The Future of Lycan: Of Risks and Rewards
Updated: Dec 5, 2022
It just takes one spark to start a fire.
This has been my thinking since I conceptualized Lycan in late 2019 and founded the company in 2020. It just took one idea and a train of thoughts to start the vision of what the company is today. Likewise, it also just takes one particular moment, one product, one turn of event, one marketing idea, one move, or just one person to change the future and history of Lycan forever -- whether for the good or the bad.
And these are the risks and rewards that this little startup company from Quezon City is working on everyday with an ultimate goal to succeed.
It just takes one spark to start a fire.
The highest risks that Lycan endured was at its beginning when I first officially introduced the concepts and ideas behind Lycan to the public in June 2021. Back then, we had nothing but designs, the first team members, experience in customizing motorcycles, and the will to create an impact.
We had no prior experience in designing and building a motorcycle from scratch, let alone an ambitious one that integrates artificial intelligence and internet-of-things (IoT) in motorcycles.
Lycan was frail and was on the verge of failing even before it started. But as with all newborns, "it takes an entire village to raise a child," as stated by an African proverb by painter George E. Miller. It would take a lot of people, time, and resources to get Lycan off the ground.
Lycan is a first-mover company in the Philippines, therefore it has to do everything from scratch even though off-the-shelf designs and parts are already available.
Another risk that the company has faced is its lack of experience in designing and developing a motorcycle from scratch, especially since this is a first in the Philippines where R&D, design, engineering, fabrication, and production is done. It's not as simple as slapping parts onto each other to build a safe and functional vehicle. And for us, it is 'rocket science' that we are set to master ourselves in.
Lycan is a first-mover company in the Philippines, therefore I chose to do most of the grunt work from scratch, mostly in-house, even though off-the-shelf designs and parts are already available in the market. The easier (and safer) route was to import motorcycles abroad and resell them here. But that's not how I work and how I see the company.
Taking this long and arduous path lets the company be independent so that even though worse comes to worst, it can develop and build a vehicle on its own without relying much on third-party expertise (production, though, is a different story). This is a risky move but a worthy investment in the long run as we acquire and retain the fundamental knowledge of motorcycle design and engineering. Basically, even if you put Lycan anywhere in the world under any circumstance, it can develop and build anything.
There are still a lot of factors that we consider high risk but the benefits and rewards are already starting to outweigh the risks.
Fortunately for the company, we had the opportunity to onboard more than 25 angel investors who have invested in Lycan at its very early stages despite the high risks. And for two years now, Lycan has endured and sustained itself to develop and work on its mission for the Philippine mobility industry, being able to put out its first official product to the market that is already bringing in revenues and cash flow. Lycan is no where near perfect and stable yet but it's getting there.
Since then, risks of failure have already been drastically reduced, but this does not mean that it is totally eliminated. There are still a lot of factors that we consider high risk that could make Lycan fail, but the benefits and rewards are already starting to outweigh the risks.
As Lycan becomes older, more and more people become aware of the company, its values, vision, and its mission. It has garnered tremendous support (and fair share of critics) from the public enough to be vouched for as legitimate and reputable startup company.
As a first-mover, we have a good advantage over any potential local competitors (all-Filipino company that might also develop a local motorcycle) that might enter the market and existing brands even if they have much greater financial backing and resources than Lycan.
In one such instance, there is this Filipino group that has developed something similar (but unrelated to Lycan) with the financial backing of vast foreign money. The product was good and the potentials of it for the Philippines were endless. Sadly, it ended up being bought by the financier completely and is now forever removed from the Philippines.
On the surface level, we have already taken 'dibs' in what we are doing. On a deeper level, there are certain [trade] secrets, opportunities, and discoveries that we have stumbled upon in our journey that makes Lycan a viable player.
Though still young, I'm making sure that we cross all bridges with pride and confidence that we can and will deliver on what we have been preaching on.
Even though Lycan is yet to release its primary products into the market, we have been preparing and developing for the future until we get that "spark" that ignites the entire flame of success. This long-term thinking is challenging on the short-term, but I see huge potentials for the long run. Do you?
The Philippines as a nation is a fairly young country in terms of technologies, hence the great resistance in what Lycan is achieving. In a practical sense, the local market isn't just what Lycan is aiming for. I also aim to have Lycan's products and technologies out there in the global market where there is less resistance to technology and innovation.
Given that costs are relatively low in the Philippines compared to other nations, this puts Lycan at a good position to export lower-cost products in the global market, an appealing investment and opportunity for offshore companies and distributors. And all we need for this to happen is to put out and demonstrate a product worthy of their business (and we're very close!).
Our very first angel investor subscribed to our stock at just PHP300 per share. A year later, that same stock is now valued at PHP6,700 apiece, and with the developments that we are continuously doing, especially since we are very close to putting more products into the market to generate positive cash flow, I am looking forward to it peaking at a higher valuation within 2023, especially once we close our Series A funding round and the more revenues we bring in.
This gives the company, its shareholders, its employees, and its customers very favorable benefits in terms of profitability, dividends & returns on investments, employment security, and lower prices, respectively.
the ultimate goal of Lycan is to succeed and be written down in history as a startup company who challenged the norm and started the spark that ignited an industrial revolution in the Philippines.
Even with limited and finite resources here at Lycan, we were able to open multiple potentials and opportunities not just for us, but also for other businesses and individuals to take advantage of what Lycan is offering -- a good avenue for us to strengthen our footprints with strategic partners with an objective to take a good share of the market.
Currently, as we have put our first product out in the market, our focus now is in marketing, operations, and production to deliver and sell more of the Lycan Atlas EV scooter locally (and hopefully through exports) through direct selling, third-party dealers, and distributors. With a good profit margin, we're seeing to breakeven the total historical capital of Lycan at just less than 500 units. Anything above the 500 mark will already be considered pure profit.
The future is not defined and no one can assume nor predict what would happen. I cannot and will not make claims that Lycan will succeed. But I believe that by looking back at our history, our vision, our plans, our capabilities and resiliency, and our current progress, we can take a calculated risk and forecast about where Lycan is headed.
What I am certain, to say the least, is that my vision for Lycan sees beyond the mountain ahead.
Though [the company is] still young, I'm making sure that we cross all bridges with pride and confidence that we can and will deliver on what we have been preaching on. There will be a lot of pivots and changes to the company's direction as required for its needs, circumstances, and benefits, but at the end of the day, the ultimate goal of Lycan is to succeed and be written down in history as a company who challenged the norm and started the spark that ignited an industrial revolution in the Philippines.
Would you be the wick that connects the spark to the fire?
Lycan Motorcycles Inc. is open to support through strategic partnerships, investments, and sponsorships that would help the company get to where it needs to be faster and stronger. If you'd like to take part in this, please email me at firstname.lastname@example.org so we can discuss about it. I look forward to talking with you soon!
John Andrew "Jaggy" Gangat is the founder and CEO of Lycan Motorcycles Inc., a Filipino motorcycle + technology startup company based in Quezon City, Philippines. For more information about the company, you may visit www.lycan.com.ph