The SMART Tire Company
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 7, 2022
Asking For:
$500,000 for 2,50%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The SMART Tire Company offers high-performance, airless tires made of Nitinol, a shape memory alloy, to revolutionize vehicle transportation.
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Background Story
Brian Yennie and Earl Cole, both based in the bustling metropolis of Los Angeles, California, identified the enduring complications arising from traditional rubber tires and their substantial environmental repercussions. Drawing upon their extensive backgrounds in software engineering and astute business acumen, the duo initiated a pioneering partnership with NASA, culminating in the acquisition of a pivotal Space Act agreement. This strategic collaboration granted them exclusive rights to incorporate the groundbreaking Nitinol technology into their tire innovation.
Leveraging their complementary expertise and strategic foresight, they established The SMART Tire Company, driven by a steadfast commitment to tackling the critical challenges prevalent within the transportation industry. Their mission entailed revolutionizing the fundamental principles of tire design and functionality, with a profound emphasis on sustainability and high-performance solutions.
With a vision to transcend the limitations posed by traditional rubber tires, their venture embodied an amalgamation of technical prowess, entrepreneurial acumen, and a deep-rooted dedication to environmental stewardship. The journey of Brian Yennie and Earl Cole exemplifies a testament to the power of ingenuity and collaboration in the pursuit of transformative solutions that hold the potential to redefine the future of transportation and contribute to a more sustainable, eco-conscious paradigm.
The Product
The innovative products from The SMART Tire Company represent a breakthrough in tire technology, as their airless tires integrate Nitinol, a shape memory alloy recognized for its exceptional elasticity and robustness, leading to an amplified performance in diverse terrains, be it on or off-road.
With a primary focus on the burgeoning micro-mobility market, their initial offering comprises the introduction of Nitinol bicycle tires, showcasing unparalleled endurance and dependability. Although the tires are presently undergoing refinement and optimization, the company envisions a future line of wheel sets that seamlessly incorporate carbon fiber, positioning themselves as a premium option for consumers.
With an anticipated price range of approximately $2,500 to $3,000, these advanced wheel sets aim to cater to the discerning clientele seeking top-tier performance and reliability for their transportation needs. The SMART Tire Company’s commitment to pioneering tire technology underscores their dedication to providing innovative, sustainable, and high-performance solutions that redefine the conventional notions of tire functionality and endurance.
How It Went
The company’s position before Shark Tank
The early performance of The SMART Tire Company is indicative of a promising trajectory, as evidenced by their successful fundraising efforts, amassing a substantial $1.3 million through equity crowdfunding. A notable indicator of their market appeal is the considerable interest generated within the micro-mobility sector, exemplified by an extensive waiting list comprising over 6,000 prospective customers eagerly anticipating the acquisition of their pioneering bicycle tires.
Displaying a commitment to research and development, the company has dedicated a significant portion of resources, establishing a 5,000-square-foot state-of-the-art laboratory, serving as a hub for tire development and prototyping activities. This substantial investment in infrastructure and skilled personnel underscores their dedication to technological advancement and product refinement.
Building upon their strategic collaboration with NASA, The SMART Tire Company enjoys the distinct advantage of a Space Act agreement, affirming their unique access to cutting-edge Nitinol technology and solidifying their position as trailblazers within the micro-mobility market. Leveraging their exclusive Nitinol-rubber integration, the company aspires to carve a competitive niche within the tire manufacturing industry, aiming to challenge the established players and introduce a paradigm shift in the way consumers perceive and prioritize tire performance and sustainability.
The Negotiations:
During the negotiation, the Sharks expressed keen interest in the innovative technology presented by The SMART Tire Company. However, concerns were raised regarding the company’s current stage and pricing strategy. The entrepreneurs faced scrutiny over the complexities associated with the cost of production, particularly concerning the utilization of Nitinol technology and its associated expenses. Questions arose about the viability of mass production and the potential market response to the premium pricing of the proposed wheel sets.
While the Sharks acknowledged the transformative potential of the product, they remained hesitant due to the perceived risks associated with the company’s early stage and the uncertainties surrounding the scalability of their business model. The entrepreneurs, in their bid to secure investment, emphasized their robust vision for the future, highlighting their comprehensive plan for expanding into the automotive sector.
However, the Sharks expressed reservations, advocating for a more streamlined approach to market penetration, urging the entrepreneurs to consider a strategic partnership with established tire manufacturers to expedite the commercialization process. Despite the entrepreneurs’ efforts to convey their extensive customer interest and the ongoing optimization of their product, the Sharks collectively opted out of the opportunity, citing concerns about the company’s readiness and their ability to execute on their ambitious vision within the fiercely competitive tire industry.
