Bird, a Scooter startup that has been hugely hyped, has completed a funding round of $300 million with Sequoia Capital leading the way.
The funding round, which was long anticipated, was announced by the company this week with Roelof Botha from Sequoia becoming a member of the board of directors for the company. This is Bird’s second funding round over the last few months, sending the company above a reported valuation of $1 billion during May to a June valuation of more than $2 billion.
In March, Bird was valued at just $300 million, but the hype of the Scooter industry has been impressive over the last few months as investors hand over large sums of money for what is considered the next popular method of transportation in large metropolitan areas.
In this latest round of fund raising, the investors joining for the first time include B Capital, Accel, CRV, Greycroft, Sound Ventures and e-ventures; while previous investors include Craft Ventures, Valor, Index Ventures, Upfront Ventures and Goldcrest Tusk Ventures.
Scooter mania captured the hearts of many in Silicon Valley as well as with investors overall, including Vice President of Business at Bird Paige Craig who left VC to be with Bird.
The quick influx of investor money into the industry or the revolving door processes of fundraising are not that uncommon, and especially when it comes to hot areas of investing, although the scooter industry has definitely exploded onto the scene in a much fast way than most.
The fund raising round by Bird comes amidst rumors of competitor Lime having a mega round of fundraising with the company reported to have raised in excess of $250 million led by its biggest investor GV. Skip has also been able to raise $25 million.
One investor said that the Bird has built the market’s best product and while there are additional startups entering the space, Bird remains the best.
Others feel the same way about Bird, whose scooters can be found throughout cities such as Los Angeles. For trips only a few miles down sidewalks or wide-lane roads, a quick code scan and off the user goes is now considered worth the few dollars it costs to save time.
However, hurdles do exist as the industry moves forward. In San Francisco, the company faces significant pushback by the local government and for the time being scooters are not allowed on sidewalks. There is also a big shadow cast about over the industry of what could happen regarding tariffs, which could increase the overall cost of each scooter.