In 2019, Damon Motorcycles was turning heads. The Canadian startup promised nothing short of a revolution: 200-horsepower electric superbikes capable of 300 kilometers of range, packed with futuristic technology, and ready to make the Ducati Panigale and Kawasaki Ninja look old-fashioned. Six years later, the reality is quite different: Damon has only 13 employees, is drowning in debt, and mired in lawsuits.
It all started with a seductive vision: to create the “Tesla on two wheelsDamon promised two iconic models—the HyperSport and the HyperFighter—with a mind-blowing 200 hp, AI-powered safety systems (blind spot warning, near-accident detection), and a futuristic design that would be the stuff of international motor shows.
Pre-orders were pouring in, investors were following, and the trade media were raving. Damon claimed to have earned more than $90 million in bookings, convincing hundreds of customers to bet on this electric promise.
The first production delays appeared quickly, without the company really explaining why. Then doubts grew: the factory announced by Damon seemed unobtainable, deliveries planned for 2021 were postponed, and the prototypes remained invisible outside of trade fairs.
In 2024, the situation changed: the founder and CEO Jay Giraud was ousted amid an internal crisis. He is now preparing a lawsuit against his own company. Damon was sued for unpaid rent Vancouver (over $370,000).
The collapse of Damon Motorcycles illustrates a well-known pattern in tech and electromobility
And most importantly, controversial investor Andrew DeFrancesco (already sanctioned by the US SEC) is demanding more than $3,2 million in promised but undelivered shares. Ironically, DeFrancesco had injected tens of millions through his House of Lithium fund, going so far as to sponsor an IndyCar car in Damon's name.
The result is brutal: the company has gone from more than 100 employees at 13 (including only two subcontractors). Motorcycle reservations are now worth as much as a lottery ticket.
Faced with industrial failure, Damon is now attempting a pivot: becoming a provider of artificial intelligence-based security software. But this repositioning looks more like a desperate maneuver than a real strategy.
The crux of the matter remains: no HyperSport or HyperFighter has been delivered, and customers who have put down deposits are left wondering. Will they ever see their money again... or their bike? Nothing could be less certain.
The collapse of Damon Motorcycles illustrates a well-known pattern in tech and electromobility : flamboyant promises to attract investors and the media; underestimation of industrial challenges (production, approval, supply chain); financial slippage that ends up in court.
The start-up had the ambition, the image and even attractive prototypes... but not the solidity to move from dream to reality.
Today, Damon is now just a warning to pre-order buyers and a cruel reminder: in the motorcycle As elsewhere, industrialization is often more complex than start-up pitches.
