a full load, and up to 50 nautical miles with a light load, according to company specifications.
Where are Vessev boats manufactured?
Vessev builds its vessels at a specialized production facility located in Auckland, New Zealand, with current output scaling toward 10 boats per year.
Which US operator purchased the first vessels?
California-based operator FlyTahoe ordered multiple VS-9 vessels to support a proposed passenger network on Lake Tahoe.
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