Rivian's spinout has also secured $150 million, with the e-bike serving merely as a starting point.

      Also, the micromobility startup that emerged from Rivian last year, has secured $150 million in a Series D funding round, bringing its valuation to over $1 billion. The company informed Fortune that the funds will be directed towards its primary goal, which is not e-bikes but developing small autonomous vehicles.

      Prysm Capital led the funding round, as reported by TechCrunch, with existing investors Eclipse, Greenoaks, and MVP Ventures also participating. This latest funding brings the total investment in the Palo Alto-based company to $455 million within less than two years. Fortune, which initially reported the funding, noted that the valuation has now surpassed $1 billion—a significant figure for a company that's only two years old and whose only product currently being shipped is a bike.

      At present, Also sells an electric bike, but its founders emphasize that they are creating a platform. The company develops its own motors, batteries, computing, and software, which they claim can be integrated into vehicles smaller than cars, ranging from pedal-assist delivery quads to fully autonomous vehicles.

      Chief Executive Chris Yu presented the bike as merely a starting point rather than the main focus of their business. He stated, “Its market is every vehicle smaller than a car,” explaining that using a 7,000-pound van or SUV for one passenger is impractical in terms of cost and congestion, which also applies to the delivery of smaller items like a toothbrush or a burger.

      The new funds will support their push towards autonomous vehicles. Also is reportedly working on developing multiple self-driving models for both goods and passengers, all of which are based on the same electric architecture as their consumer bike and delivery quad. Yu mentioned that the goal is for small-vehicle autonomy to become an ordinary part of the transportation landscape within five years, existing alongside self-driving cars.

      The shared architecture forms the basis of their business proposition. Instead of designing specialized machines for each purpose, Also aims to utilize a single set of parts across bikes, delivery quads, and eventually driverless pods. They assert that constructing various designs on one foundational framework will ensure economic viability in the lower segment of the market, as a full-sized robotaxi would be excessive.

      Where Also differentiates itself from simply producing “nicer e-bikes” is in its commercial endeavors. The company already provides pedal-assist cargo vehicles to Amazon and has a multi-year agreement with food delivery service DoorDash to develop autonomous last-mile delivery robots. These robots will use the same motors and computing systems as the bike.

      Also originated as an internal project within Rivian, motivated by founder RJ Scaringe’s interest in micromobility. The team included individuals from Apple, Google, Specialized, and Tesla, and the company spun off in early 2025 with an initial funding of $105 million, followed by a $200 million Series C round led by Greenoaks this year, with Prysm participating alongside strategic investment from DoorDash.

      Rivian maintains a tight connection with the company, as Scaringe co-founded Also and serves as its chairman, with the automaker retaining a minority stake. This relationship is both strategic and financial, even as Rivian pursues its own path to profitability, with its expanding fleet of vehicles providing valuable driving data that Also expects to leverage for training its self-driving technology.

      Jay Park, who led the funding round for Prysm, highlighted the connection to his firm's early investment in Rivian. “We backed Rivian early because we saw the potential behind wonderfully designed, vertically integrated electric trucks, vans, and SUVs,” he stated. He added that Also is applying a similar approach to smaller vehicles.

      The founders have experienced rapid growth and substantial funding. Also raised $105 million upon its exit from Rivian in early 2025, followed by a $200 million Series C, and now has successfully completed the $150 million Series D. Their team includes alumni from notable companies such as Apple, Google, Specialized, and Tesla, with Yu himself being a former product chief at Specialized and having a background in aerospace.

      However, the current fundraising occurs during a precarious period for the e-bike sector. Companies like Rad Power Bikes have filed for bankruptcy, Juiced Bikes has ceased operations, and Porsche has quietly exited the e-bike market. Nonetheless, the larger micromobility market, encompassing bikes, scooters, and small electric delivery vehicles, is valued at approximately $50 billion, with projections indicating it will more than double by the early 2030s.

      Micromobility analyst David Zipper has pointed to the recent failures as indicative of market oversaturation rather than a lack of supply. However, Yu countered that these issues reflect the difficulty in creating desirable products rather than indicating a weak market. He argued that unreliable batteries and cumbersome anti-theft locks have discouraged potential riders.

      Also has faced challenges of its own, with delays in the launch of its initial bike model, which recently started shipping. The company has since opened pre