Shark Tank US | Sharks Are Shocked At The Cost Of The Smart Tire Company

next up is a company hoping to change the transportation industry with an Innovative Space Age material make an entrance I like it hi sharks my name is Brian yenny I'm Earl Cole and we're from Los Angeles California sharks imagine an everyday product that failed seven times per second in the U.S alone and generates 50 billion pounds of toxic waste every year now imagine that same product was first padded way back in 1847 1840 1747. that's so old the light bulb didn't exist yet look we had put a man on the moon we've put robots on Mars but still this particular product hasn't changed much in over 100 years know what it is that's right folks the everyday rubber tire filled with air that still gets Flats and that's why we started [Music] the smart Tire Company the world's first high performance airless tires made from space-age materials using proprietary Technologies first invented NASA wow wow we use an advanced material called nitinol it's a shape memory alloy that's elastic like rubber yet strong like titanium wow shaped memory alloy radio technology or smart will change the way Vehicles perform on and off-road smart tires make Transportation safer they're better for the environment and they're made right here in the USA so sharks for five hundred thousand dollars in exchange for 2.5 Equity who wants to join us in reimagining the wheel and building the Next Great American Tire Company the smart Tire Company that's cool let me introduce what you're looking at here uh these Big Shiny Tire so this is actually a spring Tire this was originally designed for Missions to Mars for lunar Expeditions we got some Springs in front of you what you have right there is some space metal feel free to mash it up really rough with this material all right so this is going to be our actual first commercial product this is a pure nitinol bicycle tire that will absolutely positively never go flat wow so you don't actually own this technology you've developed a tire use with it right that's the idea yeah correct yeah we license this from NASA you know we talked about nitinol um there really are a handful of people on planet Earth that work in this material we have exclusivity with the bike tire and the micro Mobility Market which is our go to market and then there's a piece missing here which is the rubber integration and so we are patent pending on the integration of nitinol with rubber to produce any tire on Earth you're going to need that rubber so I need that those that we're seeing there in the raw form yes but they're going to have to be covered with rubber exactly okay do you have exclusivity for the tire use that's a good question we actually have a space act agreement with NASA so they are helping us commercialize this but that doesn't answer my question so where are you now right you had access to this technology now you have to turn it into a business right yeah tell us about that business we have raised 1.3 million dollars so far in crowdfunding crowdfunding equity crowdfunding and that was with very little effort we were kind of testing the waters that's not a positive guys I'm not a fan of equity crowdfunding but go ahead yeah sure I think maybe just to set up the contacts because you know we haven't even said why the bike tire right so the the segment that was really interesting to us was micro Mobility for a few reasons one is the fastest growing segment yeah I don't need to hear total addressable Market type stuff sure right we need to know about your company what it's doing right because you you raise this money you've got the opportunity to use this technology but you have to execute yeah great to Envision okay I think it'll help answer how you're going to execute if we understand who you are and what's your background okay so I've been a software engineer for 23 years I've worked for Education companies gaming worked for a uh was employee number one at a home staging company I'm a Serial entrepreneur of a just like Brian you know you're not an astronaut all right I've been exposed so I'll have a big business strategy and marketing background worked at some of the top media companies in the world and all of that is doing a culmination to where I am now to where we're able to handle a big task like this you know the reason why we got to space that agreement because we presented the best argument and the best strategy to NASA to where they trusted us to give us that space side agreement you guys keep on going back to that okay we know that right at some point we want to invest in a business yeah right we opened up you 5 000 square foot laboratory to get things started so that is the infrastructure for the tire business so we're buying equipment we're hiring people to do what to do work to build prototypes to make the bicycle tires yeah our first product is the bicycle time do you get to go to the car tire in your deal so how we get to the to the car tire a couple of things there's a reason we're very focused on the rubber integration now yes there's some big tire company companies out there they have a lot of resources absolutely competition Fagan can't put rubber