Tires are typically made of rubber because it is more stable on a variety of terrains than most materials. However, they are not as strong and produce 50 billion pounds of toxic waste each year. Earl Cole and Brian Yennie founded SMART Tire, which makes airless memory alloy tires. The founders appeared on Shark Tank but did not make a deal. Regardless, SMART Tire will be worth $54 million in 2024.
Founder
Earl Cole is from Kansas City, and while little is known about his background, some may recognize him from the reality television series Survivor: Fiji.
After winning the contest and receiving $1 million in pay, he became a television host and a frequent guest on various talk shows before starting his first company, a creative management firm that provided international military travel for celebrities.
Earl’s partner, Brian Yennie, is a software engineer who attended Dartmouth and Carleton Colleges. Yennie has worked at companies such as IDEX, Fanstreme, Showroom, and FunGoPlay.
establish a company
Decades ago, NASA invented shape memory alloy tires for its Mars missions. Yennie and Cole wanted to apply the technology to regular vehicles.
The two entrepreneurs licensed the technology from NASA and founded SMART (Shape Memory Alloy Radial Technology) Tire Co. The two businessmen developed and patented airless tires for cars, trucks and even bicycles.
The startup was founded in 2020 and raised $1.3 million through equity crowdfunding. Despite raising over a million dollars, it was not enough to build a manufacturing lab and hire employees.
Shark Tank Appearance
Earl and Brian appeared on Season 13 of Shark Tank when the company was still in its early stages, looking to acquire a 2.5% stake for $500,000. A $40 million valuation is not typical for Shark Tank.
The founders had a great opening presentation, clearly explaining the key benefits of their product. The Sharks peppered them with questions, but they didn’t have any satisfying answers.
The company wasn’t profitable yet and was still figuring out how to mass produce the product. Cuban was put off when he heard their price. The Sharks weren’t interested in taking a chance, so no one made an offer.
After Shark Tank
Although things did not go as planned, the founders were eager to continue the business. They worked on a new tire design and got a patent approved.
SMART Tires has attracted the attention of prominent automakers and has struck deals with Kia and Hyundai. SMART Tires has also launched a Wefunder campaign that has raised over $1,090,334 from 1,563 investors to date.
The startup has yet to release a product and needs to raise more money to stay in business. They have 5,000 customers waiting for their METL bicycle wheels, but need to manufacture them. This will be an expensive investment, hopefully the founders will listen to Kevin O’Leary and license their technology. According to the latest round of funding, SMART Tire is valued at $54 million.
Categories: Shark Tank
Source: svlsf.edu.vn