This week Octane is featuring SiC Technologies, Inc. for the LaunchPad Alumni Spotlight. SiC Technologies was a 2018 Technology Innovation Forum LaunchPad Finalist. SiC Technologies develops patent pending hybrid composite materials used for braking and other aerospace applications.
SiC Technologies started as a result of a 2009 regulation, 49 CFR Part 571, which was introduced by the National Highway Safety Traffic Administration (NHTSA). It states, “This document amends the Federal motor vehicle safety standard on air brake systems to improve the stopping distance performance of truck tractors. The rule requires the vast majority of new heavy truck tractors to achieve a 30 percent reduction in stopping distance compared to currently required levels”.
As this push for the safety standard has taken precedence over the years and commercial vehicles begin to adopt and make changes, little improvement on the technology available has been made. Current commercial vehicles meeting this standard resort to using heavy steel air disc brakes, costing them freight losses up to $150,000 a year in revenue per truck.
SiC Technologies’ lightweight hybrid composite brake system helps commercial vehicles gain an average of $186,000 back in freight revenue and increase the lifetime value proposition to $1.9 million per truck (Freight revenue + Fuel Savings + Maintenance savings).
SiC Technologies has achieved great success in the past three months. They just closed 2 defense (DoD) contracts with the Army for $267,000 and are on trajectory for an additional $2.1 million in 6-7 months. They are also waiting to hear back on 4 additional Defense contracts. SiC Brakes still retains a LOI for $3.3 million with a tier 1 OEM and aftermarket supplier to commercial vehicles
As SiC Technologies discussed their LaunchPad experience, they mentioned that the process was very straightforward and instrumental in getting better structure in their company. They had access to many successful individuals to help guide them in the next correct step as a startup. The most valuable part of the process for them was the feedback they received on their pitch deck and how to formulate it. That same formulation helped them in their current round of raising capital.
Currently, the military has a program where they will match up to $1.5 million in investment funds received from an American accredited investment firm. Most of their proposals and decks they are using are the same if not similar format to the content Launch Pad has provided helped them with.
Since LaunchPad, SiC Technologies has launched several new contracts and is no longer pre-revenue. With the two military contracts they obtained, many new doors have opened for the company to continue growing.
What’s next for SiC Technologies? SiC is currently looking at small automotive Original Equipment Manufacturing (OEM) opportunities with various clients in commercial and automotive spaces.
They are also going to expand their presence in the military, working on more defense contracts being submitted to the Airforce and Navy. Many contracts give them the opportunity to utilize their material with products beyond brakes.
Congratulations on the recent success of SiC Technologies. If you are interested in refining your investment capital strategy or pitch deck, apply to LaunchPad!