The archive · Hardware & Devices · Strategic decision · 2016–2024
Cake's premium e-motorcycle bet dies in a Feb 2024 bankruptcy after Series C fails
Swedish e-moto maker Cake raised $74M to build high-design electric bikes, then filed for bankruptcy when its Series C collapsed.
Cake (CAKE 0 Emission AB)
What the business is
Stockholm-based maker of premium electric motorcycles and mopeds (Kalk, Osa, Makka, Bukk) sold direct to riders at high price points.
Starting capital：$74M raised — $14M Series A (2019), $60M Series B led by AMF (2021)
How it started
Founded in 2016 in Stockholm by Stefan Ytterborn, Cake set out to build high-design electric motorcycles and mopeds (Visordown; Electrek). It raised a $14M Series A in 2019 and a $60M Series B in 2021 led by Swedish pension fund AMF, meant to fund plants in Europe, North America and Asia plus retail expansion (TechCrunch).
What happened
Cake began trying to raise a Series C in August 2022; by late 2022 VCs were pulling back and, in Ytterborn's words, 'the whole space just collapsed.' The Silicon Valley Bank crisis spooked late-stage interest in spring 2023; Cake hired Deutsche Bank and Numis to pitch automakers including Harley-Davidson, but no deal closed. Recalls in late 2023 — a steering column that could break on a moped, and a Kalk that caught fire at a South Korean dealership — plus suspended January 2024 salaries signaled the end. A lead investor's withdrawal tipped the company into bankruptcy on 2024-02-01 (TechCrunch; Electrek).
How it ended up
Filed for bankruptcy on 2024-02-01; a Swedish trustee was appointed and most US inventory was sold off. In June 2024, Norwegian automotive company Brages Holding AS acquired the Cake brand and its intellectual property, planning to relaunch it through a dealer network (Electrek 2024-06-19).
Background
Cake was a Stockholm-based maker of premium electric motorcycles and mopeds, founded in 2016 by Stefan Ytterborn with the ambition of becoming the design-led name in e-mobility — minimal Scandinavian styling, aluminum and carbon frames, and direct-to-consumer sales at luxury price points.
The company raised a $14M Series A in 2019 and a $60M Series B in 2021 led by Swedish pension fund AMF, meant to fund factories and retail expansion across Europe, North America and Asia. But from August 2022 the Series C never closed: Ytterborn told TechCrunch that VCs pulled back ('the whole space just collapsed'), the Silicon Valley Bank crisis spooked North American interest in spring 2023, and pitches to automakers including Harley-Davidson went nowhere.
Recalls in late 2023 — a steering column defect and a Kalk fire at a South Korean dealership — plus suspended January 2024 salaries preceded the end. After a lead investor withdrew, Cake filed for bankruptcy on 2024-02-01; a trustee was appointed and most US inventory was sold off. In June 2024 Norwegian company Brages Holding AS bought the brand and its IP out of bankruptcy, announcing a relaunch built around dealer distribution.
What has to be true
- Cake pursued premium pricing and design over volume, so it needed years of venture support to reach profitable production scale.
- The Series C window closed just as micromobility funding collapsed, and a single lead investor's withdrawal tipped the company over the edge.
- Recalls and unpaid salaries in late 2023 destroyed the operational runway while the company was still hunting for a strategic buyer.
- A design-first brand without a strong retail network had no fallback revenue when investors stopped funding the growth story.
What can be applied
Design buzz can't replace distribution: a capital-heavy hardware brand with premium pricing and thin retail reach dies when VC taps close, however loved the product is.
Aftermath
As of 2026-09-02 CAKE 0 Emission AB is gone: it filed for bankruptcy on 2024-02-01 and a Swedish trustee was appointed to wind down the estate. In June 2024, Norwegian automotive company Brages Holding AS, owned by Espen Digernes, acquired the Cake brand and all of its intellectual property out of bankruptcy. Brages said it planned to rebuild Cake around a robust retailer distribution network and scale it into a Scandinavian premium electric two-wheeler brand, with a small team already working on the relaunch business plan.
Sources
- Boutique e-motorcycle startup Cake files for bankruptcy
- Cake sought deals with Harley-Davidson, automakers before bankruptcy
- Breaking: Electric motorcycle company CAKE quietly files for bankruptcy
- E-motorcycle brand CAKE went bankrupt. Here's how they're planning a comeback
- Electric Motorcycle Manufacturer Cake Files for Bankruptcy
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