on a tire you could corner it they'd have to pay you a royalty to build their line of Big Brand Tires that the strategy essentially yeah that's that's our IEP defense versus big and small so we're patent pending on that okay how much are they going to cost for me we're still optimizing the product the final product like we're still early stage we're pre-revenue but we're optimizing everything are they going to be five times the price of a regular Tire not five times let's let's focus on one thing right yeah what does it cost you to make the tire I'm going to start here yeah absolutely the tire the night low material cost about 150 a pound so we don't know what that means what does that means to make one tire you need to be under a pound you're going to have a heavy Tire listen to me yes I don't I don't know NASA I don't know I'm I'm lost at that language right yes give me a simplistic answer yeah how much money does it cost to make that thing right there that thing right there cost us around 150 200.50 right so we're gonna sell Wheel sets to begin with because it's a premium product integrated with you better believe it's a premium product and how much you're going to sell the wheel set will be around twenty five hundred three three thousand dollars for the wheel set oh whoa I can buy a bicycle for that you didn't want to tell us right now the goal is to eventually get the cars if you're selling these a set for a bike at twenty five hundred three thousand when you get the cars what are we selling for a million are you talking about 15 to 20 grand for a set 10 grand how much is a sale how do you get the cards we'll be selling just the tire so if you imagine this tire right here this would cost around seven eight hundred dollars for the the tire which matches up with like a sport you know high-end Tire we're just not there yet you know listen guys I think the con concept is really smart tires are a pain in the ass I mean nobody wants to have to fill them with air nobody wants to come back and find the tires flat but it's just right now you're too early for me regretfully out look you guys had this NASA opportunity you grabbed it yeah right can't blame any entrepreneur for wanting that now you have this big Vision that you put up on this Equity crowdfunding site and you sold the big Vision great now you figure you get on the Shark Tank and you're trying to sell the shiny object big Vision you have done nothing to prove to us that you can execute on that big Vision not one operations comment at all not one execution comment at all so the only comment left is I'm out you know guys I don't I don't agree on your strategy I agree the technology works it's intriguing I but the world does not need another entire manufacturing Distribution Company they already exist it's a very mature market and so at the end of the day the strategy should be that if you've locked up these rides why don't you go to a giant tire manufacturer that already has all the distribution and Manufacturing facilities and license it to them why why are you trying to reinvent the wheel and I really mean reinvent the Wheel by starting manufacturing facilities I I mean I can't even comprehend how expensive and how long that would take I'm so frustrated listening to this I want to no I shouldn't say that anger anger management anger management I'm out look as a as a car Enthusiast right you were talking about going into the world of cars I got interested for a second because I wanted to know oh man maybe there's a dope connection here it's his point well attaching yourself to a brand that exists that already has success and giving that Brandon of the tier I just feel like it's a smarter route you didn't do a good job of presenting the business within your business you gave me some jargon that I didn't understand I was waiting for the pieces to the puzzle that I could understand and as an investor I don't ever want to not know I didn't know what was going on it's way too early it's way too expensive so I'm gonna have to say I'm out the bottom line is that I think you've heard five different ways it was very confusing and it's a shame so I'll join my pals here and say I'm out good luck guys okay thank you so much appreciate it thank you bye-bye good luck so I think the Sharks got a little stuck on some of the initial uh issues they had and I think if they understood the full business they would see a lot more here we have a a waiting list of over 6 000 customers waiting to buy these bike tires and we couldn't even get that out to tell them it's like there's so much we wanted to say but you know it's fine you know we know we're still going to raise a lot of money and change the world

Channel: Sony Pictures Television

Views: 2,627,784

Keywords: Sony, Sony Pictures Television, Shark Tank, Shark Tank US, Shark Tank USA, Shark Tank America, American Shark Tank, Shark Tank Pitches, Shark Tank bad pitches, Shark Tank Best Pitches, Shark Tank Covid, Shark Tank Season 12, Mark, Blake Mycoskie, Kevin, Lori, Daymond, mark shark tank, kevin shark tank, lori shark tank, daymond shark tank, mr wonderful

Id: C0IoF9LH7Ao

Length: 10min 52sec (652 seconds)

Published: Mon Apr 10 2023