Lecture: Innovative Transportation by Smart Tire Company

Introduction

• Presenters: Brian Yenny and Earl Cole from Los Angeles, California.
• Problem Statement: Traditional rubber tires fail frequently and produce significant waste.
  • Fail 7 times per second in the U.S.
  • Generate 50 billion pounds of toxic waste yearly.
• Historical Context: Rubber tires have not significantly evolved since 1847.

Innovation: The Smart Tire Company

• Product: High-performance, airless tires made from space-age materials.
  • Developed using proprietary technologies from NASA.
  • Material: Nitinol, a shape memory alloy (elastic like rubber, strong like titanium).
• Benefits:
  • Enhanced vehicle performance (on and off-road).
  • Safer transportation.
  • Environmentally friendly.
  • Manufactured in the USA.
• Ask: $500k for 2.5% equity.

Technology and Product Demonstration

• Spring Tire: Originally designed for Mars/Lunar missions.
• Nitinol Bicycle Tire: Commercial product, airless, never goes flat.
• Partnership with NASA: Licensed technology.
  • Exclusivity for bike tire and micro-mobility market.
  • Patent-pending for rubber integration with nitinol.

Business Strategy and Execution

• Funding: Raised $1.3M through crowdfunding.
• Market Focus: Micro-mobility segment.
• Infrastructure: 5,000 sq ft laboratory for prototype development and production.
• Future Goals: Expand into car tire market.
  • Strategy: Use patent for rubber integration to protect and license technology.

Financials and Cost

• Current Cost: $150-200 per tire.
• Pricing Strategy: Wheel sets for bicycles priced around $2500-3000.
• Future Pricing for Car Tires: Estimated $700-800 per tire.

Feedback from Sharks

• Concerns about execution and operations.
• Strategy misalignment: Recommend licensing to existing tire manufacturers instead of starting new manufacturing facilities.
• Overall Feedback: Concept is smart but current business model and execution plan are not convincing.

Conclusion

• Smart Tire Company believes in potential despite Shark feedback.
• Confident in customer demand and future fundraising to revolutionize tire industry.