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The founders of , a startup based out of both Portland and Los Angeles, next week plan to launch a new search for funding as they gear up for commercial manufacturing of their folding, electric bicycle.

The folding e-bike is not designed for long-distance rides, but rather as a gap-filler within a city’s public transportation system. Gabriel Wartofsky and Bob Vander Woude, the company’s founders, say the niche market is people who say they would use public transportation if it were easier to access.

Born out of Wartofsky’s thesis at the Art Center College of Design in Pasadena, Calif., the folding e-bike aims to solve the 鈥渇irst-and-last-mile problem鈥� that faces commuters who don’t live directly near a bus or train route.

The prototype is being tweaked to optimize the bike’s ergonomics. This second iteration will have 20-inch wheels, use 12-gauge steel, and include features like an adjustable handlebar system to accommodate taller riders.

When folded, the Conscious Commuter e-bike is 25 inches long, 11 inches wide and 25 inches high. The commercial version of the bike will be made out of recycled aluminum, which will reduce the weight to the 20-pound range, according to Vander Woude.

鈥淲e carried one through on an airplane before,鈥� Vander Woude said. 鈥淭hat’s the key design concept 鈥� getting to a smaller size form factor than any of the other competition so it can easily be carried on and off the bus or train.鈥�

Conscious Commuter has so far been funded by Vander Woude, who was a software industry investor before he focused on the e-bike. But on Sept. 1 the company is launching a grassroots funding campaign through online funding platform Kickstarter. Then officials will seek out angel investors.

A major car company that the partners declined to identify has already expressed interest in being a go-to-market, investing and incubating partner, according to Vander Woude.

Conscious Commuter plans to release 100 limited edition bikes, followed by full-volume production early in the first quarter of 2012. Manufacturing will be outsourced to a Portland company that already manufactures motorcycle frames and other electric bikes.

鈥淲e have a lean, mean manufacturing concept and (a) way of running the company,鈥� Vander Woude said. 鈥淲e decided from the word 鈥榞o’ to keep our overhead low, but we still want to help the local economy by hiring in Portland. I mean, we are focusing our manufacturing efforts here because it has the infrastructure and the ecosystem already in place.鈥�

But distribution will be one of the major challenges for the e-bike, according to Vander Woude and Wartofsky, who joined forces as Conscious Commuter Corp. in March.

鈥淭he big thing right now is that here in the U.S., we’re laggards,鈥� Vander Woude said. 鈥淓lectric bikes are very early in the adoption cycle here. It’s strong in Europe, but the lion’s share is in China.鈥�

Going after the 鈥渇irst-and-last-mile鈥� commuter niche, however, will give Conscious Commuter a strong foothold in the market, he hopes.

鈥淲e’re still hedging which way will be the best to launch 鈥� end user, corporate campus, colleges, or to a bike share program,鈥� Wartofsky said. 鈥淚deally it would be good to do either a bike share or campus solution because we would get feedback in a more controlled scenario.鈥�

As semifinalists in the Cleantech Open business competition, Wartofsky and Vander Woude have benefited from professional consulting as they hone their pitch to investors and finalize their business model. Also, Geoff Wardle, the director of advanced mobility research at the Art Center College of Design, joined the company’s advisory board.

Because of the feedback, Vander Woude said the team has shifted its sales plan to target major cities, metro transit groups, and major companies that would buy a fleet of the e-bikes, which will sell for slightly less than $2,000 apiece.

鈥淲e’re going to start by finishing the bike, but the grander plan is to integrate the e-bikes into a citywide bike share system with buses doing the redistribution,鈥� Vander Woude said.

And the e-bike may be suited for very different cities. As an innovative bicycle and a motivator to take public transit, the e-bike could answer the zeitgeist of bicycle-friendly cities like Portland as well as traffic-clogged cities like LA.