GACW

GACW

Growth Stage

THE WORLD NEEDS ECO-FRIENDLY WHEELS

THE WORLD NEEDS ECO-FRIENDLY WHEELS

Overview

Raised to Date: Raised: $1,135,099

Total Commitments ($USD)

Platform

Dealmaker Securities

Start Date

12/12/2023

Close Date

05/31/2024

Min. Goal
$10,000
Max. Goal
$4,999,999
Min. Investment

$1,031

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$3.50

Pre-Money Valuation

$53,000,000

Rolling Commitments ($USD)

Status

Active

Reporting Date

04/27/2024

Days Remaining

33

% of Min. Goal

11,352%

% of Max. Goal

23%

Likelihood of Max
unlikely
Avg. Daily Raise

$8,285

# of Investors

374

Momentum
hot.svg
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Year Founded

2019

Industry

Transportation, Automotive, Aviation, & Aerospace

Tech Sector

Hardwaretech

Distribution Model

B2B

Margin

Low

Capital Intensity

High

Location

Chandler, Arizona

Business Type

Growth

GACW (Global Air Cylinder Wheels), with a valuation of $53 million, is raising funds on Dealmaker Securities. The company has reinvented the wheel by designing its patented Air Suspension Wheel. GACW’s wheel is an airless mechanical one made of steel with in-wheel pneumatic suspension. The green technology of GACW provides a cost-effective and eco-friendly alternative to pollutive rubber tires, and the testing of GACW’s wheel solution has been tested by global miners. Dr. Zoltan Kemeny founded GACW in November 2019. The current crowdfunding campaign has a minimum target of $9,999.50 and a maximum target of $123,998. The campaign proceeds will be used for marketing, research and development, engineering and design, insurance, operations, travel, and legal and professional fees.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$756,918

$0

COGS

$933,184

$0

Tax

$0

$0

 

 

Net Income

$-1,908,209

$-1,761,654

Summary Balance Sheet

FY 2022 FY 2021

Cash

$356,717

$50,883

Accounts Receivable

$340,000

$0

Total Assets

$1,820,717

$1,366,056

Short-Term Debt

$1,673,640

$2,866,005

Long-Term Debt

$0

$0

Total Liabilities

$1,673,640

$2,866,005

Financials as of: 12/12/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
GACW 05/30/2024 Dealmaker Securities $53,000,000 $1,135,099 Equity - Common Active RegCF
GACW 11/22/2022 StartEngine $39,970,598 $942,173 Equity - Common Funded RegCF
GACW 04/07/2022 StartEngine $27,409,856 $3,357,879 Equity - Common Funded RegCF
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Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Valuation History

Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Employee History

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Analyst Report

Synopsis

Our world is on the move, and the wheels that keep us rolling are predominantly made of rubber. However, rubber tires have a significant environmental impact. They are made from non-renewable resources, and their production process is highly energy-intensive and polluting. Additionally, used tires often end up in landfills, where they can leach harmful chemicals into the environment.

Phoenix-based company GACW (Global Air Cylinder Wheels) is offering a revolutionary solution to this problem. They have developed an airless mechanical wheel, the Air Suspension Wheel (ASW), primarily constructed of steel and featuring in-wheel pneumatic suspension. This patented technology provides a cost-effective and eco-friendly alternative to traditional rubber tires. It is meant for heavy-duty transportation systems.

But GACW's innovation doesn't stop at being green. The company's wheel technology has been tested by global miners and offers a robust and durable solution for heavy-duty applications. This could open up significant opportunities in sectors such as mining, construction, and heavy goods transportation, where vehicle downtime due to tire damage can have substantial financial implications.

With the funds raised in this campaign, GACW plans to invest in marketing, research and development, engineering and design, insurance, operations, travel, and legal and professional fees. This will enable the company to refine its product, expand its market reach, and continue to disrupt the global wheel and tire industry.

In summary, GACW is not just reinventing the wheel; it is reimagining it for a more sustainable and efficient future. Its innovative technology has the potential to make a significant impact on a wide range of industries, making this an exciting investment opportunity.

