Overview• Drive System

• Prototype

• Market

• Environmental Analysis

• Operations

• Financing

• Exit Strategy

Brief

Continuously Variable Transmission or CVT: Is a transmission in which the ratio of the

rotational speeds of two shafts, as the input shaft and output shaft, can be varied continuously within a given range, providing an infinite number of possible ratios.

Advantages over conventional transmissions Engine performs at a maximum efficiency

Potential to create a biomechanically favorable bicycle

Smooth shifting

The ProblemCurrent limitations

Conventional bicycles have pre-selected gear ratiosThe rider is prevented from performing at optimal efficiency

Conventional derailers are prone to the elementsChain slippingDamage and wear caused by dirt and debrisCostly and time consuming repairs

Symptum’s SolutionA frictional v-belt drive system with a variable diameter sheave for gear ratio control.

RationalLow production costsCommonly used designMechanical simplicityModifying previous

success

The Next StepPrototype Testing

Slip conditions Force profile Range selection for

gear ratiosCompile cycling data

Shifter design Actuator selection

Frame compatibility Geometrical design Structural integrity

Pedal attachment

Variable Sheave

sheave

Output sprocket

Gear (a)

shifter bar motion

Gearbox first prototype design

Testing set up

Friction rollers

Force sensor

Unique opportunityOpportunity

Rider is given the unique ability to control input to output “gear” ratio over a continuously variable range

Potential to optimize muscle efficiencyThe proposed alternative CVT transmission

will allow us to capture a fraction of a multi billion dollar bicycle market in the US alone

Risk AssessmentDesign might not meet expectations

Final prototype will be tested by competitive bikers and bicycle enthusiastsInitial scores will be a comparison to their bicycle of choice

Market Acceptance of the internal gearboxBike shows, shopping mall, and public event displaysAttempt to gather consumer response through surveys

Provide market acceptability and consumer reaction

Team President Mitch Angus: Avid sponsored competitive gravity

mountain biker Competing since ‘96: Professional Status 2001-2005 & 2008 The National Off-Road Bike Association, Oregon Bike

Racing Association, Canadian Cup, Washington, Idaho, Montana Mountain Bike Series

CTO: Vladimir 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

Market 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 increasing yet stable and will continue to thrive with popularity in the sport starting to increase.

6 Billion Dollar Industry in the US.

Bike Industry is growing at a rate of 6.4%.

Headquarters will be located in Portland, Oregon.

Target Market Male and Female

Age: 10-55

Self-motivated

2 Segments Recreational Performance

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

Discretionary income

Segments

Recreational Quality of product Superior customer

service

Performance Recognize a need

for change Highlight

technologyCVT

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

Studies underway to define target market

Multiple design schemes in testing phase

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

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.

IncomeRevenue:

OnlineBicycle 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.

OperationsLocal 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

Once a distributor purchases a bike Symptum will send them the frame and parts to be assemble on the bike and then sell the bike to the end user

Life Cycle

Benchmarks and Goals Year 1

First 3 monthsDesign gearbox and

framesAcquire patents &

trademarks Second 3 months

Market testing Second 6 months

begin acquiring distributors

Year 2 Official introduction in

to market 3,500 bikes sold,

$2,000,000 sales

Year 5 $15,000,000 in

sales .25% of U.S. market

International Sales & 1% of market

Buy out investors

Projected Prototype Funding

TASK 1 (in progress)

Facilities $500

Salaries $7000

Consulting $250

Direct Costs

Parts $250

Labor $500

TOTAL $8,500

TASK 2

Facilities $500

Salaries $6000

Consulting $500

Direct Costs

Parts $2000

Labor $2000

TOTAL $11,000

Projected Prototype Funding Cont.

TASK 3

Facilities$500

Salaries $6500

Consulting $1000

Direct Costs

Parts $4000

Labor $6000

TOTAL $18,000

TASK 4

Facilities $1000

Salaries $7000

Consulting $1000

Direct Costs

Parts $1000

Labor $1000

Testing $3000

TOTAL $14,000

Financing

Required Capital

Year 1 October- $60,000 Founders, Friends, FamilyInfusions

December-MarchTotal $2,000,000

Willing to give up 32% of equity

Projections

Year 1 Year 2 Year 3 Year 4 Year 5

Net Income

$2,031,211

$4,994,859 $3,285,043 $4,555,713 $5,494,140

Revenue $8,663,802

$17,327,604

$17,327,604

$22,525,885 $27,031,062

Cash $2,195,005

$6,571,327 $6,830,685 $10,569,961 $15,368,478

Net Profit Margin: 29%

Breakeven

Exit Strategy

Buy out investor at 6 times their original investmentInvestor: $ year 7

Year 10 or $50 million: Reevaluate

Single founder sell Shares will be purchased from remaining founders

Continue operationAcquisitionAll founders step down

Retain shares; board members

Questions

Consultants Dana Engineering Machine Shop

Kirk and Miles

Instructor Dr. Howard Davis  

Ride This Bike Shop Owner Victor Sandrin

EVS Marketing Manager Brian Myrick

Downhill Northwest Bicycle Shop and Training Camp Owner Simon Lawton

Tesoro Chief Chemical Engineer

John Pope

Pivot Cycles International Sales Manager Rob Aguero

Marin Bikes Director of Operations Michael Hersey

Invicta Law Group Attorney at Law

Steve Edmiston

 AterWaynne Partner

Ernest Bootsma 

Waddell & Reed Financial Advisor

Johnathan Petrich

Serial Entrepreneur/Venture Capitalist/Niitek Chief Technical Officer Daniel Lulich 

Klarquist Sparkman Partner, Patent Agent

Susan Alpert Siegel, Ph.D.

Seven Cycles Director of Recruiting

Denise Caruso

Fisher Bikes President Fisher Bicycle

Gary Fisher