Founded in 2017, Vancouver’s Damon Motors is behind the tech-forward HyperSport electric motorcycle.
Originally announced in 2023, the HyperSport promises a range of up to 200 miles and a top speed of 200 miles per hour, as well as a novel production design and new safety technologies such as an AI-enhanced 360º collision warning system.
“I want nothing more than for everyone to experience a Damon HyperSport,” says Chief Executive Officer Jay Giraud. “It’s truly a game changer for the ages.”
But things are seldom so simple as getting what we want.
The company currently boasts more than $100 million in potential revenue based on over 3,000 reservations—so far—for Damon’s patented electric bikes. However, production and commercialization is not expected until 2026 due to some snags encountered by the startup.
CEO Giraud this week issued an official update on Damon’s development, challenges, and roadmap. He says “late-stage engineering is mostly complete, with vehicle mechanics 90% finalized,” with other systems 70-90% complete.
One critical concern for Damon moving forward, however, is securing “adequate funding.” Giraud says progressing toward the next stages remains “subject to our ability to raise sufficient capital to make this substantial investment.”
In the spring of 2022, Damon raised a US$26M Series B financing. But market momentum halted and the company fell short of securing a key Series C follow-up.
“Following the volatile SPAC era, the financial landscape shifted dramatically,” Giraud recalls. “The bursting of this bubble led to a severe downturn in the markets, and our efforts to secure a Series C production financing were unsuccessful.”
Since 2022, high inflation rates combined with high interest rates have rocked segments of the markets, especially startups at pre-revenue stages in capital-intensive sectors such as automotive. Indeed, pre-revenue electric vehicle company valuations plummeted and some startups shuttered.
“Damon is an anomaly that persevered,” posits Giraud.
But while “cost-cutting measures across all areas” helped Damon endure the last two years, “these necessary reductions have regrettably led to significant delays,” according to the CEO.
The newly public firm hopes that its listing on the Nasdaq can help it access additional capital to fund production.
“Listing on Nasdaq isn’t just a financial milestone for us; it’s a powerful affirmation of our mission to transform urban mobility and future-proof motorcycling,” Giraud stated recently.
Damon is trading on the Nasdaq as DMN.
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