Next Section: Price

Price

GACW is currently raising funds at a pre-money valuation of $53 million. Although GACW's revenue is currently at $756,918, the company is in the growth phase and has the potential to generate higher revenues. Still, the valuation of $53 million implies a high revenue multiple of 70.02x, indicating that the company is currently overvalued based on its current revenue.

Investors in this round will receive common shares from GACW. Common shares are less favorable than preferred shares as they do not offer any protection in case of a liquidation event.

Next Section: Market

Market

GACW Inc. operates in the global Off-The-Road (OTR) tire market, valued at $8.7 billion and projected to grow at a compound annual growth rate (CAGR) of 5.5%. This market primarily caters to the needs of the construction and mining industries, which have witnessed significant growth post-pandemic. As a result, the demand for construction equipment, and subsequently, OTR tires, is rising.

Bearing in mind the growing concerns about environmental sustainability, GACW's airless mechanical wheel offers an eco-friendly alternative to traditional rubber tires. The patented Air Suspension Wheel (ASW) is constructed primarily of steel, with in-wheel pneumatic suspension. This green technology prevents the pollution caused by rubber tire manufacturing and provides a cost-effective solution for users. The successful testing of GACW's wheel solution by global miners adds to this innovation's credibility and potential market acceptance.

However, the market is moderately competitive, with established players such as Bridgestone, Michelin, and Goodyear. To successfully penetrate the market, GACW will need to demonstrate the unique benefits of its product offering, such as cost-efficiency and eco-friendliness, and ensure its technology can match or exceed the performance and reliability of traditional rubber tires.

Given the growth trajectory of the OTR tire market and the increasing global emphasis on sustainable practices, GACW's innovative, eco-friendly wheel technology is well-positioned to capture a significant market share. The company's green technology addresses a key trend in the market and offers a solution that could reshape the industry's future.

Next Section: Team

Team

GACW is led by founder, CEO, and president Zoltan Kemeny. Kemeny has a deep passion for wheels and has been working to popularize airless tires, such as the "Shweel," for over 15 years. He has a structural and surveying engineering background, with an MS and PhD from the Budapest University of Technology and Economics. Kemeny's experience includes working at various self-owned enterprises and as an associate professor and research worker at the Hungarian Academy of Sciences.

A team of professionals skilled in business development, sales, and engineering supports him. This well-rounded team compensates for the founder's unaccomplished track record, resulting in an average team score for GACW.

GACW will appoint a new Chief Technology Officer (CTO), Rodrigo Pinheiro. Pinheiro currently serves as the Vice President of Engineering at Click Bond, a company specializing in adhesive-bonded fasteners for aerospace applications. He brings valuable experience from his previous roles at General Motors and Arconic, where he focused on lightweight metals engineering and manufacturing.

The GACW team, led by founder Zoltan Kemeny and supported by the upcoming addition of CTO Rodrigo Pinheiro, is dedicated to revolutionizing the wheel industry. Their engineering, marketing, and business development expertise positions GACW for growth and success in the global OTR tire market.

Next Section: Differentiation

Differentiation

With its innovative design and superior performance, GACW's Air Suspension Wheel (ASW) sets itself apart from traditional rubber tires. The ASW has undergone extensive field tests with global mining companies, and the results have been highly encouraging. According to GACW, their tires offer several key advantages over standard off-the-road (OTR) tires, including fuel savings, increased payload capacity, durability, heat resistance, and reduced cost per mile. GACW's tires demonstrate a significant quality differentiation.

While GACW's tires are more expensive per unit than standard OTR tires (ranging from $5,000 to $10,000 versus $2,000 for standard tires), their extended lifespan of up to 10 years provides substantial cost savings. In contrast, traditional mining tires need to be replaced every six months. This cost-effectiveness, combined with the high quality of the product, contributes to a strong product differentiation for GACW.

GACW faces competition from established industry players like Bridgestone, Michelin, and Goodyear in the OTR tire space. These companies are also exploring airless tire technology to disrupt the market. New entrants like The SMART Tire Company are also developing airless tire solutions. However, GACW's innovative ASW technology and its proven performance in field tests give it a competitive edge over its direct competitors.

