Chammas & Marcheteau provided legal counsel to Vela (Sail for Goods) in connection with its successful €40 million fundraising effort. This round saw participation from prominent French and American investors, including Crédit Mutuel, through its Révolution Environnementale et Solidaire fund, Bpifrance, and the 11th Hour Racing Foundation. Additional support came from regional entities such as Normandie Littoral and Normandie Participations, alongside notable private investors, including Benoist Grossmann and Pascal Marty.
Founded in 2022 by Pierre-Arnaud Vallon, Michaël Fernandez-Ferri, Pascal Galacteros, Thibault Charles, and renowned navigator François Gabart, Vela is a French start-up specialising in the design and ownership of cargo sailing vessels. Vela is committed to providing innovative, efficient, and sustainable freight transport solutions through its 100% sailing-powered cargo ships. The company’s initial shipping route will operate between France and the eastern coast of the United States.
This capital injection will be instrumental in financing the construction of Vela's first 100% sailing-powered giant cargo trimaran, a key milestone in its ambition to revolutionise maritime transport. Magellan Finance served as financial advisors throughout the process.
Q&A with Xavier de Taisne, Partner at Magellan Finance
Xavier, can you tell us what Magellan Finance’s specific role was in structuring and facilitating the fundraising for Vela, and how did you collaborate with other stakeholders throughout the process?
Magellan Finance played a crucial role in structuring the debt component of the financing through an innovative financial arrangement. Coordination was essential between Vela and Avolta, which managed the equity fundraising, to ensure smooth progress and adherence to the projected timeline. Our objective was to maintain alignment and respect the interests of all parties involved throughout the process. This required close collaboration to ensure the successful integration of various financial and strategic elements, ultimately leading to a streamlined and efficient fundraising process.
Could you share any insight into how the valuation of Vela was determined, and what key factors were emphasised to attract such a wide range of investors?
The valuation of Vela was built around several critical factors, including its pioneering position in sustainable maritime transport, the innovative design of its 100% sailing-powered cargo vessels, and the strategic importance of its environmentally friendly approach. Additionally, the company's founding team, including experienced professionals and renowned navigator François Gabart, played a key role in building investor confidence. By emphasising Vela's potential to revolutionise freight transport and contribute to reducing carbon emissions, we were able to attract a diverse group of investors, ranging from institutional to private entities committed to supporting sustainable innovations.
How did Magellan Finance help Vela align its financial goals with the strategic objectives of the investors, and how was this secured to support their future goals?
We ensured the alignment of Vela's financial goals with investor interests by structuring a security package that balanced the early-stage nature of Vela with the need for investor protection. This included strategic project guarantees from Bpifrance, covering 75% of the senior financing, along with a mortgage on the vessel and specific financial covenants. These measures created a protective framework that reassured investors while supporting Vela's strategic ambitions, enabling them to confidently move forward with their plans to revolutionise maritime transport.
What role, if any, will Magellan Finance play in providing ongoing financial support to Vela following this fundraising round, particularly as they embark on the construction of their first cargo trimaran?
In this fundraising round, financing was secured for the construction of Vela's first cargo vessel. Looking ahead, Vela plans to fund four additional vessels by 2026. Subject to Vela's agreement, Magellan Finance aims to continue its involvement by facilitating both senior and junior financing through an asset-co model, ensuring ongoing support as the company scales its operations. This long-term financial backing will be crucial in realising Vela's vision of sustainable maritime transport.
