DREAMSTAR LINES

GO TO BED. WAKE UP THERE

The LA to SF Commute Sucks
FLIGHTS
• TSA lines are growing year over
year
• Planes are at capacity
• 6 hours door to door

DRIVES
• 6 - 8 hours of driving is not fun
• Wear and tear on your vehicle
• 100% inefficient wake time,
no rest
Transportation is Evolving
Exciting solutions are in the works:
• Self driving cars
• Hyperloop evolution
• Sleeper buses

BUT THEY ARE EITHER….

• NOT COMFORTABLE ENOUGH
• NOT FAMILIAR ENOUGH
• NOT AVAILABILE IN THE NEAR FUTURE
• LUXURY IS TOO EXPENSIVE / UNAVAILABLE
DreamStar Lines
AN OVERNIGHT LUXURY HOTEL TRAIN

 A singular focus on profitable “SWEET

SPOT” routes (~500 miles where drives
are too long and flights inefficient)

 Luxury priced at economy flight rates

 Lie flat recliners, private rooms, private

bathrooms, suites, sky views

 Sleep, work, watch a movie, have a drink

 Start in the city, end in the city –

Reduced ride share costs at end points
Obstacles

TRACK RIGHTS
• Track access for the SF to LA route must be
obtained from 3 track owners:
 Metrolink
 Union Pacific Railroad
 Caltrain

EQUIPMENT COSTS
• Each passenger car will cost ~$3M
• Locomotives are leased annually for $365K
Sustainable Advantages
BIG PLAYERS CAN’T COMPETE
• Dreamstar designs optimized for
simple overnight vs. multi-day =
HIGHER MARGINS
• Amtrak has restricted overnight
“Sweet Spot” scheduling due to
need to service far endpoints and
multi-day routes
INDUSTRY EXPERTISE
• Experienced southern California
attorneys who have represented transit-
related public agency clients
• Expertise with the extensive regulatory
approvals

EXCLUSIVE RAIL RIGHTS

• Strategic host line agreements with
exclusive service rights
• Very few Class 1 railroads control
most of the track over Dreamstar
routes
• Agreements intended to lock up a
significant proportion of the
potentially profitable routes
What you need to know
LOW INTEREST FEDERAL FUNDING (RRIF)
• Federal Railroad Administration’s Railroad Rehabilitation & Improvement Financing (RRIF)
• $35 billion in direct loans (of which only approximately $2 billion has yet been loaned) to
finance development of railroad infrastructure.
• Repayment periods of up to 35 years
• 2.75% interest rates

3.6M 10M
MARKET SIZE
• 2nd busiest flight route in the US
• 9th busiest flight route in the world Annual flights
LA - SF
Annual car trips
• 3% annual travel market growth
LA - SF
• Profitable with > 0.3% market capture

$30M

Annual Dreamstar Revenue

3% of Available Market
The Team CONFIDENTIAL
Rail Operations
- Former rail operations
executive
THOMAS EASTMOND
- Construction and
President & CEO development of new-build
- Government and rail line
regulatory lawyer with
deep transportation law
experience TAUREAN GORDON
- Highly technical
Finance and Business Ops
railroad regulation and
public-private - Finance and operational
partnerships modeling and
optimization
- PE, acquisition, IPO,
JAKE VOLLERBREGT and outsourcing
Government Affairs
- Southern California
DAVID HARMER
government agency
Senior Advisor
- Local politics and policy
consensus - Former VP and Asst.
general counsel at JP
- Major in the Marine Morgan Chase
Corps Reserve
- Regulatory compliance,
policy advocacy
The Numbers

Launching Route Assumptions Break- Even

• Los Angeles – San Francisco • Profitable at 45% occupancy
• 2 evening trains – From both LA and SF • 70 riders / trip
• 70% occupancy
• 117 passengers/trip (208 max. capacity)
• 86,000 riders year 1 (assuming July 1st
launch)
The Plan: “Sweet Spots”

Phase 1: LA – Bay Area

• Two trains STATION TIME
• Service up to 14 stations in route Los Angeles Union
9:30 PM
• 6 passenger car train set Station
Downtown Burbank 9:40
Van Nuys 9:45
Chatsworth 10:00
Phase 2: Train Set Expansion and West Coast Expansion
Moorpark (Thousand
• 9 – 14 car train sets Oaks/Simi Valley)
10:35
• LA-Las Vegas-Salt Lake City Oxnard 10:55
• Los Angeles– Phoenix Santa Barbara 11:45
• Orange County/Inland Empire-Phoenix. San Luis Obispo (crew
2:30 PM
• Los Angeles – Sacramento change point)
San Jose (Diridon
6:30
Phase 3: National “SWEET SPOT” Expansion Station)
Sunnyvale 6:50
• 9+ additional “sweet spot” routes identified
Palo Alto 7:10
• Atlanta to Orlando Millbrae 7:40
• Orlando to Miami San Francisco (Caltrain
8:00
4th Street Station)
Our Ask
SEED ROUND:
• $800,000 - $1,000,000
• RESULTS:
• Secured agreements with Metrolink, Union Pacific, and Caltrain
• Exclusive usage of the LA – SF route during the prime overnight timeframe (~10
year contract)
• Federal Railroad Administration’s Railroad Rehabilitation & Improvement
Financing (RRIF) Approval

SERIES A:
• $18,000,000 - $20,000,000
• RESULTS:
• $20M revenue in first 12 months
• Two 6 passenger car trains

ALL FUTURE FUNDING:

• Use cash on hand and RRIF to fund expansion