GACW's patented ASW is a disruptive solution that offers a cost-effective and eco-friendly alternative to traditional rubber tires. Its airless mechanical design, constructed primarily of steel with in-wheel pneumatic suspension, provides durability and eliminates the need for pollutive rubber. The company's partnerships with global mining companies and its traction in the market demonstrate the potential for widespread adoption of GACW's technology.

With a high level of product differentiation, a strong competitive landscape, and high barriers to entry, GACW is well-positioned to capture a significant share of the global OTR tire market. Its innovative ASW technology and its ability to deliver superior performance and cost savings make it an attractive choice for transportation, automotive, aviation, and aerospace companies.

Next Section: Performance

Performance

GACW has shown promising traction and achieved notable milestones in its journey to revolutionize the wheel industry. The company was recognized as one of the 200 TIME's best sustainable inventions in 2023, highlighting the innovative and eco-friendly nature of its patented Air Suspension Wheel (ASW).

GACW has secured $1.5 million in licensing deals, indicating the market's interest in its technology. The company has also obtained 37 patents and has 75 pending patents, demonstrating its commitment to innovation and intellectual property protection. These patents provide GACW with a competitive advantage in the industry.

GACW has established partnerships with global mining companies, conducting three ongoing trials with these industry leaders. This collaboration allows GACW to test and validate its wheel solution in real-world conditions and gain valuable insights for further improvement. GACW has a sales pipeline with more than 20 companies, indicating strong market demand and potential future growth.

Financially, GACW has exhibited positive performance, with high revenue growth since its last funding round. The company generated $756,918 in annual revenue, showcasing its ability to generate sales and gain traction in the market. 

GACW executed well since its latest raise. It generated revenues, signed more contracts with customers, and increased its pipeline. The founder's projections were revealed to be accurate.

GACW's ASW product offers a cost-effective and eco-friendly alternative to traditional rubber tires. The ASW's airless mechanical design, constructed primarily of steel with in-wheel pneumatic suspension, provides superior performance and durability. Global miners have tested and validated the wheel solution, further validating its effectiveness and potential for widespread adoption.

However, the company operates with a very thin cash reserve and heavily relies on account receivables. As of November 2023, the company had only $66,000 on hand and burned $240,000. This raise is critical for GAWC and the company could be bankrupt at any time if it doesn't cut its raise.

Overall, GACW's performance and achievements position the company as a strong player in the transportation, automotive, aviation, and aerospace industries. With its innovative technology and growing customer base, GACW has the potential for significant growth and market impact.

Next Section: Risk

Risk

GACW faces several risks as it seeks to establish itself in the global OTR tire market with its innovative Air Suspension Wheel.

One significant risk is the competition GACW faces from well-established tire manufacturers such as Bridgestone, Michelin, and Goodyear. These companies have long-standing brand reputations, extensive distribution networks, and significant resources, which may make it challenging for GACW to gain market share and compete effectively.

Another risk is the need for extensive production and quality control. As a hardware/CPG company, GACW must ensure its Air Suspension Wheels are manufactured to high standards and meet all necessary safety requirements. Any production or quality control issues could lead to product defects, customer dissatisfaction, and reputational damage.

Additionally, GACW is operating with low cash reserves. It only had $66,000 on hand in November 2023 but was burning $240,000 every month. This could put the company at bankruptcy risk.

GACW also faces the challenge of scaling production and sales. While the company has achieved some initial revenue, scaling up production and distribution to meet global demand requires significant resources and time. GACW must secure partnerships and collaborations to expand its reach and ensure a smooth and efficient distribution process.

Financially, GACW has a negative net income and requires ongoing funding to sustain its operations. The company's high monthly burn rate indicates a reliance on external funding sources to cover its expenses. Insufficient funding could hamper GACW's ability to execute its growth plans and achieve profitability.

Additionally, GACW's valuation may be a concern for potential investors. The company is considered overvalued, which raises questions about the potential return on investment. Investors should carefully evaluate the company's growth prospects and market potential to determine if the valuation is justified.

