The market for e-bike motors is in virtual lockdown by the industry giants: companies like Bosch, Shimano, and Brose have taken control, flexing their corporate muscles and channelling millions, if not billions, into R&D and production. However, this market dominance is now being challenged by the emergence of exciting new startup companies, like Munich-based FAZUA, who are relishing the chance to revolutionize the eMTB as we know it.
FAZUA’s brand history reads like a parable from a “How to start your own business” manual: five friends that grew up together in a sleepy Bavarian village decide to launch their own company after graduation. The concept was conceived by Johannes Biechele, who, after spending time working for an e-bike motor manufacturer while at university, wondered why no one else had attempted to develop a motor with a lighter weight, more compact dimensions, and more minimal battery capacity. He envisioned a motor designed for riders who prioritise a natural ride sensation and the ultimate integration of motor and machine instead of masses of power.
The concept gains traction
Within a short time, the concept of the FAZUA Evation motor had already attracted a number of companies looking for a lightweight motor – including FOCUS and Cube, who expressed a keen interest. Right now, there are sixteen brands that have deployed the FAZUA motor on various bikes and the figure is constantly growing. FAZUA’s more compact approach paved the way for a new sort of e-biking, which ushered in the era of e-road bikes, urban models, and lightweight eMTBs. For FAZUA, this demand can be seen as a major success, but there are still certain requirements to meet.
No show without the dough
“Capital is one of the main things you need to be able to really enter the market for motors,” attests Fabian Reuter, co-founder and CFO at FAZUA. Accordingly, the five founders rapidly understood the importance of their financial backers. The original seed fund, back in 2014, came from High-Tech-Gründerfonds, Bayern Kapital, and other business angels, aka private investors. The injection of capital allowed the team to not only develop the Evation motor, but also expand the company with new employees and office space.
Startup vibes on the southern side of Munich
FAZUA’s trajectory since its launch has been almost as astronomically steep as the rockets from Airbus Defence and Space, who actually used to be housed in the same building that FAZUA call home today. A few months ago the Munich-based team closed another round of investments with 6.5 million Euros, leaving them in a position to keep progressing. FAZUA’s market growth is reflected in its increasing number of employees: from the earliest days with the five founders, it wasn’t until 2016 that they first welcomed two additional staff members, before rapidly expanding to a team of sixteen. At the start of 2018, FAZUA counted more than fifty people from twelve different countries in its books.
The new HQ in the south of Munich is home to all of the brand’s departments, with development, sales, marketing, and purchasing spread over the first and second floors, while the ground floor and basement are reserved for the production of all their motor units.
The best meetings tend to take place in the hallways – the lack of hierarchy lends itself to productivity.
Despite their rapid growth of recent years, FAZUA retains its informal, startup feel – and not just because of the table football in the cafeteria. There’s a distinct lack of hierarchies here, with spur-of-the-moment meetings taking place in hallways and stairwells. The reason is pretty simple: FAZUA can’t afford to throw resources or time at complex administrative procedures, nor form themselves into a vertical, hierarchical structure like companies in days gone by. Keeping their staff motivated is one of their key concerns, ensuring that the drive to perform well for the brand and cause is kept fuelled. When it comes to hiring new staff, the focus lies on what skills the potential employee can bring the company, rather than specific academic qualifications. Felix Kuffner, head of marketing and a prime example of someone with transferable skills who joined FAZUA looking for a career change, sums it up like this: “You’re in the right place looking for a job at FAZUA if you want to make a difference in the world and have a real passion for doing this.”
Getting a plan on the path to success
Given the intense and ever-increasing demand for the Evation motor, FAZUA are currently focusing on improving their business’ efficiency. With a ten-fold, year-on-year increase in production, it’s easy to see that this strategy is paying off with more effective internal processes helping to streamline and increase production. A tour of the factory reveals how they’re constantly preparing for the future: the ground floor is not only where goods enter and exit, but also where the so-called Drive Pack is assembled, which consists of a motor, battery, electronics, and casing. More than 80% of the parts used are produced in Germany. Assembling each motor is carried out in an assembly-line manner with the meticulous recording of serial numbers so that the whole batch can be verified if a defect should arise. At the end of the process, there’s an End-of-Line test for every single part that has been produced; nothing goes out of the HQ without strict quality control. The rest of the system – more specifically, the remote unit and bottom bracket gearing system – is built on the floor below.
As we make our way down to the basement, we’re half-expecting to be deafened by the din of production in order for FAZUA to meet the demand, but it’s remarkably calm. The prevalence of order stems back to the fact that the brand liaises with manufacturers, ensuring that order numbers are met with sufficient lead times.
The guys at FAZUA have clearly got a savvy plan. For the year ahead they’re not only vocal about doubling their production, but also about upholding their conviction to remain ahead of the competition when it comes to motor development. The young German company’s drive for expansion is embodied in the brand-new building taking shape next door, literally the concrete symbol of the next stage in FAZUA’s journey.
This article is from E-MOUNTAINBIKE issue #014
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