Vanguard Moto Inc. is a premium motorcycle design and manufacturing company looking to disrupt the premium motorcycle market with a contemporary design and a modular assembly process. The Company is based in the Brooklyn Navy Yard where its motorcycles are designed and assembled. We are pleased to welcome Francois-Xavier Terny and Edward Jacobs, the two founders of Vanguard Moto Inc
Company Overview:
Vanguard Moto Inc. (“Vanguard” or the ” Company”) is a premium motorcycle design and manufacturing company looking to disrupt the premium motorcycle market with a contemporary design and a modular assembly process.
Vanguard was born from the meeting of Edward Jacobs, a recognized motorcycle designer and engineer, and Francois-Xavier Terny, an entrepreneur and former consultant, expert in supply chain and cost optimization. Francois-Xavier and Edward first discussed the project in 2007 and created Vanguard in 2013. The concept and the prototype have been financed through founders’ equity and seed financiers (including several Bain&Co connections).
2016 is a pivotal year for Vanguard. Its first running prototype was unveiled to followers and industry experts on June 30th; The Company has filed a dozen utility and design patents related to the motorcycle; The team is preparing to unveil the motorcycle and the brand to the public at the New York Motorcycle Show on December 9th.
Beyond its design, Vanguard key features are:
– Attractive target market: The premium motorcycle segment is a $3 billion market worldwide characterized by growth, high margin and resilience. The market is not properly addressed by incumbents who essentially soup-up their mass models and sell them at premium prices (between $25 and $40k). At $30k, Vanguard’s base model will be a strong value proposition and the Company expects to sell 3,000 bikes a year within 6 years.
– Early buy-in from the top suppliers in the industry (Ohlins, Brembo, S&S, Bosch, Pirelli…) who provide Vanguard with OEM pricing and terms.
– Low breakeven point at 480 bikes a year thanks to OEM prices for critical components, the modularity of the motorcycle, and a streamlined approach to bike assembly, which does not require specialized workforce.
– Warm welcome from dealers who see in the brand access to the desired premium clientele and a US motorcycle brand made in NYC.
The current capital raise will finance the development of the prototype that will lead to the design freeze, followed by the pre-series and the production phases with a target to sell our first 100 bikes to market in 2018. The Company and production line are based in the Brooklyn Navy Yard, where Vanguard intends to create more than 100 direct jobs in the next five years.
Read Peer Insights Report Q&A interview with Francois-Xavier Terny
Management Team:
Francois-Xavier Terny
Co-Founder & CEO
Francois-Xavier Terny began his professional career in 1991 with Bain & Company, then created his own consulting firm, Masaï, in 1996 as a firm specializing in industrial cost optimization. In 2006, having reached $25m with 100 professionals in 12 offices in Europe, US, Japan, China and India, he accepted a competitor’s offer. Since then, he has been a Board advisor, General Manager and Investor to various companies, including Confederate Motorcycles where he was a member of the Board until 2010. He worked in Private Equity, managing a newly established family office in NYC before co-founding FXE Industries mid-2013
Edward Jacobs
Co-Founder and Head of Design and Engineering
Born in Hartford, Conn., Edward Jacobs studied architecture and industrial design at Pratt Institute in New York City before interning at design studios in Austria. Upon completion of his post graduate studies, he spent two years with Oasis designing for architectural firms. A student of Eastern philosophy and martial arts, he spent one year in Kerala, along the southwest coast of India. He then joined Confederate Motorcycles in 2005 as Director of Design, designing and engineering some of the most acclaimed motorcycles. He quit in 2011 to open up his own design studio in NYC, before co-founding FXE Industries mid-2013
Investment Opportunity:
Vanguard Moto Inc. has invested to date approximately $1.6 million of founders and seed investors’ money. The company is looking to raise $10.7 million in two tranches: (i) tranche 1 of $6.7 million for the development and pre-production phases to be drawn in January 2017 ; (ii) tranche 2 of $4.0 million for the production phase to be drawn post design freeze (expected end of 2017). The Series A will take the form of preferred equity serving an 8% coupon. In terms of valuation, the $10.7 million will buy 45% of Vanguard Moto Inc. capital which corresponds to a pre-money valuation of the Company of $12.6 million.
Feedback from industry professionals:
” I am the General Manager and Owner of Ducati Triumph New York. Our dealership has had a relationship with Vanguard since the Company’s founding. We have seen the motorcycle designs and are confident that the new brand has great potential for success in the market. Mototainment looks forward to becoming one of the first dealers to carry the brand. Not only is the brand positioning itself in the growing market for premium motorcycles, but Vanguard offers an attractive unique design and a “Made in New York” message. We have a strong inclination that Vanguard’s offering will resonate well with our customers.”
Steve Radt, Owner, Ducati Triumph Dealership (New York)
“My name is Jared Zaugg, and I co-founded the Legend of the Motorcycle International Concours d’Elegance. I have followed from the very beginning the creation of the concept, philosophy, design, engineering of the Vanguard motorcycles. What they are producing is truly innovative and I believe the company has the potential to develop a strong foothold in the premium market place. Vanguard has my full support as they launch the Company, and I believe they will be hugely successful as they are filling a gap in the market where there is a strong demand from discerning riders.”
Jared Zaugg, Legend of the Motorcycle
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