Next Section: Bullish Outlook

Bullish Outlook

GACW has boldly revolutionized the wheel industry with its patented Air Suspension Wheel (ASW). This innovative design, featuring an airless mechanical steel wheel with in-wheel pneumatic suspension, offers a sustainable and cost-efficient alternative to traditional rubber tires. GACW's ASW has undergone rigorous testing by global miners, solidifying its reliability and functionality.

GACW's green technology provides environmental benefits and presents a significant market opportunity in the global OTR tire market. With a valuation of $53 million, GACW has already gained traction among users and formed strategic partnerships. The company's annual revenue of $756,918 demonstrates its ability to generate sales, and its high revenue growth since the last round indicates its potential for continued success.

Furthermore, GACW's patented technology and high barriers to entry create a competitive advantage in a moderately competitive landscape. The company has effectively leveraged its innovative solution to position itself as a leader in eco-friendly wheel technology.

Although GACW operates in a capital-intensive industry, the current crowdfunding campaign on Dealmaker Securities reflects investors' confidence in the company's growth potential. The funds raised from the campaign will be allocated towards crucial areas such as marketing, research and development, engineering and design, insurance, operations, travel, and legal and professional fees, which will further support GACW's expansion and market penetration.

In conclusion, GACW's groundbreaking Air Suspension Wheel represents a game-changing solution in the transportation, automotive, aviation, and aerospace industries. With its focus on sustainability, strategic partnerships, and a proven revenue model, GACW is well-positioned to capitalize on the high market potential and drive further growth in the coming years.

Next Section: Bearish Outlook

Bearish Outlook

GACW operates in a moderately competitive industry, facing well-established competitors such as Bridgestone, Michelin, and Goodyear. These companies have a strong foothold in the transportation, automotive, aviation, and aerospace sectors and have extensive resources, brand recognition, and distribution networks. It will be challenging for GACW to penetrate the market and gain significant market share against such established players.

GACW's valuation appears to be on the higher side, considering its current revenue and financial performance. This raises questions about whether the company is overvalued and if investors can expect a significant return on their investment given the current financial outlook.

Additionally, GACW is operating with low cash reserves. It only had $66,000 on hand in November 2023 but was burning $240,000 every month. This could put the company at bankruptcy risk.

Furthermore, GACW's success depends on overcoming high barriers to entry in the industry. The transportation and automotive sectors have stringent regulatory requirements, complex supply chains, and strong customer preferences for established brands. GACW will need to demonstrate the reliability, safety, and cost-effectiveness of its Air Suspension Wheel to gain the trust and adoption of potential customers.

Next Section: Executive Summary

Executive Summary

GACW Inc. has developed an innovative solution to address the environmental concerns associated with traditional rubber tires. The company's patented Air Suspension Wheel (ASW) is a mechanical wheel constructed primarily of steel with in-wheel pneumatic suspension. This airless wheel provides a cost-effective and eco-friendly alternative to pollutive rubber tires.

The company is based in Phoenix, Arizona, and operates in the global Off Road Tires (OTR) market, driven by construction and mining activities. Global miners have tested GACW's wheel solution, and the company has more than 20 companies in its sales pipeline. Moreover, GACW has already secured $1.5 million in licensing deals and has issued 37 patents, with an additional 75 patents pending.

The company has demonstrated significant traction, with its technology selected among TIME's best sustainable inventions in 2023. Furthermore, GACW has achieved a steady revenue growth of 44% over the past three years, generating $756,918 in the last fiscal year. However, the company is yet to turn profitable, with a net income of -$1,908,209.11 in the most recent fiscal year.

GACW faces competition from established tire manufacturers such as Bridgestone, Michelin, and Goodyear. However, the company's unique value proposition and focus on sustainability give it a competitive edge in the market. The company is raising funds for marketing, research and development, engineering and design, insurance, operations, travel, and legal and professional fees.

With its innovative product, growing traction, and a clear focus on sustainability, GACW presents an intriguing investment opportunity in the transportation and automotive industry.

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GACW on Dealmaker Securities 2023
Platform: Dealmaker Securities
Security Type: Equity - Common
Valuation: $53,000,000
Price per Share: $3.50

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