"You've done nothing" - When Mark Cuban criticized Smart Tire Company's entrepreneurs on Shark Tank

Smart Tire Company's Shark Tank season 13 appearance ended without investment when Brian Yennie and Earl Cole failed to secure their $500,000 request for 2.5% equity. The founders presented their NASA-licensed nitinol tire technology, their $1.3 million previous funding, and their exclusive rights to commercialize Mars rover tire materials.

As per Mark Cuban, the entrepreneurs focussed heavily on material science and NASA collaboration but lacked operational details during the presentation. He addressed this issue and said:

"You figure get on 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."

The pitch valued the pre-revenue company at $20 million based on their technology and NASA partnership.

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Mark Cuban pointed out execution gaps in Smart Tire Company's pitch on Shark Tank season 13

Smart Tire Company came prepared with substantial technology credentials. Their agreement with NASA provided exclusive rights to commercialize technology from Mars rover missions. The founders demonstrated their patent-pending rubber integration system, aiming to transform both bicycle and automotive markets through their innovative materials.

Their 5,000-square-foot research facility served as the central hub for material development and testing. Before their Shark Tank appearance, the company had secured $1.3 million through equity crowdfunding campaigns, showing significant market interest in their concept.

Yennie and Cole announced bicycle tire sets would cost between $2,500 and $3,500, while car tires would sell for $700 to $800 each. These figures exceeded standard market rates significantly, causing immediate concern among all five Sharks.

The pricing strategy raised questions about market viability. Kevin O'Leary pointed out challenges in consumer adoption at such high price points. Barbara Corcoran expressed confusion about the overall business model, leading to broader discussions about manufacturing costs and profit margins.

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Cuban's criticism

The pricing discussion led to more scrutiny of Smart Tire Company's business strategy. Cuban examined their operational readiness, focusing on the gap between their technological capability and practical implementation. When asked about manufacturing processes, distribution channels, and scalability plans, the founders struggled to provide concrete details.

The equity crowdfunding approach became a point of contention. Cuban expressed skepticism about their funding method, suggesting it might create complications for future investors. The company's pre-revenue status combined with its high valuation of $20 million raised additional red flags.

Kevin Hart and Kevin O'Leary aligned with Cuban's assessment. Both Sharks emphasized the need for a clear path to market beyond the initial technology license. Lori Greiner concluded that the company needed more development time before seeking major investment.

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Company's current status

As per Shark Tank Blog, Smart Tire Company adapted their strategy following the appearance. They adjusted their bicycle tire pricing to $150 per unit for their 2024 market entry. This shift showed responsiveness to market feedback and affordability concerns.

Their Kickstarter campaign in the fall of 2023 demonstrated market interest, securing $182,000 within 15 minutes of launch. The METL bike wheels generated substantial consumer attention, building a waiting list exceeding 10,000 potential customers.

The company maintained momentum through additional funding rounds. Their WeFunder campaign approached $1 million in support, indicating continued investor confidence. They sustained their NASA partnership, working toward applications in future lunar missions while developing their consumer product line.

Brian Yennie shared in recent communications that despite leaving without a deal, the Shark Tank exposure proved valuable. The company maintains occasional contact with the Sharks, receiving informal guidance as they move toward their product launch.

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Fans can watch Shark Tank season 16 on the ABC network.