In this inspiring Q&A, we sit down with Deme Yuan, cofounder of FR8relay, to explore her entrepreneurial journey and how she and her team are revolutionizing the logistics industry. FR8relay recently secured a $1 million grant through the SBIR Phase II program, a major milestone that underscores the innovation driving the company forward. Deme and her cofounder (and husband) Aayush Thakur have gained invaluable experience in what it takes to build a tech company that stands out. Whether you’re looking for tips on nondilutive fundraising, team building, or finding work/life balance as an entrepreneur, Deme’s experiences offer a founder’s roadmap for turning vision into reality.
Don’t miss this opportunity to learn from a leader who’s transforming logistics with innovation and grit!
Securing SBIR funding is a huge accomplishment—can you walk us through your experience with the application process for both Phase 1 and Phase 2? What challenges did you face, and how did you overcome them?
We’ve applied for multiple SBIR grants, including NSF, DOE, and USDA Phase 1 and 2. Each department has different requirements, and learning what works for each one has been a process. Initially, we were unfamiliar with SBIR, but during the COVID pandemic, when pilots were on hold, we revisited the idea. Rebecca Todd and Catherine Corley from the ASBDC introduced us to SBIR proposal preparation support resources, which helped tremendously. Between ASBDC and Katie Thompson’s team from Science Venture Studio, we had invaluable coaches guiding us through each proposal. Kimberly Randle from Arkansas APEX Accelerator walked us through federal registration processes, and consultants like Dan Sur from Independent Platform and Sydney Gray from Gray Ink strengthened our proposal strategies and execution. One of our challenges was figuring out how to differentiate our projects for the various agencies. Another challenge was learning how to craft our commercialization plan—government language differs significantly from investor pitches, which took some adjustment.
As a logistics tech startup, how did you identify the key innovation that made FR8relay stand out to the National Science Foundation for funding?
The NSF prioritizes high-risk, high-reward innovation, which aligns with our approach. We focused on how our relay trucking model, which isn’t widely used for full truckload freight in the U.S., presents a scalable solution. While creating a relay scheduling engine isn’t the most challenging part, the real-world operational disruptions—driver no-shows, equipment breakdowns, traffic, and weather—are what make relay difficult. We made a case to the NSF for using machine learning techniques to mitigate these challenges, while also providing high rewards for truckers, profitability, and environmental sustainability.
How has the support from the Northwest Arkansas entrepreneurial community, such as incubators, investors, or mentorship, played a role in FR8relay’s growth and success?
The entrepreneurial community here has been instrumental in our journey. We connected with Startup Junkie, Science Venture Studio (SVS),Office of Entrepreneurship and Innovation (OEI), and other local programs. They’ve offered essential resources—like market research support, networking opportunities, and even commercialization fellows to help us fine-tune our approach. The collaboration between ASBDC and SVS was crucial in providing the expertise we needed to put together winning proposals.
Many founders struggle with fundraising—what advice would you give to those seeking grant funding or alternative sources of capital, especially in the early stages?
My advice is to make sure your value proposition aligns with the goals of the organization you’re applying to. For instance, NSF cares about high-risk innovation, USDA is focused on rural community impact, and the Department of Energy values emissions reduction. It’s vital to differentiate your projects to meet each agency’s specific needs. Also, use the support systems available, like ASBDC, which can help you determine if SBIR funding is a good fit or if other funding sources might be better.
What are some of the biggest lessons you’ve learned about scaling a tech startup in the logistics industry, and how have those lessons shaped your approach to building FR8relay?
One of the biggest lessons is understanding the complexities of logistics—things like traffic, weather, and human error are unavoidable, so our technology must account for real-world disruptions. Another key takeaway is leveraging government grants for research and development. This allows us to scale without giving away too much equity too early, which is crucial for long-term growth.
As a founder, what strategies have been most effective in building a team and a company culture that aligns with your mission? What tips do you have for fellow founders in this space?
We’ve built our team slowly, starting with contractors and then transitioning to U.S.-based full-time employees. It’s important to find people who can wear many hats, especially in a startup. Additionally, dividing responsibilities based on strengths has worked well for us—Aayush handles the technical side while I focus more on networking and business development. It’s critical to have people who understand the mission and are flexible enough to adapt to changing needs.
As a busy parent and full-time founder, how do you find work/life balance?
It’s always a juggling act. My mantra is that balance is a process of building, not perfection. Recently, I’ve found grounding through daily walks and meditation, which helps me stay centered. Also, integrating family life into daily routines, like walking my daughter to school, has been a helpful way to manage both roles. It’s important to accept that things won’t always look perfect, and that’s okay.
About FR8relay
FR8relay is an innovative logistics tech startup revolutionizing the transportation industry through cutting-edge relay trucking technology. By leveraging machine learning and real-time data, FR8relay addresses the critical challenges of driver shortages, efficiency, and sustainability. Their unique model optimizes routes and reduces emissions, driving value for both truckers and the environment.
To learn more about their mission and technology, visit FR8relay’s website.
