Elven Technologies to Sell License of Firefighting Uniform Production in US
A fireproof uniform made in Georgia may sell for at least $ 5,000 in the US market. The project is implemented by Elven Technologies.
Vamekh Kherkheulidze, the co-founder of the company, told Business Partner that laboratory testing of 2 uniforms (completely fireproof and relatively light, non-fireproof uniform) on the American market is currently underway, which will be completed by the end of 2022.
According to Kherkheulidze, the product needs to be patented and licensed.
"It depends on which market you enter, you must also have a license from that country. There is an American and European license, both cut in Georgia, however, it is quite difficult to obtain. It takes one year each year to patent and license a product. Also, obtaining a license is associated with quite large sums of money, ”said Kherkheulidze.
The co-founder of Elven Technologies says that now the main business model of Elven Technologies is to sell licenses.
According to him, this business model allows for less risky and faster commercialization.
Kherkheulidze explains how much a firefighter uniform made with Georgian innovative technology will be sold on the American market. In general, a firefighter outfit costs 4000-5000 dollars on the American market.
"The Georgian market is not interested in our product because they wear middle class uniforms and there is an unrealistic difference in price. The equipment of our firefighters costs about 300-500 dollars, ”said Kherkheulidze.
As for the brand under which the fire-resistant uniform made by Elven Technologies will be sold as a result of the license sale, Kherkheulidze says that the product will most likely be sold under the brand of the company purchasing the license.
Innovative technology company Elven Technologies has been working since the spring of 2019 to create a fireproof firefighting uniform equipped with an internal cooling system and has no analogues in the world. The authors of the uniform made in Georgian handwriting claim that the costume created by them gives a high guarantee of fire protection.
Fire-resistant firefighting uniforms reduce the risk of death and burns, while increasing the chances of fire victims surviving.
According to Kherkheulidze, the company has reached the level when it has exhausted Georgia's technological and financial resources. As a result, from January 2022, Elven Technologies will establish a new company in America, which will be focused on attracting investments.
"In order for us to start selling in the American market, to go to Company X, which will buy a license from us, we will need to invest 2-5 million dollars. To attract such a volume of finances, there we need to find investors who will invest this money in us. For that to happen, we must have an American company. The American will not invest so much in a Georgian company.
In order for us to stand in the way of licensing in America, we need to invest. In order to receive a 350,000 GEL grant from GITA, we need to invest 70,000 GEL by December 24, ”Kherkheulidze said.
The Elven Technologies team has received a € 100,000 grant from the Innovation and Technology Agency and a € 30,000 grant from the Council of Europe. Also, the team closed the first investment round of $ 160,000 at the end of 2020, in which nine investors participated. Among them was Technovate, an American venture studio from Silicon Valley.