Overview

• Drive System

• Prototype

• Market

• Environmental Analysis

• Operations

• Financing

• Exit Strategy

Team President: Mitchell A. Angus: Avid sponsored competitive gravity

mountain biker Competing since ‘96: Professional Status 2001-2005 & 2008-

2009

CTO: Vladimir V. Borisov: Bioengineering major with a background in mechanical engineering. Summer internship under supervision of Dr. Davis Previous Small Business Owner

CMO: Michael J. Allan: General Studies major with Entrepreneurship minor. Marketing team member for “ Under the Big Tent Event” at

WSU 6 years customer service and management experience

Symptum CyclesMichael Allan, Mitchell Angus & Vladimir Borisov

The Problem

Current limitations Conventional bicycles have pre-selected gear ratios

The rider is prevented from performing at optimal efficiency

Conventional derailleur’s are prone to the elements Chain jumping or missing Damage and wear caused by dirt and debris Costly and time consuming repairs

Symptum’s Solution

A frictional v-belt drive system with a variable diameter sheave for gear ratio control.

Rational Low production costs Commonly used design Mechanical simplicity Modifying previous

success

Mission Statement

Symptum will set the bar for standardizing specialty mountain bikes.

Reinvent how bicycle gear systems are perceived and how they are designed by the industry.

Set out to introduce a simple solution to the current standard of bikes.

Change the performance and attitudes of all riders

Concept

Continuously Variable Transmission or CVT: No gears necessary Ability to offer an infinite amount of ratios Creates a more balanced bike

Advantages over conventional transmissions Engine performs at a maximum efficiency

Potential to create a biomechanically favorable bicycle Potential to optimize muscle efficiency

Smooth shifting

Conventional Gear System

Requires constant maintenance.

Exposed to the elements. Over time major wear will

occur. Possibility of potentially

damaging beyond repair. Gear selection is severely

reduced.

Symptum Internal Drive System

Requires little to no maintenance.

Not exposed to the elements.

Will be similar in weight.

Shifts more reliably all of the time.

Unique opportunity

Opportunity Rider is given the unique ability to control input to

output “gear” ratio over a continuously variable range

The proposed alternative CVT transmission will allow us to capture a fraction of a multi-billion dollar bicycle market in the U.S. alone

Market

6 Billion Dollar Industry in the US.

Bike Industry is growing at a rate of 6.4%.

Portland regularly ranks at the top of Bicycling Magazine’s list of the best cycling cities.

Portland’s bicycle-related industry was worth $60 million in 2007.

Nation’s highest % of workers who commute by bike, about 3.5%.

The market is still expanding and will continue to thrive with popularity in the sport exploding

Target Market

Male and Female Age: 6-60 Self-motivated Discretionary income

2 Segments Recreational Performance

Aggressive, active and entertaining lifestyle while seeking high quality of perfection and reliability

Competition

The bicycle industry is divided into 4 different distribution channels.

I. Specialty 49% II. Full Line 8% III. Other 6% IV. Mass Merchants 37%

Value Having a standardized internal drive system will set us

apart from the competition.

Marketing & Sales “Making performance

and perfection a standard”

“A sign or indication”

An abnormality to the industry

Market to segments independently

Recreation/Performance

“Total Customization”

Website

Company vehicle to attend all events

Promotion through; key chains, bottle openers, energy drinks, stickers, and decals

Sponsor cycling events in partnership with other outlets

Extend reach by sponsoring conventions and concerts

Studies underway to define target market

Danielle H.

Mitch A.

Income

Revenue: Online Bicycle Retailer

Purchase bikes at a discount or wholesale

The revenue comes directly from the profits made from selling complete bicycles online or to distributors for a wholesale pricing.

Operations

Frame & drive system manufacturer

Local bike shops will be utilized to sell our products Symptum has no physical retail stores.

Bikes designed at Symptum Cycles Sent to manufacturing plant for assembly Sent back to Symptum Cycles once completed

Parts to be assembled onto frames will be sent to Symptum

Distributor purchases a bike Symptum will send them the frame and parts to be assembled on

the bike Sell the bike to the end user

Benchmarks and Goals

Year 1 First 3 months

Design gearbox and frames Acquire patents &

trademarks Second 3 months

Market testing Second 6 months

begin acquiring distributors

Year 2 Official introduction in to

market 5,000 bikes sold,

$2,000,000 sales

Year 5 $8,000,000 in sales International Sales & 1%

of market Buy out investors

Risks & Rewards

Valuation: Year five is $8,572,100.17 Beta: 2.1 Market risk premium: 11.60% Long-term growth rate: 7%

Terminal value: $12,319,705.11

NPV: $8,572,100.17

ProjectionsYear 1 Year 2 Year 3 Year 4 Year 5

Net Income

$(328,451) $1,449,910 $1,899,508 $2,484,760 $3,013,466

Revenue $1,169,028 $7,367,104 $9,778,122 $12,711,558 $15,253,870

Cash $760,186 $1,312,734 $2,988,514 $5,013,003 $7,648,812

Net Profit Margin: 21%

Breakeven

Financing

Required Capital

Year 1 October: $100,000 Founders, Friends, Family Infusions

December-March: $500,000 Total: $2.1 million

Willing to give up 39% of equity

Exit Strategy

Buy out investor at 6 times their original investment Sell designs to other

manufacturers Payout for investors

Investor: $ year 6 Reevaluate

Continue operation

Conclusion

Conclusion

Danielle H.

Dan Castles, CEO of Telestream

Kirk and Miles, Dana Engineering Machine Shop

Dr. Howard Davis, Instructor

Victor Sandrin, Owner of Ride This Bike Shop

Brian Myrick, EVS Marketing Manager

Simon Lawton, Owner of Downhill Northwest Bicycle Shop and Training Camp

Gary Fisher, President of Fisher Bicycle Fisher Bikes

John Pope, Tesoro Chief Chemical Engineer

Rob Aguero, Pivot Cycles International Sales Manager

Michael Hersey, Marin Bikes Director of Operations

Steve Edmiston, Invicta Law Group Attorney at Law

Daniel Lulich, Niitek CTO/Serial Entrepreneur

Denise Caruso, Director of Recruiting at Seven Cycles

Mike Danielson, Angel Investor. Funded shirts, CD’s and business cards.

Consultants